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Malaysia Country Profile

Passport
For more details visit Malaysia Passport Ranking
  • Passport Grade
    A-
  • Passport Ranking
    44/198
  • Passport Score
    167.8/198
  • Visa-free Countries
    154
  • Visa-required Countries
    44
  • Access to the World's GDP
    64%
  • Access to the World's Surface Area
    56%
  • Access to the World's Population
    62%
  • Access to the Unesco Sites
    82%
Citizenship and Naturalization
Birthright citizenship (Jus Soli)
  • Birthright citizenship (Jus Soli)
    Restricted
    Restricted: A child born in Malaysia will become a citizen at birth if at least one of the parents is a Malaysian permanent resident.
Naturalization - Standard Conditions
  • Minimum residency period
    10 years
    Successful naturalizations are reportedly rare. The process is highly discretionary.
  • Physical presence requirement
    –
  • Language test
    Yes, Malay
  • Need to renounce original citizenship?
    Yes
  • Can minor children naturalize?
    –
  • Can naturalized parents pass citizenship to a child born abroad?
    –
  • Can you lose naturalization due to prolonged absence/ naturalization elsewhere?
    –
Naturalization - Your Spouse is a Citizen
  • Living IN the country: Residency/marriage requirement
    2 years / 0 years*
    Only females married to Malaysian citizens may apply after 2 years of permanent residency. No special provisons for male applicants.
  • Living ABROAD: Marriage requirement
    –
  • Language test
    No
  • Need to renounce original citizenship?
    Yes
Naturalization - Other Beneficial Provisions
  • Your child is a citizen
    No provisions
  • Citizens of specific countries
    No provisions
"–": The provision has not been analysed.
Visas and Residencies
Visas and Residencies
Taxation
For more details visit Cost of Living
  • Taxation Type
    Territorial
A tax resident of a country with a TERRITORIAL tax system pays taxes on the income generated within the country only. Income generated outside of the country remains tax-free.
Schiff Sovereign's Take on Malaysia
Malaysia is one of those countries that offers both big advantages and disadvantages. 

On the plus side, the country offers excellent value. The country’s capital – Kuala Lumpur (KL) – is an advanced, beautiful and modern city. And given its level of development, it's amazingly inexpensive.

Penang – a tropical island with amazing beaches – is another place favored by Westerners. 

Malaysians, in general, are very friendly and helpful, and many speak English well.

The healthcare is excellent and cheap in the country, which makes it attractive for retirees and medical tourists alike. 

Malaysia is also a great hub for travel throughout Southeast Asia: Malaysia Airlines flies to all the key cities in the region, and often very cheaply.

On the “excitement” scale, Malaysia lands somewhere between Thailand (crazy and festive) and Singapore (staid and calm). Malaysia offers a nice compromise between the two.

For many years, the country has been home to a very popular residency program – the Malaysia My Second Home (MM2H) program. It offered a ten-year renewable visa, which did not result in permanent residency or citizenship. 

But in 2020, the government shut down the program citing the pandemic. When the program was reopened again in 2021, its conditions became much stricter, to the point of being ridiculous.

But all these years, Malaysia's autonomous province of Sarawak has been running their own version of the MM2H program. Now it has become a no-brainer choice, as you can live anywhere in Malaysia with a Sarawak residency permit.

However, consider the potential downsides, too. 

The weather is tropical in Malaysia, so if you don’t like never-ending heat, then you may have a hard time adjusting there.

Also, Malaysia can be corrupt. And although foreigners don’t tend to experience this much, there are a number of restrictions on personal freedom. There are also internal tensions between ethnic Malays and a significant Chinese minority (this generally does not affect foreigners either).

Finally, considering how developed the local markets are, Malaysia can be a great place to invest. In fact, some of the stock picks in our 4th Pillar investment letter have been based in Malaysia.
Schiff Sovereign's Rolodex
Service Providers available in Malaysia
  • Immigration (residency, citizenship)
  • Real Estate (agents, lawyers)
Obtain access to our Rolodex by signing up for Sovereign Confidential Join Sovereign Confidential Today

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Malaysia Overview
  • Region
    Asia
  • Capital City
    Kuala Lumpur
  • Largest City
    Kuala Lumpur
  • Currency
    Malaysian ringgit
  • Languages
    Malay, English, Chinese langauges
  • Population
    32.7 million (45th)
  • Life Expectancy
    76.1 years (105th)
  • GDP (Nominal)
    $434.1 billion (36th)
  • GDP/Capita
    $13,255 (76th)
Useful Data
For more details visit Cost of Living
  • Cost of Living
    Very cheap (2/7)
  • Climate
    Bearable (4/5)
  • Safety
    Safe (3/7)
  • Pollution
    Average (3/5)
  • English Proficiency
    High (2/5)

Sovereign Global Explorer

Benefiting from over a decade of our team’s boots-on-the-ground experience, Global Explorer is where your international journey begins.
Explore Now
Found a mistake /
Have a suggestion ?
Please let us know if you spot any inaccuracies on this page or have a suggestion on how to make it even more useful.
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PREMIUM REPORTS
Malaysia inside Schiff Sovereign resources
Resource TitleProductTypeDate
January 2024 SC Q&ASovereign ConfidentialSMCQ&A30-Jan-2401/30/24
Digital Nomad Visas Roundup: Part I (Europe and Asia)Sovereign ConfidentialSMCBlack Paper06-Mar-2303/06/23
February 2023 SC Q&ASovereign ConfidentialSMCQ&A27-Feb-2302/27/23
August 2021 SMC Q&ASovereign ConfidentialSMCQ&A30-Aug-2108/30/21
January 2021 SMC Q&ASovereign ConfidentialSMCQ&A29-Jan-2101/29/21
Reporting requirements when applying for residency/citizenship programsSovereign ConfidentialSMCBlack Paper25-Jan-2101/25/21
Malaysia suspends the federal MM2H program (but not Sarawak’s local program), hints at potential citizenship by investmentSovereign ConfidentialSMCAlert10-Aug-2008/10/20
How to retire in a modern, exotic, yet low-cost paradiseSovereign ConfidentialSMCAlert25-Jul-1907/25/19
Family of four finds their new home in MalaysiaSovereign ConfidentialSMCCase Study28-Dec-1712/28/17
Medical tourism: Discover high quality, less expensive healthcare options abroadSovereign ConfidentialSMCAlert05-Dec-1712/05/17
Golden Visas - a Roundup of Economic Residencies around the WorldSovereign ConfidentialSMCBlack Paper06-Jul-1707/06/17
Sovereign Man Country Rankings: The Right Country for YOU, with Simon's insightsSovereign ConfidentialSMCBlack Paper06-Apr-1704/06/17
Meet FATCA’s even nastier cousin: CRSSovereign ConfidentialSMCAlert26-Feb-1602/26/16
Benefits of an offshore company and how to select the right jurisdiction for youSovereign ConfidentialSMCMonthly Letter19-Jan-1601/19/16
SMC Comprehensive Residency Update: 2015 EditionSovereign ConfidentialSMCAlert03-Mar-1503/03/15
Malaysia: an appealing residency opportunitySovereign ConfidentialSMCAlert15-May-1305/15/13

Articles featuring Malaysia

Sabah MM2H Program Launch 2023
Second Residency

Sabah Province launches alternative MM2H visa program in Malaysia

In 2021, Malaysia’s My Second Home (MM2H) visa program became way more expensive. Fortunately, the country’s autonomous Sarawak Province had a far more accessible regional version of the program. And now, Sabah Province is following suit by launching its own affordable MM2H program… Malaysia’s MM2H Visa: A quick recap of recent program changes… In 2021, […]
Second Residency

Introducing the Sarawak MM2H Program: A cheaper alternative to the Malaysia MM2H Program

Why Malaysia makes sense as a retirement destination… As a place to spend your golden years, Malaysia has a lot going for it: warm weather, sumptuous cuisine, world-class beaches and a relaxed, low-cost lifestyle has made the country extremely popular as a destination for expat retirees. Affordable medical care, high levels of personal safety, the […]
Second Residency

A closer look at Malaysia’s Digital Nomad Visa in 2023

Steeped in history and rich in culture, Malaysia is one of Southeast Asia’s most underrated destinations for digital nomads and the geoarbitrage crowd. In today’s episode, we take a look at why the country – and its new(ish) Digital Nomad Pass – could make a lot of sense in 2023… A closer look at Malaysia’s […]

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