Andy Davison, who has made Malaysia his home, explains why the Malaysia My Second Home programme is very good for Malaysia. He has been closely involved with the programme since its inception and assists people seeking a MM2H visa. His company, TEG Media, has been actively promoting Malaysia for over 20 years.

I often hear or read negative comments about the MM2H programme and people frequently ask why the programme exists and what good does it do for Malaysia. Quite recently a politician asked in Parliament, once again, what was the rationale for the programme. The response from the Minister, suggested even her department is not aware of the benefits.

As someone who has studied the programme and communicated with many thousands of applicants and MM2H visa holder I believe I have some valuable insights into the programme, and its contribution to Malaysia. Most MM2Hers are very happy when they choose to live here and enjoy a pleasant lifestyle but it’s not all one sided. Malaysia has a lot to gain from their presence


Contrary to some views, the foreigners living here under the programme are not taking advantage of the countries free services and becoming a drain on the resources. Far from it; in order the join the programme they must show a net household income, from outside Malaysia, of at least RM10,000 a month. This places them in the a high income bracket for retirees. Those that choose to relocate here, and to a lesser extent those come here for extended stays bring in valuable foreign exchange.

Research we conducted ten years ago, among several hundred MM2Hers, revealed that they brought an average of RM9,800 a month into the country to cover their living costs . We suspect this figure is higher today. That is around RM108,000 per annum and if you have 10,000 MM2Hers spending that much that is over RM1 billion a year being contributed to domestic spending. As any economist will tell you, that’s good for the country’s economy. It goes without saying that the more money being spent in Malaysia the more jobs are created .

To the extent that MM2Hers also make capital expenditure, such as buying houses or cars, this is additional funds coming into Malaysia and can amount to many billions of Ringgit.


At first glance it may be hard to see any non-financial benefits but we have identified quite few:

MM2Hers typically have a lot of time on their hands and many become frequent domestic travellers contributing to domestic tourism which often means spending money in areas of the country where other economic activity is slower.

MM2Hers usually have a large number of friends, relatives and ex business colleagues and can spread positive messages about the country around the world. Not surprisingly many will come and visit which will add to tourism arrivals for the country.

As with most older people, health care is important to MM2Hers and the fact they choose to live here is a tacit endorsement of the countries medical facilities and can clearly be used to promote medical tourism to the country.

Malaysia often receives negative international press which can make people view the country negatively causing some people to worry about coming to live here or visit. Working expats typically come here because of job opening s but MM2Hers choose to live here which is a powerful endorsement of the country, even more so given the some western countries paranoia about Islamic countries. This can be an important selling point when trying to encourage foreign companies to invest in Malaysia.

Many of the older people who come here have acquired valuable skills during their careers. This could be exploited for the benefit of the country. Although this does not happen much at present this is a significant opportunity if it was made easier for them to take on part time employment. Being older they are not a threat to the unemployed, younger Malaysians who would be looking for different types of job opportunities..


There are some Malaysians who worry about the social impact of foreigners living here. We do not believe this is a concern. The Malaysian population grows by around 500,000 a year. The number of Malaysia My Second Homers relocating here each year is a few thousand and has minimal impact. Even the numbers were to double or treble it would still be small percentage of the new Malaysian births each year; and, of course unlike babies who require money and nurturing, these new arrivals are completely self-sufficient and contribute from the day they arrive.

Concerns have been raised about MM2Hers living in exclusive expat compounds but all our research shows this is not the case. In fact for dozens of MM2Hers we have interviewed for our long running (since 1996) monthly magazine The Expat the vast majority say they have more Malaysian friends than expats.

The fact they are older and not short terms tourists, focused primarily on having a good time, results in them being more accepting and respectful of the local culture and practices. They want to be accepted into local society which may be very different to that where they grew up but is one they now to choose to embrace. As a person who believes improved interaction between people of different races and societies leads to better understanding, which contributes peace and global harmony this can only be good thing.


My conclusion after 15 years involvement with the programme is that it has the potential to become a valuable contributor to Malaysia’s economic growth both directly though the financial contribution and indirectly through the various non-financial benefits listed above

However, I feel it would benefit from addressing a few of the rules which in my view are counterproductive and also from additional marketing funds to increase awareness among the target audience.