Doing business under MM2H Visa

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I am planing for MM2H and I am under 50 years old.

I need to know if I am allowed to run a business in Malaysia under this visa?

I was told that I can run a business, but I can not be an active Director of the business, where can I have more details on this?

Regards,

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I guess the simple answer is NO. The rules clearly state that you cannot work or run a business (directly). But no doubt ( knowing Malaysia) there will be away around this.

Cheers

Brian

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The closest you could get to running a business is to be a non-executive director of a legally set up Malaysian company. Or......

Set up your business in Thailand or Indonesia and commute to Malaysia. Not as daft as it may seem. I dont know much about the Indonesian side of things but I expect it's a bit tricky. Then again it's possible because people do it.

For the Thai option it's best to speak to a Thai solicitor to check out the costs etc.

Of course both countries offer the possibility of losing your loot if they have a coup d'état . After the military take over in Thailand the government stopped foreigner business's taking money out of the country. However they soon rescinded that when inward investment dried up.

Bob

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hi,

After the 1997 financial crisis, Malaysia also stopped money going out, then applied a tax.

The MoTour site FAQ section says:

Under Malaysia My Second Home Programme, participants are NOT allowed to work. However, you can apply to the Human Resources Ministry seeking special approval for you to work in Malaysia because of your special expertise.

If you are successful, you will be issued a work permit or Employment Pass. You may join Malaysia: My Second Home Programme at the end of your work permit if you decide to continue your stay in Malaysia.

It's also a requirement that you need a 6 month gap between the end of the work permit or employment pass, and the MM2H application. It's some weird "cooling off" period.

There's also this on the same MoTour site:

Participants under this programme are NOT allowed to have their own businesses. However, they are allowed to invest in local companies as an inactive partner. They are allowed to attend Company’s Board Meetings as one of the company directors but they are not allowed to have an office in the company. Participants can participate in the local share market.

regards, Scott

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I'm thinking that some of this may change. I detect a new and more sensible approach to the MM2H program. Waiting times are coming down, rules are getting clarified and re-engineered. Something is going on.

Here's an example,

A freind of mine asked for clarification on importing cars into the country under MM2H. Normally I would expect a vague or nonsensical answer. The answer from the head of MM2H was "so long as you own the car before your visa is granted you can import it tax free" he also said he could be quoted on this. If these facts are right I think it shows a change of attitude. May be there will be changes in the rules on working too.

Bob

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hi, Bob,

That's great news. When we finally get answers to emailed policy type questions they are indeed vague and nonsensical. The answers never really answer the question but pose other questions. If this is changing, wow.

The attempts to get sensible answers for questions on Sabah and Sarawak were frustrating. The Head of Policy (MM2H) wasn't able to give a clear answer and finally handed the problem over to a colleague.

And for an official to say that they "can be quoted" well, that's wonderful.

For the past 2 years there's been some talk (forum posts, comments by government officials, hearsay from agents) regarding relaxing the rules on no-working. It usually always concerns teaching and the medical professions.

By the way, as well as Thailand and Indonesia there's also Singapore. It's ultra quick and easy to set-up a business in Singapore and the business usually attracts a 3-year visa.

regards, Scott

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Hi Scott,

Do you think that mudtour and the SMM2H site are clearer on these things than the MM2H people?

I only just saw the site recently but it is a different layout and the PDF's are different. I havent had chance to look at the detail yet. 

I am sure you have seen it but here are some links for anyone that hasn't:

www.mudtour.sarawak.gov.my/index.php?option=com_content&task=view&id=68&Itemid=70

webmaster@mudtour.sarawak.gov.my

I didn't know that SMM2H applicants were confined to Kuching, Sibu and Miri until I read it on the site.

Please move this post as required because I have strayed off subject.

Bob

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So I am not allowed to run a business on my own.  However, is it allowed to:

1) Engage and earn on some Freelancer job, such as doing computer software programming, teaching private tuitions, doing some consultation jobs etc.,?

2) Setup a virtual office of a foreign company and work for the same in Malaysia.  However this business activities does not have any dealings with Malaysia, for example working for a UK company who sells gift items and books on the internet, the job is involved mainly on the internet.

Thanks

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Hi,

I think both options that you mention are ruled out. As far as I understand it you cannot work at all when in Malaysia.

I may do some work on the Internet when not actually in the country and any earnings would go into a UK bank account.

Of course internet working is a grey area, many people do work whilst travelling and do not require a work permit. How do you draw the line between preparing work whilst abroad and actually submitting that work?

Bob

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hi,

You're not allowed to work or have your own business on the MM2H visa. Thats all pretty clear.

1) Engage and earn on some Freelancer job, such as doing computer software programming, teaching private tuitions, doing some consultation jobs etc.

This seems to me like working in Malaysia.

2) Setup a virtual office of a foreign company and work for the same in Malaysia.  However this business activities does not have any dealings with Malaysia, for example working for a UK company who sells gift items and books on the internet, the job is involved mainly on the internet.

As Qjumper has pointed out, if someone works via the internet it's a grey area. If a tourist visitor to Malaysia decides to catch-up on some office work whilst relaxing at the pool, does he need an employment pass?

If you contact MoTour on this you'll get the standard answer that you're not allowed to work.

Over the past couple of years, it seems that MoTour has purposefully clamped down on MM2H requirements in order to deter applicants from entering Malaysia and setting-up businesses.

regards, Scott

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I think the rules about working IN Malaysia are pretty clear - you can't.  However, if you do consultancy work and that is carried out outside Malaysia and the income therefrom is remitted to a bank account in the UK, Singapore etc, then I fail to see how the MM2H visa regulations are relevant to the work and the income arising.

Paul M

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As far as I am aware there is no issue with being on MM2H & working overseas such as Singapore; Philipines, Thailand or even further afield.

The whole scheme is designed around the premise that you live here in Malaysia & spend you hard earned dosh here, but in no way should be a burden on the state!!

Thus the need for an income or sufficient funds to support yourself here, medical insurance etc so you don't become a 'drain' on the health service. and all the while you boost the local economy.

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Hi Chaps,

Some days ago I saw a documentary about medical services in Penang on UK TV. I lost interest when I realised that the program was all about cosmetic surgery specifically breast reduction and enlargement however my wife continued to watch. The company involved was run by an Austrian (or Swiss , not sure) he was obviously taking an active part in the business even to the extent of sitting in with the doctors while patients had thier breasts examined. He said "he was happy to have made Malaysia his second home", now I know this doesnt necessarily mean that he was a MM2Her but it seemed a bit suspicious.  He was obviously making tons of money and seemed to have a fantastic lifestyle.

I hope someone from the ministry takes a look at this to see if the rules are being broken.

I would enjoy working in the country if I could but I can't. This rules make this very clear. People who overtly flaunt the rules just cause MM2H to fall in to disrepute and give Malaysians good reason to criticise.

Regards

Bob

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This is a tricky one.
 I know of a couple of people on the scheme, who may not be strictly adhering to the the correct qualifying criteria. What should I do ....shop them?' or it it just none of my business

Surely it is up to the ministry(s) to do their checks, and when it comes to renewal time maybe the proverbial will hit the fan

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Hi Fizzy,

I don't think you should shop them. I agree it's up to the ministry to carry out the checks.

When it comes to someone advertising on UK TV that he is working while being a member of the scheme then I do think that's a bit too much to swallow. He is putting two fingers up to us all and to the Malaysian Governement.

Bob