A mm2h mate of mine who is in Penang also wanted to know the state of play for Sarawak and Sabah so he's helped with the Sabah bit. He thought that, one day, maybe he'd want to re-locate to Kota Kinabalu, or Sipandan.
I've been emailing for the Sarawak side but no clear guidelines yet, except that it seems you can't withdraw any part of your FD towards a property purchase. I'll keep on this as Kuching is a really nice place, and, for me, a good potential alternative to Peninsula Malaysia.
Back to Sabah. It seems that even if it says on your mm2h passport visa, "permitted to enter and remain in West Malaysia and Sabah until Date/Month/Year" you won't be allowed to do so for Sabah if the visa was issued at Immigration, KL. With the mm2h visa you'll only get the normal 3 months social visit pass if you enter Sabah.
Basically the "and Sabah" in your passport is null and void. So why is it on the visa?
If you already have an mm2h visa, and wish to re-locate to Sabah you'll have to employ an agent and make another mm2h application. However, you won't need to make another FD deposit, but you'll have to pay RM90 per year for a new mm2h visa.
We haven't gotten as far as working out if you can stay in West Malaysia if you apply in Sabah. Maybe someone on this site has done this and knows. And we also haven't worked out what happens if you're keen on moving between a 2nd home in Penang and a 3rd home in Kota Kinabalu.
I'll post here if there's any further clarification.
regards, Scott