Retiring away from one’s country of origin has indeed become a phenomenon among the rich and middle class of the world. This activity of migration does not have any singular pattern but crisscrosses across boundaries and demography. Malaysia is particularly strategic as it is a comparatively middle income country which makes it accessible to people from rich countries and the rich from poorer countries.

With an average rate of 1,676 approved cases from 2002 to 2008, it has come a long way from its predecessor, the Silver Hair Programme where the average rate was 828 approved cases from 1996 to 2000. This improvement could be credited to the efficiency of the authorities involved, notably the Ministry of Tourism and the Immigration Department that has taken proactive steps to implement numerous incentives, set up a one-stop centre, increase publicity and cultivate a pool of licensed agents who act as on-the-ground salesmen for the programme.

Indeed the target market has grown big enough that it can now be segmented into three broad profiles. The middle income segment from the rich countries hoping to stretch their retirement funds further are attracted by the lower living cost coupled with reasonable living standards in Malaysia. Meanwhile, the rich from the poorer countries are attracted by the comparatively higher living standards and credible amenities here, such as education and health care.

Expatriates who have worked around and gotten used to the region decide to stay on in Malaysia upon retirement. The authorities have recently encouraged the growth of a fourth sub segment which is to make it possible for expatriates working in Malaysia to continue seamlessly into the MM2H Programme once they have finished their tenure.

Foreigners consider many factors when choosing a country to live in. Amongst them are the prices and ease of ownership of properties, cost of living, health care, benefits and security. Malaysia competes with an assortment of other countries each providing their own retirement schemes. So far, the MM2H scheme has been achieving good ratings and care should be taken to maintain those ratings.

One of the biggest lures of living in Malaysia is the low cost of living, especially for foreigners. They can stretch their Dollar, Pound, Yen, Rial, Dirham here further without much sacrifice to the standards of living. The Swiss Bank UBS in 2008 surveyed 71 comparable cities in the world from London to Jakarta, and Kuala Lumpur was rated the cheapest place to buy an identical basket of 122 goods. On another note, the Economist’s yearly light-hearted Big Mac Index which among other things measures how expensive a Big Mac is in US$ in 45 countries, rated Malaysia as the second cheapest place to purchase a Big Mac in 2008.

The authorities have in February 2009, come out with several new incentives to promote the MM2H Programme to a wider market. The incentives in a nutshell are: MM2H participants can now engage in active business, work up to 20 hours a week and their children can be dependents up till 21 years of age. Foreign spouses of Malaysians, expatriates in Malaysia and parents of the main applicant are eligible for the Programme. MM2H ID Cards have been made available too.

These incentives, coupled with the fact that Malaysia allows foreigners to own properties, has no inheritance tax, places no tax on income repatriated from overseas and no real property gains tax. It should prove to be an attractive option to foreigners looking for a second home.

MM2H applications can be made directly to the MM2H One Stop centre by the applicant himself or through any of the licensed MM2H agents. Indeed any applicant who could spare the time and effort could do it himself, but like in any DIY project say plumbing, he may end up having to run a few times to the hardware store to get pipes of the correct diameter, to buy a wrench or two that he doesn’t have and perhaps still contend with leaky joints afterwards.

Like a good hardware store, the authority would have all the materials he needs for applications but he will still need to know what fits.