Sarawak S-MM2H and Sabah MM2H: How East Malaysia's Programmes Differ From Federal MM2H

Sarawak S-MM2H and Sabah MM2H: how East Malaysia's programmes differ from federal MM2H

Sarawak and Sabah do not run the federal Malaysia My Second Home programme — each state operates its own long-stay pass, with its own deposit, age, and residency terms, administered separately from Putrajaya's MM2H. If a prospective tenant tells you they're "on MM2H" and they're renting in Kuching, Miri, Kota Kinabalu, or Sandakan, the pass in their passport is very likely S-MM2H (Sarawak) or Sabah MM2H, not the federal programme most online guides describe — and the terms, verification points, and stay obligations are different enough that treating them as interchangeable is a mistake. This guide separates the three programmes so you can read a tenant's documents correctly and know what questions to ask.

SPEEDHOME's platform data — 30,000+ tenancy agreements managed across Malaysia with about 30% of tenant applications rejected at screening — is the same machinery an East Malaysia owner can lean on once the pass is approved.

How is Sarawak's S-MM2H different from federal MM2H?

Under requirements effective 1 January 2025, Sarawak's S-MM2H programme requires the main applicant to be at least 30 years old, place a fixed deposit of RM500,000 with a bank in Sarawak, pay a one-off RM5,000 processing fee, and spend at least 30 days a year in Sarawak — the pass runs five years and is renewable for a further five. That's a materially lower age floor and a state-specific deposit bank than the federal programme, and the deposit is held in Sarawak rather than nationally. Applicants approved before 2025 joined under older, lower deposit tiers of RM150,000 (single) or RM300,000 (couple) — if a tenant shows you an approval letter dated before 2025, do not treat the RM500,000 figure as what they committed to; ask for the letter's approval date rather than assuming.

Non-Resident Rental Income Tax Malaysia (2026): The 30% Rate Explained explains the practical next step: how to confirm the rental-income declaration baseline and the records LHDN expects.

The practical read for a landlord: S-MM2H is a Sarawak state programme, administered by Sarawak's own agency, and it sits alongside — not inside — the federal MM2H structure covered below. A tenant's S-MM2H approval letter and Sarawak-issued social visit pass are the documents to sight, not a federal MM2H card.

Who actually uses S-MM2H?

As of March 2025, Sarawak's tourism ministry reported Chinese nationals as the largest group of cumulative S-MM2H approvals, with 513 since the programme began in 2007, ahead of the United Kingdom (384), Taiwan (277), Hong Kong (267), and the United States (262), out of roughly 3,100 total approvals. That gives you a rough sense of the applicant pool you're likely to encounter as a Sarawak landlord — a long-tenured, multinational retiree-and-lifestyle demographic rather than a fast-turnover rental segment. It's a cumulative count since 2007, not a snapshot of how many holders are currently resident in Sarawak, so don't read it as "this many S-MM2H tenants are renting right now" — some will have exited, converted to other passes, or moved on.

What about Sabah's MM2H programme?

Sabah opened its own MM2H stream on 2 July 2024, with launch terms that included a minimum age of 30, a fixed deposit of RM150,000 (single) or RM300,000 (family), monthly income requirements of RM10,000 (single) or RM15,000 (family), purchase of a high-rise property worth at least RM600,000, and a minimum stay of 30 days a year on a 10-year pass. Those criteria were reported as revised into a tiered structure in December 2024 — so treat the July 2024 numbers above as launch-era terms, not necessarily what a Sabah MM2H applicant is committing to today. Before relying on any specific figure for a Sabah MM2H tenant's paperwork, confirm it against the current official Sabah government announcement rather than an agent site or an older news article; the programme has changed once already within its first six months.

Read RPGT When Selling a Tenanted Rental Property in Malaysia: What Investors Owe alongside this guide to include exit tax and a tenanted-sale timeline in the decision.

How does federal MM2H compare?

Federal MM2H, S-MM2H, and Sabah MM2H are three separate programmes with different agencies, deposits, and property obligations. This is the shape as understood in 2026 — always verify the specific applicant's current documents rather than assuming a tier from the table alone.

The federal programme's four tiers — Silver (USD150,000, 5-year renewable pass), Gold (USD500,000, 15 years), Platinum (USD1 million, 20 years), and the Special Economic Zone route (USD65,000 for applicants aged 21–49, or USD32,000 for 50 and above, 10 years) — sit entirely outside Sarawak's and Sabah's state programmes. A landlord in Peninsular Malaysia dealing with a federal MM2H tenant is looking at a different deposit currency (USD, not RM), a different issuing body, and often a different age floor than a Sarawak or Sabah landlord dealing with a state-programme tenant. Mainland federal tiers also require buying a Malaysian residential property within roughly a year of approval, and up to 50% of the fixed deposit may later be withdrawn for approved purposes such as property, medical, or education spending — none of which is a stated feature of the state programmes as currently described. For the fuller federal-programme walkthrough, including how it interacts with buying versus renting while you complete a purchase, see the foreign investor's guide to owning and renting out property in Malaysia.

Can I rent out an East Malaysia property to an MM2H tenant from abroad?

Yes — the same full-service structure that works for a Peninsular Malaysia rental applies in Sarawak or Sabah: screening, a stamped tenancy agreement, rent collection you can check remotely, and ongoing management by a local operator, so you're not relying on a relative or a part-time agent to handle problems on your behalf. SPEEDHOME runs that structure nationwide, and the operator numbers behind it apply regardless of which state the property sits in — roughly 30% of tenancy applicants are rejected at SPEEDHOME's screening step before any tenancy agreement is signed, and the platform has managed 30,000+ tenancy agreements with zero reported rental scams since April 2026. For an investor whose only exposure to the property is through documents and a screen, that screening filter and track record matter more than they would for someone who can drive past the unit.

Foreign Investor's Guide to Owning and Renting Out Property in Malaysia helps you test the cash flow, tax and exit consequences before committing capital, using the evidence specific to “Foreign Investor's Guide to Owning and Renting Out Property in Malaysia”.

One hedge worth stating plainly, because it's easy to assume East-Malaysia rules mirror the Peninsula: Sarawak and Sabah each run their own land laws and foreign-ownership consent processes, separate from the National Land Code framework that applies in Peninsular Malaysia, and this guide does not carry specific purchase-price thresholds for either state. If you're buying — not just renting out an existing unit — in Sarawak or Sabah, get state-specific legal advice on the land rules before you commit, rather than assuming a Peninsular-Malaysia purchase threshold applies. The RPGT guide for selling a tenanted rental property and the Singaporean buyer's guide to Johor property costs are both Peninsular-specific for the same reason — don't extend either one's numbers to an East Malaysia purchase. And before you sign any tenant or lean on any property's paper trail, verifying ownership properly is the step that catches problems earlier than a passport check ever will.

If you'd rather not build the screening-to-management chain yourself for an East Malaysia unit, SPEEDHOME's landlord service runs it as one structured workflow, the same way it does for Peninsular Malaysia rentals.

FAQ

Is Sarawak's S-MM2H the same as federal MM2H?

No. S-MM2H is a Sarawak state programme with its own deposit (RM500,000 from January 2025), age floor (30+), and administering agency — separate from the federal MM2H programme run by MOTAC, which uses USD-denominated tiers.

Does Sabah have its own MM2H programme too?

Yes. Sabah launched its own MM2H stream on 2 July 2024, with terms reported as revised into a tiered structure in December 2024. Always confirm the current requirements against the latest official Sabah announcement before relying on a specific figure.

What deposit does an S-MM2H applicant need in 2025?

RM500,000 placed with a bank in Sarawak, plus a one-off RM5,000 processing fee, under requirements effective 1 January 2025. Applicants approved before 2025 joined under lower deposit tiers of RM150,000 (single) or RM300,000 (couple) — check the approval letter's date rather than assuming the current figure applies retroactively.

Which nationalities hold the most S-MM2H approvals?

As of March 2025, Chinese nationals led cumulative approvals with 513 since 2007, ahead of the UK (384), Taiwan (277), Hong Kong (267), and the US (262), out of roughly 3,100 total approvals — a cumulative historical count, not a current-resident snapshot.

Can I buy property in Sarawak or Sabah as a foreigner the same way I would in Peninsular Malaysia?

Not necessarily — Sarawak and Sabah each run their own land laws and foreign-ownership consent processes, separate from Peninsular Malaysia's National Land Code framework. Get state-specific legal advice before committing to a purchase; this guide does not carry East Malaysia purchase-price thresholds.

Can I manage an East Malaysia rental property without living there?

Yes, using the same structure that works for a Peninsular Malaysia unit — screening, a stamped tenancy agreement, remote-checkable rent collection, and a local management operator. SPEEDHOME runs this nationwide, including Sarawak and Sabah.