Asia?

[Viktor K]

It's a big continent, and most of it is foreign, so you're probably a transplant if you're here. But if you are here, you're probably sitting comfortably on a low cost of living with a bit of international travel funds (aka small percent of discretionary spending). I think it would be cool to link up.

[physdude]

I am based in Kuala Lumpur (I am also from Asia so probably not the typical ERE person), am ER (as in not extreme as I am in my 40s) and travel a fair bit around Asia. I think there are many ERs in Malaysia due to the very very low cost of living, good infrastructure and the MM2H program. I would definitely like to link up with you and anyone else based in Asia. Do PM me and we can take it from there.

[jacob]

As far as I can decipher, the MM2H program requires demonstrating liquid asset of RM500k(USD118k) but also a monthly offshore income of RM10k($2361) which with current yields 2.5% correspond to invested assets of USD1.1M+. Once those criteria are met, the way I read it is that you only need to do it once, and then you can bring your nearest family (spouse + children under 18). Or you can buy a $250k USD house.

So are we talking mainly people who have a defined benefit pension or annuities or is it exclusively a dollar millionaire's club?

PS: I've seen similar visas elsewhere (Panama, Malta, Thailand, Belize). They all require a relatively small deposit (100k) but then also demand rather monthly high incomes on the order of $1500-2500/month which is completely out of alignment with the principal requirement (20% yields?!). Not really that ERE friendly.

[Seppia]

I'll let the better informed locals confirm, but a friend of mine who just moved to HK after 5 years in Kuala Lumpur mentioned to me that the local Malaysian authorities are not exactly strict in enforcing any "max number days per year on tourist visa".
His girlfriend lived with him the whole time with just a quick border run here and there.

[The Old Man]

@ Jacob: These Visas generally require a pension or similar annuity (or a trust with a guaranteed payout setup by an attorney). Simply having assets and relying on market returns is not sufficient. When you include Trusts then it becomes ER friendly, but perhaps too aggressive for ERE.

[SandyKaryOke]

I think there are many ERs in Malaysia due to the very very low cost of living, good infrastructure and the MM2H program.

Wow! This looks like my ideal type of lifestyle. I didn't know it was that good in Asia.


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[physdude]

The trick is to apply before ER so that you have the income to show. So one can do it on as little as 200k USD provided you plan ahead.

The last provision is purchasing health insurance which is good practice anyway. Good high deductible insurance (RM 20k deductible) is about US$100 per month though you can get away for half that amount with less coverage.

[physdude]

I'll let the better informed locals confirm, but a friend of mine who just moved to HK after 5 years in Kuala Lumpur mentioned to me that the local Malaysian authorities are not exactly strict in enforcing any "max number days per year on tourist visa".
His girlfriend lived with him the whole time with just a quick border run here and there.

This is generally true and I have a friend who does that. However, the environment for such an exercise is changing quickly in Thailand and Malaysia might be next.

[physdude]

The trick is to apply before ER so that you have the income to show. So one can do it on as little as 200k USD provided you plan ahead.

The last provision is purchasing health insurance which is good practice anyway. Good high deductible insurance (RM 20k deductible) is about US$100 per month though you can get away for half that amount with less coverage.

Oops, that should be RM 100 per month or about US$25 per month. Good zero deductible insurance is about US$100 per month.

[physdude]

@ Jacob: These Visas generally require a pension or similar annuity (or a trust with a guaranteed payout setup by an attorney). Simply having assets and relying on market returns is not sufficient. When you include Trusts then it becomes ER friendly, but perhaps too aggressive for ERE.

I can only speak for the MM2H program but it only requires you to verify the income for a few months at the time of application via salary slips and bank statements. The visa is then provided until the expiry of your passport or 10 years, whichever is shorter. Once you reach 50, the income requirement is dropped for renewal and one can even work part time in Malaysia (this is strictly forbidden before 50). A fixed deposit of RM 300k is also needed to get the visa but the interest on this can be withdrawn annually and any Malaysian bank (including Malaysian branches of foreign banks like Citibank, HSBC etc) can be chosen for this purpose.

They also have an unusual scheme where you can open a 5 year fixed deposit of US$2 million in any Malaysian bank to obtain instant permanent residence but I have to seriously wonder if anyone has ever taken it up. In one sense, it actually costs nothing as you get a normal interest rate on the 2 million which is pretty safe and which you get back after 5 years. OTOH, that is an insane amount of money to tie up even if you are pretty wealthy and you could retire pretty much anywhere comfortably if you had 2 million to spare.