SMM2H Fixed Deposit Withdrawal: Rules, Limits & Requirements

One of the key requirements under the Sarawak-Malaysia My Second Home (SMM2H) programme is placing a fixed deposit (FD) in a local Malaysian bank. You’ve navigated the initial application, received your visa, and successfully placed your Fixed Deposit (FD) in a local bank.

"How and when can you withdraw the fixed deposit?" The good news is that the program is designed with flexibility in mind, allowing you to access funds to support your lifestyle within the state.

Essential conditions for SMM2H fixed deposit withdrawal

1. Minimum One-Year Holding Period

   You are eligible to apply for a partial withdrawal only after you have maintained the fixed deposit for at least one full year in the program, calculated from the date of issue stated on the visa sticker.

   
   

2. Maximum Withdrawal Limit of 50%

   You can withdraw a maximum of 50% of your total fixed deposit amount. The remaining balance must continue to be maintained in the bank account in order to comply with S-MM2H visa requirements throughout your stay in Sarawak.

Approved Reasons for Withdrawal

The Sarawak government permits withdrawals for four specific categories that contribute to your long-term settlement in the state:

• Property Acquisition: Purchasing a residential house specifically within Sarawak. This is a common choice for those looking to establish a permanent home.

• Transportation: Buying a car locally to improve convenience for your family or retirement lifestyle.

• Healthcare: Covering medical expenses, hospitalization, or related treatments incurred within Sarawak, supported by proper documentation.

• Education: Funding school fees or tuition-related costs for your children at local or international schools in Sarawak.

  
  

Documentation Checklist

To apply for a withdrawal, Rafflesia SMM2H will submit your application to the Ministry of Tourism, Creative Industry and Performing Arts Sarawak (MTCP). Staying organized is key to a seamless approval process. We will need the following documents:

• Letter of Intent: A formal letter stating your desire and reason to withdraw the funds.

• Conditional Approval Letter: A copy of your original S-MM2H approval.

• Passport Copies: Include your personal details page and your current multiple-entry visa page.

• Latest FD Statement: This must clearly show the bank’s name, address, and your account number.

• Supporting Evidence: Proof of payment or relevant documents, such as a Sales and Purchase Agreement for a home or an invoice from a school or hospital.

After receiving the approval letter from MTCP, you may visit the bank to withdraw a partial amount from the fixed deposit based on the value stated in your supporting documents.

Important Considerations for Property Buyers

If you plan to use your FD for a home, remember that Sarawak has minimum property value requirements for foreign buyers:

• Kuching Division: Minimum value of RM 600,000.

• Other Divisions: Minimum value of RM 500,000.

As regulations can change, it is vital to verify the latest requirements before making a financial commitment.

SMM2H Fixed Deposit — Up to 50% may be withdrawn for approved expenses such as property, education, medical, and vehicle purchase in Malaysia.

Withdrawing your fixed deposit under the S-MM2H programme can be a relatively smooth and straightforward process when all required documents are properly prepared in advance.

The flexibility to partially withdraw the SMM2H fixed deposit also allows participants to better settle into life in Sarawak. Whether the funds are used for purchasing a home, buying a vehicle, supporting children’s education, or covering medical expenses, the withdrawal option provides practical financial support for comfort long-term lifestyle in Sarawak.