Foreign property buyers welcomed, but no automatic residency, says Johor MB

KUALA LUMPUR (Aug 30): The Johor administration has explained that it does not “discriminate against or segregate foreign property buyers according to regions or countries of origin” but they are subject to rules and regulations when buying residential property in Iskandar Malaysia, The Star reported today.

Menteri Besar of Johor Datuk Osman Sapian also said there is no automatic granting of residency if foreigners buy property in Johor.

“There is probably some confusion lately, and we need to clarify that foreigners will not get Malaysian residency when buying property in Johor,” the English daily reported Osman saying today.

He said that Singaporeans have been buying properties in Johor for many years but they still did not get Malaysian residency status or citizenships.

Osman went on to say that the threshold pricing of RM1 million for foreigners may even be increased -- “In future, we might increase the ceiling price to RM2 million.”

He also revealed that he will be part of the committee to be set up to study the issue of foreign buyers.

The committee will be chaired by Housing and Local Government Minister Zuraida Kamaruddin.

On Aug 27, Prime Minister Tun Dr Mahathir said Malaysia will not allow foreigners to buy residential units in the Forest City project in Johor.

"One thing is certain, that city that is going to be built cannot be sold to foreigners."   

"Our objection is because it was built for foreigners, not built for Malaysians. Most Malaysians are unable to buy those flats," Dr Mahathir said.

The Prime Minister's Office later clarified that Malaysia imposes certain conditions on properties purchased by foreigners and information on these conditions are publicly available.

“Purchase of properties however, does not guarantee automatic residency in the country,” it said.

It also stressed that foreigners who wish to reside in Malaysia need to apply for permanent residency through the Malaysia My Second Home program.