Mad Hatter

Yeah that's was my reading also that under MM2H all income derived outside Malaysia is not taxed. I guess the ony question is what about money made trading while in Malaysia. I have the same question myself. Will the IRS 911 rule apply exempting taxes on the first $95K if generated in Malaysia and how would Malaysia treat that income.

When I hear money laundering in Malaysia, I think it's because Malaysia is a center of Islamic Banking and many of the funds that were used to fund the 911 attacks on the US were banked in Malaysia or at least that's what I was told.

Davita

I'm not American (Canadian actually) but have some knowledge of the US system as I lived in Arizona for many years.
My understanding is sect. 911 to the IRS code is available to all USA CITIZENS that live outside of the USA.
Therefore, I suspect that any gains from investing in the Malaysian market would be taxed in Malaysia and the first US$95,000 gain would be exempt when filing in the USA.
Therefore I do not think it prudent to invest in the Malaysian market...(try the Hang Seng Market (Hong Kong) gains where Capital Gains are not taxed...at least not when I lived there, but you need to double-check)
Any gains would be exempt in Malaysia, if an MM2H holder, and sect.911 rule would exempt tax on the first US$95,000 gain, in the USA.

Davita

I apologise to madhatter as I thought my last post was responding to greygoose.
Nevertheless, my posts are for all to read.
MH..... you claim that Malaysia is a money-laundering society but say "what I heard".
What and where did you hear that Malaysia is the center of Islamic banking?
To me it makes no sense as Malaysia has a population of nearly 30 million. Indonesia, where I reside, is predominately Muslim and has a population of around 240 million...give or take a few refugees waiting to NEVER go to Australia according to PM Rudd's latest edict. There are sharia banks everywhere on this planet. Are you aware there are more Muslims in China than the whole population of Saudi?
I don't want to offend anyone but, having lived in Malaya/Singapore/Hong Kong since the mid 50's and now retired (76 y/o) in Bali.... may I offer this advice...... a foreigner living in Asia takes the good with the frustrating...if you don't like the temperature/politics/tax/language/food/education/pavements.......better stay home and be cozy.

Mad Hatter

Davita,

I was responding to a previous emai about banking in Malaysia that another poster had made. I commented factually that Malaysia is a center of Islamic Finance. http://en.wikipedia.org/wiki/Interna...slamic_Finance I understand this through working in the Middle East and what Arabs have told me. Indonesia, though much larger , does not have near the banking industry as Malaysia. I made no comment or insinuation about whether I considered Islamic banking a good or bad thing...imo it's neither, it's based on Islamic values and Sharia Law. I did hear from people that I respect who are Arab Muslims that Malaysia will not be a target for terrorism becasue of the Arab Gulf money stored there. I don't know this to be true but I've never heard of a major incident in Malaysia like you have had in Indonesia and particularly Bali.

Now I have read some of your posts about Jakarta & Bali and I would like to visit those places sometime to see if I would possibly enjoy living there. Bali in particular seems very nice. I'm approaching mid-50's so I'm in the looking stage. I like Thailand and Malaysia, and some areas of PI, but haven't been to Indonesia yet. I realize there are pros and cons to every place.

I do appreciate the valuable information from those on the location like yourself and I really want to see Bali. My biggest problem is overanalysis but I'm just not a frivolous decision person.

Davita

QUOTE... I did hear from people that I respect who are Arab Muslims that Malaysia will not be a target for terrorism becasue of the Arab Gulf money stored there.....UNQUOTE

I knew there was a good reason to maintain my MM2H Visa...One more pub being bombed in Bali and I'm heading straight to Penang!!!

Changing the subject a little.....Indonesia is great place to visit, due to its diversity, but not as good to live as the long-term visa is much harder to get than Malaysia.

kebi

Another Newbie who has to admit that he did not read all pages but started with Invinoveritas who had a lot of interesting questions about why Malaysia.

I live here now for more than 20 years after I realized that Thailand is not “healthy” for a small investor. In my opinion you are welcome to spend money, but not to make some.

Anyhow before moving to Malaysia I drove down the east coast, up the west coast with some detours through KL, Cameron Highlands and Ipoh. I decided to settle in Penang for the following reasons: island and beach (although Phuket beaches have been nicer), great variation of food, urban but not as hectic as KL, good hospitals and intern. schools (for my kids) and very important I could communicate without any problems and learnt that you can even apply in court that the session is in English (you never know).

Penang has changed a lot since than but I still love it and never regretted. Just as a short episode: 4 years ago and old friend (by age and time) visited me again after 20 years. During his stay he was always walking around shaking his head and mumbling “unbelievable, so cheap, and so good and the weather…” Within two years he sold his company, applied for MM2H and lives now in Penang telling me all the time this was his best decision.

Coming back to some questions of Invinoveritas which I think (or over-read) have not been fully answered.

Where to settle? For sure everybody has her/his own preferences and the best way to find out is to visit the places. If you think you need good hospitals nearby, shopping centers to buy wine and cheese and other western stuff it can be only KL, Penang or maybe Ipoh.

Generally Malaysia and Malaysian are quite tolerant regarding religion. In some areas it might be difficult to find pork, alcoholic drinks and daytime eateries during Ramadan. There are no difficulties in Penang, KL and Ipoh.

If you intend to buy property it is always a good idea to rent first and look around. Landed property will have a disadvantage for a part-time resident, because one will need a gardener, pool attendant, maid to clean and you won’t know how they will make use of your property. Additionally condos have usually security which makes a place safer. The biggest advantage of a condo above the 10th floor will be the steady breeze and no mosquitos.

As mentioned already above the choice of food is incredible in Malaysia whereby Penang has the reputation of food heaven. It can be Indian, Malays, Thai, Korean… The only thing what I miss in Penang is “fine Dining”. Some hotels and restaurants claim they offer it but for the real stuff you need to go to KL, Bangkok or Koh Samui.

International TV can be watched in the major cities via internet with a speed between 4 and 16 megabyte.

Universities are quite keen to engage expat lectures but for a local salary. No problem if daddy… My children went to an intern. School in Penang and did quite well when they returned to Germany.

Now it’s out – you sure have noticed already earlier I’m not British, but hope you don’t mind to read my (German) expat experience.

kebi

Something I forgot about Penang. It is also a good place to make new friends by joining one of the 3 big clubs, the Alliance Françaises or the Malaysian-German Society (MGS), both of them organizing many social and cultural events and the MGS is famous for the biggest Oktoberfest in Malaysia.

geedee

"Now it’s out – you sure have noticed already earlier I’m not British, but hope you don’t mind to read my (German) expat experience."

Your English is better than mine. Nice to read positive posts... I'm moving here and have seen quite a bit of the place the last 4 weeks... I'm impressed. People are nice, scenery beautiful.... and it doesn't have the sleaze factor of other places!

bakedbean

Hi Kebi and welcome to the forum . That's a great first post and I think I agree with almost everything you say. I feel like a Penang newbie compared with you as I am only just into my 4th year here. I too tried Phuket and couldn't settle there.

Germans and other nationalities are most welcome on here . Despite the britishexpats name, there are quite a lot of different nationalities on here.

If it's not too nosey a question, which part of Penang do you live? I'm in Tanjung Tokong.

bakedbean

A friend was telling me about an Irish Association too. They seem to hold a lot of events.

There's so many other clubs to join too depending on what your interests are.

kebi

Thank you for the warm welcome (and the compliment)!

Sorry that I forgot the Irish and yes for sure they are very active and also organize a great ball every year. And since we are with the Irish and I’m also living in Tanjong Tokong - there is my regular nearby watering hole – I don’t know if I’m allowed to advertise with a name.

bakedbean

Healy Macs? We pop in there occasionally.

kebi

You named it.
Ask the staff (Richard is on holiday) when you are there - most of them know me by the name Karl. On the way now - thursty.

bakedbean

Haha. Ok....next time we are in there with chums I'll look out for you

rusty747

Just heard back from Yvonne at Joystay - my MM2H agent. Conditional approval has been granted and I have 6 months to complete the remaining admin - Fixed Deposit, Medical, Health Insurance etc. we will be travelling to Penang in September via a few days in KL to complete the formalities.

From submission of papers to conditional approval was exactly 4 weeks. Happy days!