spellraj

Hello All,

I am a newbie to the forum having joined few days ago and this is my first post. I am an Indian citizen living in America and looking to retire in Malaysia. We just got my MM2H conditional letter couple weeks ago and are planning to visit KL in may to complete the procedure.

Ther are some great posts in this forum and I want to thank everyone who have spent their valuable time educating others about the process. I just had a few queries about the process.

1. For security bond: the conditional letter was issued in my name, my wife's and son's name. So when filling up the bond, I will be the applicant . So can my wife be the witness or it has to be someone else. Also I am confused, if I need to make any cash payment at MoTAC in favor of the bond or not.

2. Medical checkup: My wife and son are clean without any issues. But I have borderline hypertension, with the numbers swinging between normal and mildly high. I am not even on any medication. Can that be an issue at the checkup? Any one has had any issue with that?

3. I live in michigan in USA, and we dont have any HSBC branches here. I am planning to call them on monday and find out about opening an account on the phone. Not sure if that is possible or not. If am able to open an account, then do I deposit RM300,000 equivalent in dollars(I am below 50 years) in america and then when i go to KL, tell them to change my account to a premier account and transfer the funds to purchase the Fixed Deposit. Am I right? Also how long would it take for them to open an account in KL, and transfer the funds?

4. People suggested to buy a local sim when at the airport. Any suggestions on which company sim to buy? Any special plans?

5. We are planning to come to malaysia for couple of weeks in may for the whole process. Is 2 weeks enough for this?

Thanks in advance for all your suggestions

SushiFan

(ad. 2) The medical check-up is not a real check-up. The doctor will ask you some basic questions, but nothing too complicated. The whole procedure resembles more of a rubber-stamping event than a real check-up. Don't get too worried about this. It will take approximately 10 minutes per person.
(ad. 3) are you sure that you want to use an HSBC account? Not an account at any of the Malaysian banks?
(ad. 4) It depends on how you use your phone: only to make phone calls, or do you also need internet connection for email, messaging, Uber and browsing the internet? Reading this article gives you an impression of the main players and what they offer: https://www.imoney.my/articles/which...an-in-malaysia .

spellraj

Thanks a lot SushiFan for your valuable guidance. The reason for opening an HSBC account was guidance from the experts in the forum, who said that once you open an HSBC account in your own county and then go to malaysia, it is easy to convert it to premier account and get the fixed deposit.

Thnaks for the link for the sim card. I am just to make phone calls and some basic email checking.

Thanks

Gunnar45

Citibank has offices in Malaysia but not so many
https://en.wikipedia.org/wiki/Citibank_(Malaysia)

spellraj

Thanks Gunnar45. Thats why I like the idea suggested in another thread of opening an account with HSBC in USA and when I go to Malaysia, will go to premier center, have the account changed to premier account and then wire transfer the money to my new malaysian account for free.

montakute

Re the security bond, I believe the spouse was indeed the witness when we did it. As I recall, you get the document stamped at the HASIL office. Then you take it to MOTAC when you go to get your visa and you pay MOTAC the money for the bond. In 2014, they stated on their website the forms of payment allowed. Give them a call, they are very helpful.

We did a lot of advance planning and completed everything for our MM2H in KL in 4 days.

We had our HSBC bank account open and fully funded with the money for the MM2H FD before we came to KL. Then, when we were in KL, it was a very simple process for the bank staff to set up the MM2H FD(s). You must be an HSBC Premier customer in your home country to open a bank account remotely. Just a point of interest, HSBC Malaysia cannot provide any investment services in Malaysia to non-Malaysians (except GICs). If you are US Persons, call HSBC in Malaysia and make sure they will open accounts for US Persons.

We also looked into using the Bank of China in Malaysia for our MM2H FD. This was the only other bank, as far as we knew, which would open an account remotely for us in 2014. HSBC was taking forever to open the account in Malaysia (almost 2 months) and it looked like it wasn't going to get done before we left for KL. Bank of China offered a very simple, quick and efficient process, the whole process to open the account took 2 days. I will send you a PM with the contact info for the Bank of China MM2H Specialist in downtown KL. They did not offer online banking services in Malaysia 3 years ago, that may have changed.

Regarding creating a bank account here in Malaysia, accounts for foreigners must be approved through the head office first. This is a somewhat recent change. My experience is this takes a few days currently. You must also figure out how to get your US bank to transfer the funds when you're not in the US. Canadian banks require the account holder to do international wires in person, for example.

You may want to also consider OCBC Malaysia. OCBC has the highest solvency / credit rating in the world, tied with a handful of other banks (3 of which are in Singapore) according to the big-3 (Moodys, S&P, Fitch). Unlike HSBC, OCBC can provide investment services to non-Malaysians. Check to make sure they take US Persons, if applicable. You cannot open an OCBC account in Malaysia remotely.

spellraj

Thanks montakute for such a detailed message. After reading all the previous posts, my understanding was that we open a regular checking account with HSBC in home country, load the account with the FD equivalent amount money (as I am below 50 years, i have to make FD for 300,000 RM) and then when come to malaysia, go to an HSBC branch in malaysia which offerS premier account services and open a premier account in the bank. Then as the malaysian account is premier, we can have them wire the money from original account to the malaysian account and create the FD. Did I get something wrong with this?

As everyone was recommending HSBC, I just opened an HSBC account online here in USA. We dont have an HSBC branch in michigan.

@ montakute- you mentioned that HSBC cant provide investment services to non malaysians. This FD for MM2H, doesnt come under that. Right?

I also want to make sure, I have all my eggs lined up in the basket, so that we can get everything done in the 2 weeks and leave to USA.

Gunnar45

I would based on personal experience recommend CIMB for the day to day, etc affairs in Malaysia.
But that can of course be arranged later when you decide to stay here for longer periods.
They (like HSBC) do provide investment advice and are in my opinion much more customer friendly, both for website and other procedures.
Investments like bonds, funds, etc are available for non-Malaysians but the MM2H FD can't be used for this, it is a separate FD.
By the way, split the mandatory FD into two FD's along the lines what you are allowed to withdraw for permitted purposes like purchase of condo, schooling, etc. That makes things much easier when the need arises.

I have my MM2H FD with HSBC, this because the initial transfer was quite easy and depending on the size of the FD, you qualify for preferred status and if not, you can always top up with an additional FD or other investment.

As CIMB has more offices, it is easier to have 'your bank man' nearby. As a preferred customer with them you also get airport lounge access in most airports in SE Asia!

I would further recommend to open the accounts in the city where you will be living and if available in the area where you will stay.

spellraj

Thanks Gunnar45 for the message. I am opening the HSBC account only for the fixed deposit. Thanks for your advice of splitting the deposit. As I am below 50 years, my fixed deposit requirement is 300,000 RM and hence I should qualify for the premier account. Once I open the premier account in Malaysia, I should be able to wire transfer the money from American HSBC to Malaysian HSBC account for free. Is it correct?

For regular banking needs, I can always open an account later.

Gunnar45

One more thing, if you are applying joint with yur wife, also look at opening a joint account for the MM2H FD. (I do not know if this is allowed though but the bank should know)
This then gives you both the preferred customer status.
At CIMB the joint preferred status is important with regard to the airport lounge passes.

SushiFan

I am not an HSBC customer. But my understanding from discussions on this forum is that you need to be a Premier customer in your home country (USA in your case?) before you can become Premier customer in Malaysia. montakute states the same. How much do you need to fund in your HSBC USA account to become a Premier customer in the USA? Are the requirements in the USA higher than the equivalent of RM 300,000?

For my day-to-day banking needs in Malaysia am I using CIMB. I like their online banking tools, their iPad app, and that they have ATMs just about everywhere in Malaysia.

Davita

Spellraj...your information regarding HSBC is spot on.
You can open an account in USA and keep the amount there, then, when arriving in Malaysia with your conditional letter, open an account in KL.
You can immediately transfer the amount required into that account and set up the FD's for MM2H. Follow Gunner's advice to split the FD's and open as a joint account. Another tip is to advise the interest from the FD's to be deposited in your current account...so you can access that money.
Your amount in FD's will qualify you for Premier status in that account in KL, which gives you world-wide status, including your account in USA. Just get the KL branch to advise the USA branch of your new status.
I did exactly that some years ago...but have since given up MM2H, had the FD's refunded and HSBC KL canceled, as I've no future use.
My Premier status is now maintained with an FD with HSBC Jakarta.

spellraj

Thanks all for your valuable advice.

@Gunnar: I will check with HSBC bank, if it is possible to put my wife name on the FD. I think it is a great idea, so that in case something happens to me, she has access to the money. I am planning to call a HSBC bank in kl this week and talk to a manager. If I am successful will check with them.

@Sushifan: The balance required in USA to become a premier member is 100000 USD, which is almost 450000 RM. From reading the old posts, my understanding was that , you dont have to be a premier member in your home country. Once you go to malaysia and open an account there, you can fund the acount and then become a premier member. I will check with the HSBC manager about this also.

@Davita: Is it okay to ask you, why you gave up MM2H and move to Indonesia? Things you did not like about MM2H or malaysia in general?

Also one general question which comes to my mind, once you create an fd in the principal applicant name, do you designate your wife and son as a benficiary? Is there an option to do that? Just curious in case something happens to the principal applicant, want to make sure, there is no issue with the wife and kid getting the money.

Thanks

Gunnar45

Any jointly held accounts in MY (and also in SG), regardless of if the account conditions state 'either one has full access', will be blocked by the bank until the estate has been properly cleared.
The bank will however only block the accounts after it officially has received the notification of death. Which gives some room for emergency actions.

To be prepared and also to speed up the process in case one passes away it is best to have wills written, a lawyer charges RM 500:- per will.
Without a will this applies:
The Malaysian Bar - Non-Muslim Inheritance Law

Furthermore, in a will I think one can allocate the estate freely, without mandatory parts to children and spouse, etc.

Once a premier member in MY you are a premier member also in other countries.

spellraj

Thanks Gunnar45 for that useful link and enlightening on the law and inheritance rules in Malaysia. Will definately get a will once we move to malaysia.

So my plan of opening an account in HSBC bank in America, funding it with the required money and then opening a premier account in Malaysia and creating split fixed deposit, sound like the right thing? Correct.

Thanks