A growing number of Chinese nationals are settling in Malaysia through the Malaysia My Second Home (MM2H) programme, reigniting debates about the impact of this influx on race relations and politics. As of December 2024, Chinese nationals made up 45% of MM2H participants, with many seeking retirement, education, and investment opportunities. Between September 2024 and January 2025, 53% of new applicants were from China.
Critics have raised concerns over the effects of this migration, especially on the property sector, as developers focus on luxury housing for foreign buyers rather than affordable options for locals.
There are also fears about demographic changes and the challenges of integrating large numbers of Chinese migrants.
Former Prime Minister Dr. Mahathir Mohamad expressed concerns that the large presence of Chinese migrants made it difficult to differentiate them from local citizens, complicating efforts to monitor immigration. Critics are also worried about the social and cultural challenges posed by this trend, with lessons drawn from neighbouring countries like Singapore and Thailand.
The number of Chinese nationals living in Malaysia has surged, with an estimated 200,000 Chinese migrants in the country by 2024, up from 82,000 in 2022.
The education sector has seen a 35% increase in Chinese students at universities and a tripling of enrolment in international schools.
In Penang, the presence of Chinese nationals is particularly evident, with a rise in Chinese-owned businesses and an influx of Chinese students. Local communities are adjusting, but concerns remain about the long-term impact.
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