The Prime Minister's Office has clarified that foreigners are allowed to make Malaysia their place of permanent residence under the Malaysia My Second Home (MM2H) scheme.

"Conditions are clearly spelt out for those interested and information on this programme is also publicly available," the PMO said in a statement.

"On property purchased by foreigners, irrespective of nationality, Malaysia imposes certain conditions and information on these existing conditions are publicly available.

"Purchase of properties, however, does not guarantee automatic residency in the country," it added.

The PMO issued the clarification after Prime Minister Dr Mahathir Mohamad caused a stir yesterday when he stated publicly that foreigners are not allowed to purchase property in Forest City, Johor.

The statement, however, made no mention of Mahathir's remarks. 

Forest City is a 13 sq km project on four man-made islands. It is supposed to have 700,000 inhabitants by 2035 and was primarily marketed as a second home project to China's elite.

Meanwhile, the PMO said the government welcomed foreign direct investment which contributed to the transfer of technology, provided employment for locals and the setting up of industries.

On tourists from China, the PMO said all tourists are welcomed as long as the necessary immigration requirements are met.

"In the case of China, tourists are given a single-entry 30-day visa to the country.

“In 2017, Malaysia attracted some 2.3 million Chinese tourists and is looking to attract up to 10 million in the coming years," it added.