Journal of Business and Social Development ISSN: 2289-2915

Volume 6 Number 1, March 2018: 130-148 © Penerbit UMT

AN ANALYSIS OF PUSH AND PULL FACTORS MOTIVATING EXPATRIATE

MIGRANTS TO CONTEMPLATE MALAYSIA AS THEIR SECOND HOME:
A CONCEPTUAL PAPER
(KAJIAN TERHADAP FAKTOR-FAKTOR TOLAKAN DAN TARIKAN YANG
MENDORONG EKSPATRIAT MEMILIH MALAYSIA SEBAGAI RUMAH KEDUA:
SATU KERTAS KONSEP)
RAMYA RANEE KONNA SEGARAN* AND SOFRI YAHYA
Graduate School of Business, Universiti Sains Malaysia, Pulau Pinang, Malaysia.

*Corresponding author: rranee007@gmail.com

Abstract: In recent times, the government has promoted Malaysia My Second Home
(MM2H) program to attract foreigners of all background to choose Malaysia as their second
home. The present study is intended to analyze the expatriate preferences to participate in
MM2H. The objectives were to examine and find the relationship between push and pull
factors associated with the intention of selecting Malaysia as the second home destination.
The study also proposed to examine the moderating effect of the relationship between the
independent variables and the dependent variable of interest. The proposed push factors
that motivate them to leave their home country include high cost of living, social problems,
ecological problems, health hazards, natural disasters and poor safety and security. On
the contrary, the proposed pull factors that make Malaysia a suitable second home option
include economic environment, tourist attractions, social and cultural environment, safety
and security, political stability and relaxing retirement life. These push and pull factors
were identified from a comprehensive literature review and expert opinions and the push
and pull factors were conceptualized and a business research model was proposed. Suitable
propositions were developed to test the cause and effect relationship between the push
and pull factors on the intentions to consider Malaysia as a second home destination.
Additionally, laws and regulations may serve as a proposed moderating variable for this
investigation of the relationship between the push and pull factors on the intentions to
consider Malaysia as a second home.

Keywords: Expatriates, Malaysia My Second Home (MM2H), push and pull factors,
expatriates motivation business model.

Abstrak: Sejak kebelakangan ini, kerajaan telah mempromosikan program Malaysia

Rumah Keduaku (MM2H) untuk menarik warga asing dari semua latar belakang untuk
memilih Malaysia sebagai rumah kedua mereka. Kajian ini bertujuan untuk menganalisis
keutamaan ekspatriat untuk menyertai MM2H. Objektif kajian adalah untuk mengkaji dan
mencari hubungan antara faktor-faktor tarikan dan tolakan yang dikaitkan dengan tujuan
memilih Malaysia sebagai destinasi rumah kedua dan kajian ini juga mencadangkan untuk
mengkaji kesan moderator antara pembolehubah bebas dan pembolehubah yang bersandar.
Faktor-faktor tolakan yang dicadangkan mendorong mereka untuk meninggalkan negara
mereka termasuk kos sara hidup yang tinggi, masalah sosial, masalah ekologi, isu-isu
memudaratkan kesihatan, bencana alam dan faktor keselamatan yang lemah. Sebaliknya,
faktor tarikan yang dicadangkan untuk ekspatriat menjadikan Malaysia sebagai pilihan
rumah kedua yang sesuai termasuk persekitaran ekonomi yang stabil, tempat pelancongan
yang menarik, aspek sosial dan budaya, keselamatan, kestabilan politik dan kehidupan
persaraan yang selesa. Faktor-faktor tolakan dan tarikan ini telah dikenal pasti dari
tinjauan literatur komprehensif dan pendapat daripada pakar dalam bidang kajian ini
dan faktor-faktor ini telah dikonseptualisasikan lalu model penyelidikan perniagaan
telah dicadangkan. Di samping itu, undang-undang dan peraturan dibentangkan sebagai
moderator penyiasatan di antara faktor tolakan dan tarikan dalam menimbangkan
Malaysia sebagai rumah kedua oleh ekspatriat.

Kata kunci: Ekspatriat, Malaysia Rumah Keduaku (MM2H), faktor tolakan dan tarikan,
model bisnes pendorong ekspatriat.
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 AN ANALYSIS OF PUSH AND PULL FACTORS MOTIVATING EXPATRIATE MIGRANTS 131
Introduction
Lifestyle can be described as a way of life and
has been evolving from time to time and across
various regions. In the traditional era, people
live and move close to their own localities,
mainly due to the absence of technology and
transportation. However due to the rapid
development of transportation and technology
and its accessibility, world tourism has gained
importance in people’s lives. This created an
interest in the people to visit foreign locations,
live abroad and it has even become a lifestyle
today. Tourism is more than the traditional
movement of people from one destination to
another. It is not merely providing a site for
entertainment and leisure, but also plays an
acute role in many economies. This significant
role can be measured in terms of gross domestic
product (GDP) that has contributed towards
development. There are several countries that
gain a large proportion of their gross earnings
mainly from tourism. Tourism can serve
as a main sources of income for economic
development, stimulate the development
process, restore the cultural heritage and help to
maintain international peace and understanding
(United Nation, 2009).
Second home ownership is taking tourism
on a larger scale. Immigrants who travel abroad
are fascinated by the new world and decide to
make it as their second home country. Over the
past few years, second home ownership has
not received much academic attention due to
disagreements over whether second home owners
should be regarded as tourists or otherwise
(Muller, 2006). Nevertheless, second home
ownership increased between 1960s and 1970s
especially in the European and Scandinavian
countries. The reasons for this might be due to
an increase in the wealth, income, mobility and
the availability of long term tourism (Muller,
2006). Several researches examined this concept
of second home ownership from a Western
perspectives (Balkir & Kirkulak, 2007; Breuer,
2005; Casado-Diaz, Kaiser & Warnes, 2004;
William, King & Warnes, 2000). The subject has
also been studied from an Asian perspectives,
but the focus and perspectives of the studies
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075.indd 131
were varied and comparison between them
cannot be performed. Ono (2008) and Wong
& Musa (2014) studied the concept of second
home ownership in Malaysia, where the former
focused on Japanese nationals and retirees, while
the latter examined retiree motivations from the
perspectives of multiple nationalities. Howard
(2008) and Kummaraka & Jutaporn (2011)
explored Western retiree motivations to choose
the country Thailand as their second home. The
increasing pool of human migration has spurred
the growth of international long term tourism
(Williams et al., 1997; Williams, King, Warnes
& Patterson, 2000). This had been investigated in
Europe (Williams, King & Warnes, 1997), Japan
(Jones, 2008; Miyazaki; 2008) and many other
developed countries (United Nations, 2016).
The results were similar in these studies where
a strong positive relation was demonstrated
between an increase in migration and growth of
long term tourism. It was also significant that
the ownership of second homes by this group
of people has become a growing phenomenon
and has likely been the result of such a move
(Muller, 2002).
In the context of this research, a second
home is defined by the properties subject to
certain conditions such as minimum length
of occupancy and proof of possession of
documents of the second residence (De Wilde,
1969). Basically, scholars were likely to agree
that second home ownership is a reflection of
the people’s excessive capital and desire to
move on to more encouraging nations. Based on
the exposure and experience received from these
nations, the move could be permanent. This is
such a lucrative market segment which continues
to inspire several nations due to the advantages
and growth it brings. Inspired by the benefits
of this programme, the Malaysian government
launched the Silver Hair Programme in 1996
(Ono, 2008). This Silver Hair Programme was
later renamed as the Malaysia My Second Home
(MM2H) Programme. The MM2H Programme
basically allows overseas seniors aged 50 and
above who satisfy certain criteria to stay in
Malaysia with a multiple-entry social pass
that stays valid for a period of 10 years. The
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 Ramya Ranee Konna Segaran and Sofri Yahya 132

MM2H Program underwent minor changes in
terms of matter and custodianship. A significant
milestone in 2002 occurred with the modification
of the MM2H when high net worth individuals
below the age of 50 were permitted to apply for
the programme (Wong & Musa, 2014). Until
now, official statistics indicate that over 32,737
foreign individuals have joined the programme.
Nevertheless, this apparent success of a popular
subject among immigrants of various nations
has not been the subject of sufficient scholarly
research and therefore, the curiosity motivated
the present research.
This study concentrates on the Malaysia My
Second Home Programme because Malaysia
is one of the preferred locations in South East
Asia in terms of retirement. Malaysia is ranked
sixth best place to retire in the Annual Global
Retirement Index, compiled by the expert at
International Living (IL), edging out the likes of
Purtugal, Nicaragua and Spain (Forbes, 2017)
and the survey conducted by the International
Living magazine ranked Malaysia as the
fourth nation in the 2012 Retirement Index
after Ecuador, Panama and Mexico. MM2H
Programme was also promoted with Malaysia
being picked as one among the 18 best retirement
destinations for Americans. This study was
conducted by Kathleen Peddicord, the founder
of the Live and Invest Overseas publishing
group and the world’s notable expert on overseas
retirement. Malaysia gains a competitive edge
due to the mention that it is Asia’s Panama,
a global hub for trade, business and culture
with an affordable cost of living (New Straits
Times, 2012). Retirees from various parts of the
world react differently when they choose their
immigration destination. An extensive literature
review has indicated that expatriates are
heterogeneous about how they react to internal
and external stimuli for international migration.
Destination countries undoubtedly have a strong
bearing in the decision making process. There
are two currents which underlie this decision of
immigration. One can be called as the push factors
which motivate a person to leave the home land
while the other can be termed as the pull factors
which the person perceives as encouraging
and attractive for life. The push factors which
motivate foreigners to leave a country can
include high cost of living, health hazards, poor

Table 1: MM2H Participant Approvals from 2002-2016

No. of Participants Total No. of Participants Approved

Year
Approved (Accumalitive) Y-0-Y Change (%)
2002 818 818 -
2003 1645 2463 101.1
2004 1917 4380 16.5
2005 2615 6995 36.4
2006 1729 8724 -33.9
2007 1503 10227 -13.1
2008 1512 11739 0.6
2009 1578 13317 4.4
2010 1499 14816 -5.0
2011 2387 17203 59.2
2012 3227 20430 35.2
2013 3675 24105 13.9
2014 3074 27179 -16.4
2015 2211 29390 -28.1
2016 3347 32737 51.4
Source: Ministry of Tourism Malaysia, Malaysia My Second Home Centre (2016)

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 AN ANALYSIS OF PUSH AND PULL FACTORS MOTIVATING EXPATRIATE MIGRANTS 133

health care, social problems, natural disaster,
ecological problem and poor safety and security.
The factors which pull people towards Malaysia
were a secure economic environment, a safer
atmosphere, political security, future prospects,
better healthcare, standard of living as well as
peaceful and comfortable locations. These were
the preferred factors to spend the retirement
period after the struggles of much hard work
in their main land nations. The possible push
and pull factors were identified from critical
review of literature and expert opinions and will
be employed in the pilot study in this research.
One of the strong pull factors for the migration
would be the ability to purchase and own a home
in the second home nation. Some countries have
imposed rules and regulations to limit or prevent
property investment by foreigners. This is vital
and hence, the expat searches for a country
that gives good facilities and legal rights for a
foreigner to purchase one or more properties.
The second home ownership market in
Malaysia has noteworthy potential to enhance
property development, economic growth in
addition to the tourist industry. The government
of Malaysia has been aspiring to gain
economic benefits from the second home
practices mainly by the introduction of the
MM2H Programme (Wee, 2006). Table 1
Table 2: Volume of foreigner transaction according to the states (2002-2012)
shows the number of approvals that was granted
from 2002-2016 on the Malaysia My Second
Home (MM2H) Programme. The number of
participants in the MM2H Programme was
found to gradually increase from 2002 to 2005
but it dropped between 2006 and 2007. The
number of participants slightly increased in
the next two consecutive years, but again it fell
in 2010. The demand of staying in Malaysia
gradually increased once again between 2011
until 2013. Although, the trend of the number
of participants seeking MM2H approval had
been with crests and troughs, the demand has
been steadily falling since 2013 onwards.
However, this is a major cause of concern for
the government initiative which is the MM2H
Programme and it also indirectly affects the
revenue of the country.
The Ministry of Tourism in Malaysia
plays a major role in increasing the revenue
through the short-term and long-term tourists
and those under the MM2H Programme. Not
surprisingly, the revenue generated or the
foreigners settling down in Malaysia did not
choose the states in Malaysia uniformly. There
were very selective towards particular states
based on the development index, environment,
and tourist attractions and so on. Table 2
shows the transaction volume of foreigners

State Transaction Volume Percentage (%)

Johor 1,888 14.41
Kedah 185 1.41
Kuala Lumpur 5,717 43.62
Melaka 184 1.4
Negeri Sembilan 153 1.17
Pahang 91 0.69
Perak 107 0.82
Pulau Pinang 1,568 11.96
Sabah 413 3.15
Sarawak 146 1.11
Selangor 2,571 19.62
Terengganu 4 0.03
WP Labuan 12 0.09
WP Putrajaya 67 0.51
Total 13,106 100.0
Source: NAPIC, Valuation and Property Service Department, Ministry of Finance (2013)

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 Ramya Ranee Konna Segaran and Sofri Yahya 134
classified by the various states in Malaysia
for a period of 10 years from 2002 to 2012.
The capital of Malaysia, Kuala Lumpur was
found to have the highest transaction volume at
43.62%, followed by Selangor, Johor and Pulau
Pinang. Conversely, the other states such as
Perak, Pahang, WP Labuan, WP Putrajaya and
Terengganu had a very low transaction volume
around merely 1.00%.
The MM2H Programme has been highly
successful in Malaysia, compared to the
other countries mainly due to the negligible
restrictions in purchasing a property in Malaysia
by the foreigners. Only selected states in
Malaysia contributed to the transaction volume
of foreigners and expatriates. Strikingly,
foreigners purchasing properties in Malaysia
highly favored only one type of residential unit
which is the condominium apartments. All the
other types of residential units such as semi-
detached houses, terraced houses and so on were
least favored by the foreigners as shown in Table
3.
The MM2H Programme’s directive for
house purchases was the main expected
outcome towards second homes from foreign
countries. Malaysia needs to be cautious of
the strategic plans and objectives as it has to
compete with the neighbouring countries such
as Myanmar, Indonesia and Philippines which
are rising fast as well. In order to maintain
Table 3: Transaction volume by the type of residential units (2002-2012)
Types of Residential Transaction Volume
1-1 ½ storey semi-detached 63
1-1 ½ storey terraced 89
2-2 ½ storey semi-detached 840
2-2 ½ storey semi-terraced 1,710
Cluster house 104
Condominium apartment 8,606
Detached 860
Townhouse 211
Vacant plot 519
Flat 70
Others 34
Total 13,106
Source: NAPIC, Valuation and Property Service Department, Ministry of Finance (2013)
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075.indd 134
its competitive positioning, the Swhengtee
Property World Tour introduced Malaysia’s
true potentiality as a property investment
destination in Southeast Asia. This was also
supported by an international property specialist
from International Real Estate Investors (REI)
Club (2013) who has noted that the authorities
from Iskandar, Greater Kuala Lumpur (KL),
Penang and Kota Kinabalu have been trying
their greatest to secure overseas ventures. By
these means, Malaysia has already shown to the
world that it is the best choice for property and
investment especially in terms of its open policy
by inviting foreigners to share the economic
growth as well as to maintain the growth of the
country.
Nevertheless, Malaysia has plans to
transform Greater KL into one of the best
20 liveable metropolis internationally with
tremendous economic growth. It is also worth to
note that the International Real Estate Investors
(REI) Club (2013) along with Germany and
Japan have identified Greater KL as the finest
investment prospect in Southeast Asia. The pent-
up demand has been strong in the property market
of Malaysia and it is on its way to become one of
the most active in Southeast Asia with the prices
soaring upwards. As prices increase higher and
higher, the economy and extension of the real
estate market is sure to boom in the near future.
This makes it necessary for the government to
provide better policies and incentives to enhance
Percentage (%)
0.48
0.68
6.41
13.05
0.79
65.66
6.56
1.61
3.96
0.53
0.26
100.00
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 AN ANALYSIS OF PUSH AND PULL FACTORS MOTIVATING EXPATRIATE MIGRANTS 135

the status of Malaysia to become a world class procedures to improve the quality of the MM2H
city in a short span of time. Programme.
The MM2H Programme has made
Problem Statement and GAP Analysis significant impact in the property market of
Malaysia. The property market is opened to
Since the year when the MM2H launched
immigrants, foreigners, retirees and businesses
in 2002, the MM2H scheme seems to enjoy
as well as leisure travellers. Therefore, the
a modest volume of success, having in the
MM2H programme highly encourages the
meantime undergone further fine-tuning and
immigrants and the local developers to invest
changes in anticipation of drawing even more
in Malaysia property market alike. According
applicants to the programme. Historically,
to Davinson (2013), 83% of the expatriates
the government of Malaysia offered a Silver
(including the MM2H participants) spent
Hair Programme in 1996, which estimated to
an average of RM830,000 on property
attract around 100,000 expatriates to settle in
in Malaysia. With the success of foreign
Malaysia by 2010. The Ministry of Tourism has
investment and foreign interest in Malaysia
reviewed and restructured the rules, conditions,
property, Malaysia is globally recognized and
policies and also the restrictions of the MM2H
MM2H Programme will be promoted, with the
Programme (previously known as Silver Hair
initiative of Malaysian government to exempt
Programme). Hitherto, the statistics of Malaysia
Foreign Investment of Committee (FIC) rules
My Second Home (2016) reveals that only 32,737
on MM2H participants and also to introduce
participants have been approved under MM2H.
other initiatives to attract more foreigners
The expected numbers were not achieved by the
to come to Malaysia (Saidon, 2006). Some
MM2H Programme and it has only enjoyed a
of the challenges and issues identified are
moderate level of success since its inception in
from the aspect of design and construction of
2002. The potential problems may arise is firstly
home. It was noted that very limited property
due to deficiencies in marketing strategies;
development schemes were specially planned
Malaysia may be said to be lacking in terms
to fit the demand profile of potential buyers in
of intense destination branding strategies. As
the MM2H category. Most numbers of property
there is close competition between the countries
developer design houses to cater primarily to
in Southeast Asia with similar programmes
the group of local buyers’ demands and with
as MM2H, effective marketing strategies and
the bulk of MM2H participants entering the
plan is deemed essential and plays as a first
real estate market as coincidental ‘overlap’
tool in creating brand awareness globally.
purchasers of existent property designed to
Secondly, the information gaps between the
the local market demand. The potential settler
government agencies and private enterprises
of MM2H participants may vary greatly in
have to be improved. The miscommunication of
needs and requirements, factors of personal
information-sharing leads to information lapses,
preferences and selections play high influence
mainly in keeping the private agencies informed
on the decision of MM2H participants to choose
of the latest developments and implementation
their ideal home in Malaysia. It is recommended
of MM2H Programme. Collaboration between
that the government of Malaysia should offer
the government agencies and key players in
policies and procedures in guiding the property
private enterprise is crucial in order to craft a
purchase in order to be able to reap the higher
better marketing and branding strategy which
benefits.
leads to a mutual sharing of information and
strategy. Notwithstanding, it is worthy to figure As a matter of fact the law and policies
out the principal intentions and the pull factors show the existence of gaps and forms issues,
of the expatriates to join the MM2H Programme; the Malaysian government has done a great
these ideas will help to improve the policies and improvement to legalise and lessen many
procedural requirements and criteria for the

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 Ramya Ranee Konna Segaran and Sofri Yahya 136
MM2H Programme, in support of efforts to
make the programme more successful and to
attract a larger pool of qualified applicants
internationally. These include several landmarks
lowering of the criteria pertaining to property
values available for purchase by foreigners
as well as duration of stay permitted on visas
issued to programme participants. Nevertheless,
there is still areas of improvement, for instance,
one of the approval requirements for MM2H's
application is reserve high liquid cash for the
successful applicant process, in contrast, certain
participant possess high-value properties instead
of liquid cash. Perhaps there is a need for a rule
change on this matter where property in lieu
of cash is allowed as collateral in the MM2H
application process. Furthermore, one of the
other challenges currently facing by MM2H
scheme is with the data management system; a
better data management system and databank are
needed as successful participant of the scheme
is hard to retrace and if information gaps exist,
additionally databank would allow the relevant
agencies and authorities to track developing
trends in settlements and could be used as a
benchmark for continuous improvements near
future.
People move from one area to another area
as a response to the socioeconomic changes
within the country. Cross-national migration
also leads to social changes within the nation.
These changes are evident from the social
structure and economic affairs of the local
people. Similarly, this MM2H Programme also
would bring about positive and negative effects
to the participants and the local community and
this should be clearly studied and ideal capacity
of expatriates should be welcomed in the
nation. On the positive side, expatriates help to
improve the business performance and foreign
direct investments (FDI) and developing good
inter-country relations. Expatriates also enable
knowledge transfer and improve business
relations to dominate the international market
(Marja, 2005). Working with an expatriate could
be a motivation for the local employees and it
also helps to improve the relationship between
headquarters of organizations situated at off-
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075.indd 136
shore locations (Mendenhall, 2007). Contrarily,
expatriates experience the cross cultural
adjustment during his or her stay in the host
country. Language barrier is one of the potential
demotivating factors that discourage the
prospective expatriates to participate on MM2H
programme. The appointment of a locally-
based representative or dedicated administrative
agency conversant in the native language of the
participants would go a long way to facilitate
the sale and purchase of property and assist in
many procedures and details associated with
settlement in a foreign country.
An additional concern is the fact that
the MM2H Programme does not foresee
the main push and pull factors triggering the
intention of foreigners to participate in this
programme in either developed or developing
countries. The predominant factor for this
move was found to be satisfaction in residential
expectations (McHugh, Gober & Reid, 1990;
Oh, 2003; Reschovsky, 1990; Sinai, 2001).
Maximum expatriates purchased second homes
for the purpose of retirement, investment or
enjoyment. The location of the researches were
mostly in European countries as they were the
predominant countries to introduce this second
home practice. Hence, naturally Asian counties
conducted fewer studies compared to European
counties as second home industry was still at a
premature stage (The Star Online, 2016). Most
studies merely focused on the impact of second
home and the pull factors. There were rarely any
studies which took into account both the push
and the pull factors associated with the second
home programme. MM2H Programme has an
advanced standing as it has been voted as the
‘Best Retirement Destinations’ in Southeast
Asia and ranked at number 18 in the world
(NSTP, 2012). But in order to improve the
benefits from this programme, this research
helps to analyse the push and the pull factors
influencing the intentions and the expectations
of migrants in the MM2H Programme. It is
important for the government of Malaysia and
the relevant agencies to identify the chief pull
factors for attracting MM2H participants. It is
also necessary to determine the satisfaction
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 AN ANALYSIS OF PUSH AND PULL FACTORS MOTIVATING EXPATRIATE MIGRANTS 137
level of the existing MM2H participants so that
the shortcomings can be identified for further
improvement. This proposed research mainly
identifies four key research gaps, to begin with;
there was insufficient research on the second
home program in Asian countries. The present
research enhances the relevant literature on
most of the key areas with respect to the second
home programme like the ultimate benefits
and the cultural similarities and dissimilarities.
Secondly, the problem identified was that
in spite of mass advertisements, the overall
number of participants in the MM2H Program
was not encouraging. Challenges and issues
in terms of branding and marketing, design
and construction of property, financial matters,
government policies, regulations and procedures
were identified as the main hindrance for this
programme. Frequent changes in the rules
and regulations also lead to confusion among
the participants. This research helps to revive
on the policies and procedures in the MM2H
Program. Thirdly, there were hardly any studies
on supporting the MM2H Program. Hence, this
research also attempts to deliver responses on
the awareness level of the Malaysia My Second
Home Program (MM2H) in different continents
across the world. The study also moves to
determine the factors influencing this migration.
Lastly, the present study was undertaken to
investigate the push and pull factors influencing
the intention to consider the MM2H Program as
their second home program. The push and pull
factors of the expatriates with the stimulation
of external factors such as government policies
and procedures, laws and regulations of the
host country as well as the cultural similarities,
dissimilarities and the ultimate benefits of the
migration were explored in detail.
The primary objectives of this proposed
research were:
1. To investigate the task force which is
influences the expatriates on the attraction
of the MM2H Program.
2. To determine the intentions of the
expatriates residing in Malaysia on their
inclination towards the MM2H Program.
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075.indd 137
3. To analyse the push and pull factors that
influence the plan to consider Malaysia as
their second home destination.
Significance of the Study
This research project strives to make major
contributions to both management theories
and practical applications to the Second Home
programme not only in Malaysia but also
in Association of South East Asian Nations
(ASEAN). The present study is a pioneering
research work to identify the preferences of
the expatriates to consider Malaysia as their
second home and a pioneering research work
on MM2H Program. The motivation factors
for the expatriates to consider their migration
to Malaysia can be completely explored by the
present research. The target population for the
current research included respondents from
Asia, Europe, America and Australia as per the
statistics.
The findings of this research bring additional
knowledge to the body of literature as well as to
enhance the policies and procedures of Malaysia
My Second Home (MM2H) Program. It also
serves to understand the factors influencing
the second home and ownership motivations
in Malaysia. By focusing on the important
influencing factors, it is hoped that the number
of MM2H program participants can increase
multi-fold in the near future. The success of the
MM2H programme can help to boost the local
economy in terms of increased foreign direct
investment (FDI), cash flow and spending in
Malaysia, thereby increasing the economy of
the nation.
The tourism industry benefits from this
research as the second home participants can
travel as often as they like throughout their
valid period of stay in Malaysia. Furthermore,
bilateral ties between Malaysia and the
participating countries are likely to improve as
more and more participants choose Malaysia as
their second home. This will bring about cultural
harmony, exposure to various living styles, food
habits and understanding. From a practical
perspective, it provides information to policy
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 Ramya Ranee Konna Segaran and Sofri Yahya 138
makers and marketers to improve the different
dimensions of this programme. The government
initiatives such as MM2H gains useful insights
from this proposed study by focusing on
the significant motivators of second home
ownership and this could be directed towards
the branding and promotion of this program so
that it reaches effectively to the masses. Last but
not the least, the study also generally contributes
to the academic literature by analyzing the push
and pull factors that motivate the choices of
second home destinations. This study might
contribute to the understanding of how different
factors of adjustment influence the success or
failure of expatriate, international migration
and settlements. This study also presents a
contribution to the research of expatriates
in developing economies which received
inadequately little attention so far. Finally,
this in-depth quantitative study provides new
knowledge and a rich source of ideas encourages
the future researchers to further investigate self-
initiated expatriates adjustment, particularly on
the international scale for migration and desire
for settlement in host country.
Literature Review
Malaysia My Second Home (MM2H) is a
special programme launched by the government
of Malaysia to encourage foreigners to live,
stay or retire in the country. This indirectly
encourages investment in property for their stay
in the region. A total of 2,211 participants were
approved in the year 2015. Strikingly, it can be
seen that majority of the participants were from
Republic of China with 719 participants.
The second home program has been
defined by many researchers differently hence
there is no conclusive decision on it (Hall &
Muller, 2004; Pitkanen, 2008). An individual
participating in a second home program always
entered this arrangement either on a temporary
or on a semi-permanent basis to spend their time
or own a property in another country (King,
Warners & Williams, 2000). As years passed
by, the causes for buying a second home has
changed drastically from the concept of owning
Journal of Business and Social Development Volume 6(1) 2018: 130-148
075.indd 138
a property in a different country to reasons such
as switch in their career, residential conditions
or changes in personal and social conditions
(Warnes, 2009). Second homes were described
as detached homes that were privately owned
by a single family for the purpose of recreation
and other uses (Marjavaara, 2009). Hence,
in general, researchers termed second home
intentions as the decision of an individual to
migrate to a different country on a long term
basis, whereas this home acts as a residence
for the individual who comes from the foreign
country (McIntyre, 2006).
The second home decisions are made by
people who wish to relocate to a different region
in the world for various factors. In general, all
the motivating factors can be divided into push
and pull factors where the underlying concept of
motivation can be needed. Lee (1966) and Dann
(1977) proposed the push and pull motivation
theory which determined the factors that were
involved in migration. There are different ways
to describe the push and pull factors. One such
method is where an individual travels to a
particular destiny as they were pushed by their
internal desires and at the same time pulled by
external forces (Uysal & Hagan, 1993; Uysal,
Li & Sirakaya-Turk, 2008). Another method
to describe is that the push factors were those
that motivate the travelers to leave the home
country whereas the pull factors were the
factors that attract the travelers to travel to a
particular destination country. The concept
of push and pull theory of migration has been
quite popular in tourism literatures and it has
gained the interest of scholars widely (Baloglu
& Uysal, 1996; Dann, 1977; Yoon & Uysal,
2005). There exist numerous push and pull
factors that influence an individual to travel
and migrate to another country. Usually single
pull factors do not support this decision-making
process. Decisions are influenced by multiple
pull factors especially when they synchronize
well with the push factors of the home country
(Dann, 1977; Klenosky, 2002). It is essential to
recognize the push factors so that second home
retirement destination developers can improve
their competitiveness by handling the problems
3/27/18 3:38 PM
 AN ANALYSIS OF PUSH AND PULL FACTORS MOTIVATING EXPATRIATE MIGRANTS 139
that drive the retirees away from their country of
residence; thus push and pull factors can be well
utilized through the development of the second
home destinations programs.
Nowadays, migration is a common
occurrence. People move from one area to
another area as a response to the socioeconomic
changes within the country. Cross-national
immigration can be argumentative as it causes
social changes within the nation and these
changes can be clearly seen in terms of social
structure and economic affairs of the local
people. Malaysia will experience positive and
negative impacts from this MM2H Program.
Hence, there should be a clear quota and
appropriate screening before the approval
of participants under this program. This will
protect the host country from any unwanted
issues and enhance the security measures.
Although MM2H can bring in several benefits
to the nation and the people, undoubtedly; it also
carries with it some negative impacts. One main
impact is the deprivation of job opportunities
for Malaysians (Shephard, 1996). However, the
positives outweigh the negatives and hence this
MM2H Program must be improvised with well-
meaning procedures and policies to improve
Malaysia’s position as the preferred second
home destination.
Theoretical Framework
Various scholars have attempted to capture the
dynamics of migration in the form of business
models. Push-Pull Model (Lee, 1966) and it is
noteworthy to discuss the concepts in detail.
Push-Pull Model (Lee, 1966)
The Push-Pull Model has its roots in Ravenstein
(1889) who found that migrants often move
from places of lesser opportunities to places
with higher levels of opportunities and
economic circumstances. This phenomenon was
termed as “the law of migration.” Lee (1966)
borrowed the Push-Pull Model to explain the
later-life migration. It was postulated that there
were four central factors in the push and pull
Journal of Business and Social Development Volume 6(1) 2018: 130-148
075.indd 139
migration process which are factors relating
to geographical origin, factors relating to
geographical destination, intervening obstacles
and personal factors. For every origin and
destination location, there exist a set of positive
and negative factors influencing migration the
set of intervening obstacles may have varying
impacts on the person, depending on personal
factors.
Push factors are the factors which force a
person to move or migrate. Push factors can be
stated as the conditions that can drive people
to leave their homes. For instance, wars in the
home country serves as the leading push factor
as well as below average primitive conditions,
desertification, famine or drought, political
fear or persecution, poor medical care, loss of
wealth, natural disasters, political or religious
oppression climate changes, lack of jobs or
simply poverty. Push motivations are those
where people push themselves towards their
goals or to achieve something such as the desire
to escape, rest and relaxation, prestige, health
and fitness, adventure and social interaction.
But, with push motivations, it can be easy to get
discouraged when any obstacles are present in
the path of achievements. Push motivation acts
as a willpower and people’s willpower is only
as strong as the desire behind the willpower
(Chang, et al. 2014).
On the contrary, pull factors are exactly the
opposite of push factors; these are the factors that
attract people to a certain location. Pull factors
are factors in the target country which encourage
people to move; these include peace and safety,
a chance of a better job, better education, social
security, a better standard of living in general
as well as political and religious freedom.
Migration can be defined as a form of relocation
diffusion (the spread of ideas, innovations,
behaviors from one place to another) involving
permanent move to a new location. The reasons
that people migrate would be due to push and
pull factors. Push and pull factors are forces
that can either induce people to move to a new
location or oblige them to leave old residences;
they can be based on economic, political, cultural
3/27/18 3:38 PM
 Ramya Ranee Konna Segaran and Sofri Yahya 140

Figure 1: Push and pull theory (Everret Lee, 1966)

and environmentally situations. Pull motivation
includes both tangible factors such as beaches,
recreation facilities, and cultural attractions,
and intangible factors such as traveler's
perceptions and expectation such as novelty,
benefit expectation and marketing image. Pull
motivation can be seen as the strong desire to
achieve a goal. Therefore, pull motivation is
said to be stronger than push motivation in
most cases. It is easier to be drawn to something
rather than to push yourself off something you
desire. It can also be an alternative force when
compared to any negative force. Pull motivation
can be an attracting desire when negative
influences come into the picture. The Push-Pull
Model has been widely adopted by scholars and
academic alike (Sunil, Rojas & Bradley, 2007;
Balkir & Kirkulak, 2009).
Figure 1 summarizes the Lee’s (1966)
push-pull theory in a graphic form. The theory
classifies the migrating factors into 3 categories
namely the positive, negative and neutral. Then,
the model further classifies them into either
“Origin” or “Destination”. Each combination
of neutrality (+ve/-ve/0) and location (origin/

Figure 2: Expatriates Motivation Business Model (EMBM)

Journal of Business and Social Development Volume 6(1) 2018: 130-148

075.indd 140 3/27/18 3:38 PM

 AN ANALYSIS OF PUSH AND PULL FACTORS MOTIVATING EXPATRIATE MIGRANTS 141
destination) means a very definite role in
migration. If it is positive and it is in the
“destination”, such factor must be a pulling
factor attracting migrants. If it is negative and
it is in the ‘origin’ then it is a push factor for
migration. This model provides us with a very
powerful tool to predict trends of migration
(Lee, 1966).
Proposed Conceptual Model
The Expatriates Motivation Business Model
(EMBM) was developed based on the extensive
review of literature as well as the management
theory presented in the previous sections. The
factors that influence the intentions to consider
Malaysia as a second home have been divided
into two parts, the push and the pull factors. The
possible push factors for expatriates leaving
the home country may be high cost of living,
social problems, ecological problems, health
hazards, natural disasters and poor safety and
security. Whereas the possible pull factors that
makes Malaysia as an attractive destination are
the economic environment, tourist attractions,
social and cultural environment, safety and
security, political stability and the relaxing
retirement life. The role of law and regulation
has a moderating effect on the relationship
between the mentioned factors as included in the
business model in Figure 2.
Based on critical review of literature, push-
pull model and the theoretical framework, the
following propositions were framed.
PROPOSITION 1:
Proposition 1 is developed to test the positive
relationship between the pull factors and the
intention of expatriates to consider Malaysia as
a second home. The sub proposition 1a to 1f has
been listed below:
1a) There is a positive relationship between
economic environment of Malaysia and
the intention of expatriates to consider
Malaysia as a second home.
1b) There is a positive relationship between
attraction in Malaysia and the intention
Journal of Business and Social Development Volume 6(1) 2018: 130-148
075.indd 141
of expatriates to consider Malaysia as a
second home.
1c) There is a positive relationship between
social and cultural environment of Malaysia
and the intention of expatriates to consider
Malaysia as a second home.
1d) There is a positive relationship between
safety and security of Malaysia and the
intention of expatriates to consider Malaysia
as a second home.
1e) There is a positive relationship between
political stability of Malaysia and the
intention of expatriates to consider Malaysia
as a second home.
1f) There is a positive relationship between
retirement life in Malaysia and the intention
of expatriates to consider Malaysia as a
second home.
PROPOSITION 2
Proposition 2 is developed to test the positive
relationship between the push factors and the
intention of expatriates to leave their home
country. The sub proposition 2a to 2f has been
listed below:
2a) There is a positive relationship between high
cost of living and reason for expatriates to
leave their home country.
2b) There is a positive relationship between
social problems and reason for expatriates
to leave their home country.
2c) There is a positive relationship between
ecological problems and reason for
expatriates to leave their home country.
2d) There is a positive relationship between
health hazards and reason for expatriates to
leave their home country.
2e) There is a positive relationship between
natural disasters and reason for expatriates
to leave their home country.
2f) There is a positive relationship poor safety
and security and reason for expatriates to
leave their home country.
3/27/18 3:38 PM
 Ramya Ranee Konna Segaran and Sofri Yahya 142
PROPOSITION 3
Proposition 3 is developed to test the moderating
effects of MM2H law and regulation towards
the intention of expatriates to choose Malaysia
as their second home.
3a) MM2H law and regulation moderating
the relationship between push and pull
factors and the intention of expatriates to
participate in MM2H.
Research Design
The most suitable proposed research design to
achieve the objectives of this research would
be descriptive research. The initiated research
explores the push and pull factors influencing
the expatriates to consider participating in
Malaysia My Second Home Programme. The
quantitative research methodology entails the
collation of necessary cross-sectional data using
questionnaire surveys in order to determine the
causal direction and discover the existence of a
causal relationship between the push and pull
factors and the intention to consider Malaysia
as a second home. Both self-administered and
electronic questionnaires proposed to be used,
whereby the self-administered questionnaires
will be distributed at places where expatriates can
often be found, and the electronic questionnaire
will be sent via Internet to reach the respondents
staying in different state and region. About
500 sample size is expected to obtain from
the survey by using the convenience sampling
and judgmental sampling method which the
respondents are expatriates who aged 21 years
old and above and have yet to make Malaysia
as their second home, regardless of the location
they currently reside. Residents aged 20 years
old and below are excluded from the survey as
the sensor of response may not be reliable.
Conclusion
This research intended to analyze the intention
of the expatriates to consider Malaysia as their
second home. The objective of this study is
to analyse the relationship between the push
and pull factors associated with the intention
Journal of Business and Social Development Volume 6(1) 2018: 130-148
075.indd 142
of expatriates considering Malaysia as their
second home. Additionally, the study also aimed
to investigate the moderating effect on the
relationship between the independent variables
and dependent variable of interest. Statistical
data revealed that Asian countries dominated
the Malaysia My Second Home Programme
(MM2H) followed by Europe, America and
Australia. The proposed target population for
this proposed research include the expatriates
from these four continents of the world who
are staying in Malaysia without participating
in MM2H. The findings of this study will draw
useful insights especially for the development of
government policies and in terms of designing
effective branding and marketing strategies. The
policy makers can focus more on promoting the
positive and significant factors influencing the
intentions to consider Malaysia as their second
home among the expatriates. By liberalizing
the policies and formalities, it is hoped that the
number of MM2H program participant can be
increased by many folds in the near future. The
success of the MM2H will then help to boost local
economy in terms of increased foreign direct
investment, cash flow, brain-gain, technology
transfer, purchasing power of the country and
contribution to GDP. Tourism industry will
also benefit as the second home participants
can travel as often as they like throughout,
their valid period of stay in Malaysia. Besides
cordial bilateral ties between Malaysia and the
other countries will be strengthened. Effective
marketing programs that focusing on promoting
the significance on the push and pull factors
such as environment factors and the natural
disaster in their country can help to differentiate
Malaysia from the intense competition posed
by its neighboring countries. Finally, the
findings of this proposed research will deliver
additional knowledge and help to understand
the important factors influencing the second
home development and ownership in Malaysia.
Government initiatives such as MM2H may
gain more insights from this study by focusing
on the significant motivators of the second home
ownership.
3/27/18 3:38 PM
 AN ANALYSIS OF PUSH AND PULL FACTORS MOTIVATING EXPATRIATE MIGRANTS 143
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