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Applications under the Malaysia My Second Home programme are designed to be as straight-forward as possible and can be made when either inside or outside the country, but of course, you must be in the country legally to apply when already in Malaysia.
For the small number of nationals from countries that require a Visa to enter Malaysia, there is an exemption from getting a new Visa from Malaysian Embassies or High Commissions abroad when applying from within the country.
This does not affect UK nationals who do not need a Visa to enter Malaysia anyway.
In general, the documentation required is quite straight-forward comprising a letter of application together with a two page form (IM12) and two passport photographs of both the applicant and spouse (if appropriate). The authorities will also need to see a full copy of the applicant's (and spouse's) passport and/or travel documents; a copy of a marriage certificate (if accompanied by a spouse) and evidence confirming the existence of the required fixed deposit or other proof of overseas income.
There is also a short personal bond form which needs to be stamped (cost: about £2.00) by the Stamp-Duty Office and which needs to be signed by the sponsor (if applicable). Also, for those requiring a sponsor a copy of the sponsor's Identity Card (if applicable) and a sponsor's statement form (again, if applicable). For further information click here.
Fees
The fee for applying for a Social Visit Pass under Malaysia My Second Home programme is RM 90.00 per year (currently about fourteen pounds) and any Visas or Employment Passes for maids or Student Passes for children are charged at the standard prevailing rate (typically about fifteen pounds)
Clients' Charter
The Malaysian Immigration Authorities aim is to make the process as non-bureaucratic as possible and they subscribe to a clients' charter which aims to process new applications within 21 working days from the date of submission and renewals within 3 working days from the date of submission.
Identification Cards
Malaysian identification cards are issued to individuals under the Malaysia My Second Home programme by the Malaysian Immigration Department Headquarters.
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MM2H Procedures 
Applications under the Malaysia My Second Home programme are designed to be as straight-forward as possible and can be made when either inside or outside the country, but of course, you must be in the country legally to apply when already in Malaysia.