This comes amid soaring property prices in major Chinese cities like Beijing and Shanghai, which are among the most expensive in the world, says business daily The Financial Times (FT).

Drawn by the comparatively lower cost of living, the paper said Chinese expatriates were now favouring Malaysia over Western options.

It quoted Sigrid Zialcita, managing director of Asia-Pacific research at Cushman & Wakefield, who said the affordability factor tipped the scales for many mainland Chinese investors.

“The Chinese investor today has a lot more options and has become more comfortable going to Europe and the US, but not everyone has the same options – Malaysia is much more affordable,” she was quoted as saying.

“If you compare prices, even between Malaysia and China, you are looking at a significant difference.”

According to government statistics, almost 8,000 Chinese citizens have been granted residency in Malaysia under the Malaysia My Second Home programme.

This is nearly twice as many as Japan, who follows with 4,127 citizens.

Under the programme, Malaysia allows multiple visa entries and a 10-year social pass.

Likewise, Forest City, a RM100 billion smart city project in Johor, is for many a symbol of China’s growing presence in Malaysia.

It has been the subject of some alarm in the country as potential buyers from mainland China flock to the Iskandar Malaysia zone.

However, the project has run into troubled waters lately after China imposed capital flight control measures, making it harder for individuals to move money out of the country.

Economists say those who bought properties in Forest City might not be able to repay their bank loans because they would be prevented from taking their money out of China.