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As far as I know everyone residing in Malaysia needs to pay income tax. However, there are countries with home Malaysia has a double tax treaty. England being one of them:

Are you asking about taxes in Malaysia or from the country you are from ?

The following statement is what i got when i googled MM2H and Malaysian tax:

"Malaysia My Second Home (MM2H) Program – Participants of the MM2H program enjoy tax exemptions on foreign income, but they must comply with investment and residency conditions."

I am on MM2H, but this was news to me. It appears to say that anyone on MM2H is exempt from Malaysian tax on foreign income!

Foreign income is exempted from local tax if it never enters Malaysia. If you do remit it to Malaysia you may be required to show that it has been taxed already in the source country. At least, that's what the law says; in practice, you don't really have to worry in most circumstances.

MM2H has nothing to do with it, it's your tax residence status that counts.

If you want to receive foreign income into Malaysia, it's probably better to choose a local bank to receive the funds. Foreign banks such as HSBC are more likely to be concerned. My online banking with HSBC Malaysia was actually blocked for a couple of months while I needed to provide proof of where my income was coming from. I showed them a letter from my father's lawyer for my inheritance but the most stupid thing was that I had just sold an apartment in Malaysia (the mortgage was held by HSBC Malaysia) and the redemption proceeds went to my savings account (CGT was deducted by my property lawyer). They wanted to know where the money came from..... With Maybank I was never questioned about my income.

If you are under MM2H then usually you are expected to have regular income from overseas. I very much doubt anyone is going to question it but better to use a local bank. Pensions are different though, nobody really cares about that since the amounts are pretty much the same every month.