Industry players voice concerns over new MM2H rules

PETALING JAYA: Concerns have been raised over the new policy changes and requirements for the reactivated Malaysia My Second Home (MM2H) programme.

While welcoming the reopening of the programme, industry players believe that the new requirements are too stringent and may be out of reach for many applicants.

“MM2H is just a social visa pass and not a Permanent Residency (PR).

“These new requirements seem to be for a PR,” said Malaysia My Second Home Consultants Association president Anthony Liew.

Liew said, for example, Thailand’s Elite Visa with a validity of five years only costs 800,000 baht (RM103,000) for two people.

“Malaysia is a good place to stay but we need to be more welcoming to investors.

“These terms and conditions will only push them away,” he added.

On Wednesday, the government announced that it was introducing nine new conditions for those intending to apply for the programme.

Among others, the participants must be in the country for at least 90 cumulative days in a year to ensure that they truly contribute to the Malaysian economy, and are also required to have an offshore income of at least RM40,000 a month, compared to RM10,000 previously.

They must also have a fixed deposit account with a minimum of RM1mil, with 50% maximum withdrawal allowed for the purpose of buying property or spending on health and children’s education.

Previously, participants only needed to place RM300,000 in fixed deposits while for those over 50, the amount was RM150,000.

New applications, which can be submitted starting October, will now be reviewed by the Immigration Department, which has taken over these duties from the Tourism, Arts and Culture Ministry.

Liew said while the previous requirements could be tightened, it should not have been so drastic, adding that his association was looking to provide feedback from agents and relevant parties to the government.

Best Home (MM2H) managing director Lim Kok Sai said the new requirements were just too high, pointing to the amount needed for fixed deposits and monthly income.

“Not many people, especially pensioners, will earn this monthly salary. It is very prohibitive,” he said.

Lim said those staying here under the previous requirements would now be stuck in a quandary as some would have sold their homes back in their own country.

“It won’t be easy for them to comply with the new policies,” he added.

There are currently 57,478 holders of the MM2H passes, including dependants.

Currently, more than 1,000 applications are pending from participants in countries such as China, Japan, Britain, Bangladesh, South Korea, Singapore, the United States, Australia, Taiwan and Indonesia.

Applications for MM2H were frozen when Malaysia closed its borders due to the Covid-19 pandemic last year.

Between 2002 and 2019, the MM2H programme generated a cumulative income of RM11.89bil through fee and visa charges, purchase of properties and vehicles, fixed deposits and monthly household expenditures.