Johor moots MM2H scheme to ease property overhang

JOHOR BARU: Johor wants its own version of the Malaysia My Second Home (MM2H) programme to reduce the property overhang in the state.

State housing and local government committee chairman Datuk Mohd Jafni Md Shukor said he had highlighted the matter to Home Minister Datuk Seri Saifuddin Nasution Ismail and urged the Federal Government to review the programme’s strict conditions.

“More than 80% of the unsold properties in Johor are serviced apartments priced between RM500,000 and RM1mil on average – not many locals can afford it.

“By reverting the MM2H requirements back to the previous conditions and possibly allowing the state to have a Johor My Second Home programme, I believe we can solve the property overhang issue.

“The minister said he will look into it,” Mohd Jafni told reporters after attending the Greater Johor Baru memorandum of understanding signing here yesterday.

He added that most of the unsold properties were located here.

Presently, the conditions for those interested in the MM2H programme must own RM1.5mil in liquid assets, RM40,000 in monthly offshore income, RM1mil in a Malaysian fixed deposit, and an additional RM50,000 per dependant.

The new conditions were announced in August 2021.

Previously, there was no minimum stay requirement for participants who only needed to place RM300,000 in fixed deposits while for those over 50, the amount was RM150,000.

In September last year, then deputy finance minister Datuk Mohd Shahar Abdullah said Johor recorded the highest number of unsold residential units, with 6,000 units worth RM4.7bil.