IN the lead up to the upcoming Budget 2022, iProperty.com.my has proposed that the Government bolsters buyers’ confidence by easing the Malaysia My Second Home (MM2H) restrictions to revitalise the property market.
In this regard, the Government must remain consistent when announcing a revision to the MM2H policy to safeguard Malaysia’s reputation as a viable second home to foreign homebuyers in the long run.
“Furthermore, as we transition to an endemic phase by end-October, the MM2H programme will play a significant role in enabling a better economy after two years of the impact from the global COVID-19 pandemic,” opined iProperty.com.my general manager Shylendra Nathan.
The Government has recently relaxed its rules for existing MM2H programme participants. They now only need to fulfil two out of 10 new criteria under the revamped programme: the increase in annual fee from RM90 to RM500 and the requirement to stay in the country for a minimum of 90 days each year.
Such a move will help reduce short-term pain points and outflow of MM2H holders currently within the country.
“As such, we propose that the Government continue to look into improving the MM2H programme to make it more attractive in terms of eligibility and home buying criteria for future participants. This should be done progressively over a period of time.”
“The current requirements include having a minimum of RM1 mil in fixed deposit compared to the much lower RM150,000 previously, and proof of liquid assets of a minimum of RM1.5 mil compared to at least RM350,000 previously,” he observed.
“This may dampen foreign interest in coming to Malaysia. By revising the eligibility criteria progressively, we hope to see revived foreign interest in the Malaysian property market.”
Shylendra also urged the Government to further streamline the MM2H application process to make it more convenient and accessible to potential participants.
“Addressing any application pain points will encourage genuine participants to see through with their application process and secure foreign homebuyer confidence in Malaysia,” he opined.
“Even though the programme only encompasses a relatively small segment of total homebuyers in Malaysia, it remains an essential driver for foreign buyer demand.”
Additionally, a more significant inflow of foreign direct investments into the Malaysian economy can trickle down and help support local businesses affected by COVID-19, added Shylendra. – Oct 14, 2021