THE government has agreed to review the strict terms and conditions for the Malaysia My Second Home (MM2H) programme after the new stringent rules had led many settled expatriates to leave and the number of new applicants to drop by up to 90%.
According to the Tourism, Arts and Culture Ministry (MOTAC), the decision to review the controversial conditions imposed since 2021 was reached during a meeting attended by its minister Datuk Seri Tiong King Sing and Home Ministry secretary-general Datuk Ruji Ubi.
Tiong said that the application process for the programme will be made more flexible, adding that both parties had agreed for Tourism Malaysia to promote and provide recommendations for applications via a filtering process through an MM2H one-stop centre.
The one-stop centre will assist interested individuals to process their applications and collate documents for submission to the Home Ministry or the Immigration Department for the issuance of the MM2H pass.
Tiong, in a statement issued earlier today, said his discussion with Ruji had also touched on the visa on arrival (VOA) facility for visitors from China and India to promote the growth of the tourism sector.
He said a proposal on the VOA for both nationalities will be submitted to the cabinet soon for further action.
It was previously reported that the MM2H programme has seen a 90% drop in the number of applicants because of tougher conditions imposed.
Reports said those looking for adopted homes were opting for other neighbouring countries no thanks to the strict conditions imposed by the previous administration in 2021.
In September 2021, Segambut MP Hannah Yeoh warned that the government could drive away much needed foreign investment and the expatriate community that has made Malaysia home with its new rules for the MM2H programme.
She said the new stringent rules could not be met by the majority of MM2H participants, and could lead to a “mass exodus” which would hurt the local economy across several sectors.
Citing a survey published by ExpatGo, she said 79% of existing MM2H participants do not meet the new income requirement.
Of those who do meet the income requirement, Yeoh noted that 89% cannot meet the fixed deposit requirement and 90% of participants say their views of Malaysia are now somewhat worse.
Yeoh’s review call followed one issued by Sultan of Johor Sultan Ibrahim Sultan Iskandar a week earlier.
The Johor Ruler described the new rules as very restrictive and warned that such conditions would not make Malaysia the preferred destination for high-income foreigners.
The MM2H programme introduced in 2002 offered foreign nationals a 10-year-long visa that was renewable, and was meant to entice high-income visitors to stay in Malaysia for a long term.
Long-term MM2H participants, said to number 57,478 people, are said to have invested nearly RM12 bil in the economy since its inception.
They reportedly spend around RM10,000 a month, with many having purchased high-end properties in Johor.
The programme was suspended in August 2020 due to the COVID-19 pandemic.
In Aug 2021, the government announced that it would be restarting MM2H again, beginning October, with changes to nine conditions.
Among them: participants need a fixed deposit of at least RM1 mil and liquid assets of RM1.5 mil instead of RM300,000-RM500,000 previously; monthly income of at least RM40,000 instead of RM10,000 previously; and stay in Malaysia a minimum of 90 days. – April 19, 2023
Main pic credit: The Star
