WHILE the move by the Home Ministry to reactivate the Malaysia My Second Home (MM2H) programme is timely, the Malaysian Institute of Estate Agents (MIEA) is of the opinion that certain new requirements “needs to be revisited to stay on course of the purpose it was intended for”.
There are currently 57,748 MM2H holders who contribute RM11.98 bil to the Malaysian economy.
“Being a real estate association that represents the fraternity at large, we are always concerned as to how real estate laws, policies and programmes can play a role in helping to strengthen the real estate market at whichever point the market is at,” MIEA pointed out.
Below are MIEA’s 10 observations and recommendations:
- The quota of not more than 1% of the Malaysian population is acceptable to keep control of the limit of MM2H recipients;
- The imposition of an increased processing fee and levy is acceptable to gain greater revenue for the country.
- Increase in the minimum income of RM40,000/month from current RM10,000/month is too drastic a move. Perhaps different classes of applications can be tailored in order to cater to the various types of foreign applicants.
- Having liquid assets of RM1.5 mil from current RM350,000 (over 50 years old) & RM500,000 (under 50 years old) is a dramatic change and should be applicable based on the different class of application.
- The tenure of the visa shall remain at 10 years to provide stability.
- Placing fixed deposits of RM1 mil in a Malaysian bank from current RM150,000 (over 50 years old) & RM300,000 (under 50 years old) is a six-fold and three-fold increase which is a dramatic rise. This sudden move will discourage foreigners to participate in the programme.
- Policies need to be consistent in order to promote confidence. MIEA proposed that all existing MM2H pass holders should not be affected by this new ruling.
- In light of the pandemic and in order to allow sufficient time for preparation, MIEA proposed to defer the new criteria to December 2022.
- The real estate market is reeling due to COVID-19 and the lockdown.
- Malaysia is not the only country that has similar programmes.
Based on the above observation, MIEA proposed that the Home Ministry look into different classes of applicants to cater to the various types of foreign investors to attract the right groups of people who can add value to our country.
“Secondly, a review should be done in the applying of the new rules to existing pass holders so as to ensure that there is no disorder in the lives of the 57,000 pass holders,” noted MIEA.
“This will boost the confidence of foreign investors both in our nation and its policies. We hope the positive view for the betterment of our country be taken into serious consideration.” – Aug 13, 2021
