KEPONG MP Lim Lip Eng has called for a review of the new Malaysia My Second Home (MM2H) regulations, criticising them as counterproductive and only suitable for high-net-worth individuals.
He highlighted that the requirement for applicants to buy property in Malaysia and hold it for at least 10 years is a significant deterrent, making the scheme less attractive compared to more flexible options in neighbouring countries like Thailand and Indonesia.
Lim noted that this rigidity has led to a dramatic 90% drop in prospective applicants.
“While the introduction of mandatory property investments can be seen as a positive step to boost the real estate sector, the requirement to hold these properties for at least 10 years is proving to be a significant deterrent and counterproductive,” said Lim.
“This rigidity makes the scheme less appealing compared to the more flexible options available in neighbouring countries such as Thailand and Indonesia.
“Agencies processing MM2H applications report a dramatic decline in interest, with a 90% drop in prospective applicants.”
Under the previous MM2H scheme, applicants enjoyed greater flexibility with lower financial thresholds, attracting a diverse group of retirees and expatriates who contributed RM58 billion to the local economy over 17 years.
The new focus on high-net-worth individuals has significantly narrowed the applicant pool, offering limited economic benefits due to the restrictive nature of the rules.
The compulsory property purchase requirement is unlikely to boost the housing market as intended and may result in many unsold or unrented units.
Reassessing the 10-year property holding requirement is seen as crucial for revitalising interest and ensuring the scheme’s success.
The new three-tier scheme, introduced by Tourism Minister Tiong King Sing, requires property purchases and substantial fixed deposits, further complicating the appeal of the programme.
