Letter to Editor
THE “Malaysia My Second Home” (MM2H) residency visa scheme, once a beacon for foreign retirees, is now losing its appeal due to newly imposed stringent regulations.
Industry experts and economists are voicing concerns about the latest guidelines, which mandate property purchases and require holding them for at least ten years, leading to a significant drop in interest among prospective applicants.
The revised MM2H scheme mandates higher bank deposits ranging from US$150,000 to US$1 mil, along with property investments between RM600,000 and RM2 mil.
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 ten years is proving to be a significant deterrent and counterproductive.
This rigidity makes the scheme less appealing compared to more flexible options available in neighbouring countries like 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.
The scheme required bank deposits of RM300,000 for those below 50 and RM150,000 for those above, without a mandatory property purchase. This approach attracted a diverse group of retirees and expatriates, contributing RM58 bil to the local economy over 17 years.
Although the new scheme’s focus on high-net-worth individuals represents a policy shift, its stringent requirements have significantly narrowed the applicant pool.
Economists argue that the new MM2H rules offer limited economic benefits due to their restrictive nature. The compulsory property purchases are unlikely to boost the housing market as intended and may leave many units unsold or unrented, as highlighted by an economic research house.
In conclusion, the MM2H scheme needs to strike a balance between attracting high-net-worth individuals and providing flexibility to make Malaysia a desirable retirement destination. Reassessing the ten-year holding requirement could be a crucial step in revitalising interest and ensuring the scheme’s success. – June 30, 2024
Lim Lip Eng
Kepong MP
