By Rajiv Rishyakaran
ON Nov 2, 2020, the Minister of Tourism, Arts and Culture (MOTAC) announced that the Malaysia My Second Home (MM2H) will not be cancelled but is frozen temporarily to avoid disappointing applicants while renewing and devising conditions in the pandemic.
However, this process of revaluation has now gone on for about four months (since Aug 4) with no standing from the ministry.
Their inability to make a decision has hit existing business and limited the spurring of the economy during this difficult time.
About one-third of consultants and agents for the MM2H programme will likely close their business in three months. The companies have expressed their concerns of not being able to last for more than three months and this is worrying.
Although the Minister has said that the freezing is due to the pandemic, the MM2H programme brings no COVID-19 threat to the country.
The successful applicants will undergo a 10- or 14-day quarantine after flying in and follow all standard operating procedures (SOPs) that any Malaysians returning to the country would.
Being long-term residents of the country, their risk of contributing to the increase in numbers is almost equivalent to existing residents in Malaysia.
Killing the golden goose
In addition, records have shown that the applications and approvals have been halted for the programme since end-2019 before the pandemic hit.
Representatives of the Malaysian My Second Home Consultants Association (MM2HCA) say 90% of the applications they submitted between September and November 2019 were rejected without any reasons or justifications.
That pre-2019 rejection rate had hovered around 10%.
So why is the Government freezing one of the world’s most successful and largest investment migration programme?
Since its inception in 2002 to 2019, the programme has brought in RM40 bil to the economy.
Freezing the programme is almost like killing the goose that lays the golden eggs.
As we are talking about high-net worth individuals seeking a retirement home or a place to start afresh, unfreezing this programme will help with the rental and property market that has taken a significant hit from the pandemic and cure property overhang.
It is not just the property market that will see benefits from this, but the overall economy from the influx of foreign currency that comes with the migration of rich expatriates from around the world.
More so now, at a time where the rising COVID-19 cases in Europe and the US may push the upper income retirees who were leaning on migration to a warmer climate to take the plunge and do so.
At a time where we are battling a slump in economy due to the COVID-19 pandemic, we should do everything we can to grow the domestic economy, including reopening MM2H entries rather than freezing out an economic opportunity.
With this, I strongly urge MOTAC to unfreeze the MM2H programme as soon as possible and to act quickly in this time of crisis instead of sitting back and waiting for something to happen as their delay in decision-making showcases their incompetence which has led to further damage instead of what could have been an opportunity to capitalize. – Jan 4, 2021
Rajiv Rishyakaran is the state assemblyman of Bukit Gasing in Selangor.
The views expressed are solely of the author and do not necessarily reflect those of Focus Malaysia.
