Written by Stan Lee, Politics Now!
KUALA LUMPUR (Politics Now!) - Good news is in store for Malaysia My Second programme (MM2H), with Tourism Minister Tiong King Sing promising "positive" changes will be announced in mid-December.
“Pending the ironing out of some details, the changes will be positive, with the MM2H threshold set to see major adjustments,” The Star reported him as saying.
MM2H is residency programme offered by the Malaysian government to foreigners and expats worldwide who wish to apply for a 5-year renewable long-term pass to stay, work and own property in Malaysia. It is open to citizens of all countries recognized by Malaysia regardless of race, religion, or gender.
WAKE UP OR PERISH
The programme was put on hold for a year due to the Covid-19 pandemic and reactivated on Aug 11, 2021 - but under new and very stringent conditions by the then home minister Hamzah Zainuddin.
Hamzah not only attracted controversy but was sharply rebuked by many quarters including the Johor Sultan for the move that was seen suicidal not only for the MM2H programme but for the overall economy as well.
Malaysia's economy is highly dependent on tourism, raking in RM28.23 billion in 2022 – but even that was a massive drop from an all time high of RM86.14 billion in 2019, just before the Covid-19 pandemic struck. The country is targeting an influx of 16.1 million foreign tourists with RM49.2 billion in tourism revenue to boost its economy this year.
The economy also faces a potential and drastic meltdown from a massive property overhang, carried through from the pre-Covid boom days. Foreign purchases via the MM2H had formed a significant part of the demand for Malaysian property.
Under the revisions imposed by Hamzah, monthly income required to qualify for the MM2H programme was revised from RM10,000 to RM40,000 a month; main applicants needed to prove they had liquid assets amounting to a minimum of RM1,500,000; the fixed deposit requirement was increased to RM1,000,000; applicants aged 35 to 49 year old with dependents must also deposit additional amounts of RM50,000 for each dependent; applicants would only be allowed to withdraw up to 50% from the fixed deposit after one year for the purposes of education, healthcare and purchasing houses; the MM2H pass holder and /or their respective spouses must also reside in Malaysia for at least 90 days cumulatively in a year; the minimum age of main applicants was increased from 21 to 35 years old; various fees were also increased.
"To be fair, Singapore jacked up its pricing requirements for foreign purchases of its property too but Malaysia must wake up to its own reality. It is no longer in the same bracket or even close to Singapore while the competition for foreign investments from countries like Thailand, Vietnam, Indonesia are so strong they overshadow us," an economist told Politics Now!
"And here, we have the threat of rising political and religious extremism. These two alone will kill our economy because businesses look for stability, business-friendly and moderate environments while property investors look for 'live-ability'. How live-able is Malaysia if its government or political parties keep impinging on minority rights by banning this and that due to their own interpretation of their faith?"
"SIGNIFICANT MODIFICATIONS"
According to Tiong, "significant modifications" have been made to the existing strict MM2H conditions so as to drive tourism and foreign investments into Malaysia.
Previously, he had also said his ministry would be taking over the marketing of the MM2H programme from the Home Ministry on Oct 15.
His ministry will be reviewing all agents involved in the MM2H programme and requiring them to re-register. Tiong is also expected to take over the marketing of the MM2H programme from the Home Ministry.
“The existing MM2H consultant agents will not get automatic recognition. Their backgrounds will be thoroughly checked, with unsuitable agents weeded out,” Tiong also ordered a fixed consultancy fee to “ensure transparency and fairness”.
His ministry is targeting to attract between 10,000 and 15,000 MM2H applications and approvals next year, with a projected revenue of about RM11.25bil.
MM2H Consultants Association president Anthony Liew said inquiries about MM2H have surged following Prime Minister Anwar Ibrahim’s announcement of various relaxations, first made when presenting Malaysia's Budget for 2024 in October.
“The most interest came from the people of China, Singapore, the United Kingdom, Japan and South Korea,” said Liew.
Written by Stan Lee, Politics Now!
Politics Now!
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