A total of 1,822 Malaysia My Second Home (MM2H) programme participants left the country between 2015 and 2019 without coming back.
Participants from China made up the largest proportion with 920 who never returned to Malaysia, followed by Japan (214), South Korea (201) and Bangladesh (134).
This was revealed in the Auditor-General's Report 2019 Series 2 which highlighted the lack of proper monitoring mechanisms in the programme.
MM2H allows foreigners who meet its criteria to live in Malaysia for 10 years on a multiple-entry renewable social visit pass.
According to the report, a total of 48,471 foreigners from 131 countries participated in MM2H from 2002 to September 2019.
"The audit analysis found that, out of 35,541 participants, a total of 1,822 of them had left Malaysia and did not return to in the past five years," said the report.
Under MM2H, participants are required to enter Malaysia once within six months after approval to take part in the programme. They are not required to stay in the country within a certain period of time.
No letter of good conduct
The report also raised the issue that the absence of a letter of good conduct (LOGC) requirement to verify that the dependants of the MM2H participants are free from criminal misconduct, posed a risk to national security.
According to the Auditor-General's Report, the programme management was also found to be inefficient and ineffective with the absence of an integrated database and weaknesses in the internal controls of the Malaysian Immigration System (MyIMMs).
“The audit further found that no LOGC was attached for 107 dependants of 59 participants as the rules did not stipulate that the letter had to be submitted and that no other method was used to verify the dependants were free from criminal misconduct in the country of origin,” it said.
Unclear rules or procedures made it difficult for the Tourism, Arts and Culture Ministry and the Immigration Department to effectively monitor and evaluate the achievement of the programme.
"Besides that, the minimum offshore income of RM10,000 per month has never been reviewed since MM2H was started in 2002. The inconsistent recognition of the health status of MM2H applicants invites the risk of spreading dangerous infectious diseases.
"Participants' children enjoy eligibility as dependants even though they are over 21 years old due to unbalanced rules," the report added.
Integrated system needed
However, in general, MM2H participation from 2015 to September 2019 had shown good achievement with a total of 21,292 people involved in the programme compared to the set target of 17,500.
Coordination between the Tourism, Arts and Culture Ministry and relevant ministries or agencies needs to be enhanced by establishing an integrated system to improve the effectiveness of the implementation, monitoring and evaluation.
The report said the Tourism, Arts and Culture Ministry, Immigration Department and the MM2H Steering Committee need to review and revise the circular or guidelines of the programme to be more uniform, clear and comprehensive.
Apart from that, a study should also be conducted on health screening procedures to be in line with the standards set by the Immigration Department and Health Ministry.
In addition, the report also recommended the use of digital smart cards to record information on participants’ property purchases, residential and employment for more effective monitoring purposes. - Mkini
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