PETALING JAYA: Malaysia My Second Home (MM2H) consultants are hoping the government will have a change of heart and loosen the application criteria, noting that stricter requirements would scare off potential clients amid a global economy reeling from Covid-19.
After being frozen last year for “review and further improvements”, the government yesterday announced that the long-standing programme, which has seen tens of thousands of foreign nationals settle in the country, would be back online in October.
At a press conference, home ministry secretary-general Wan Ahmad Dahlan Abdul Aziz unveiled 10 stricter criteria which applicants would need to fulfill.
Key among them are an increase in their compulsory fixed deposits (FD) in local banks from between RM150,000 and RM300,000 to RM1 million, and offshore monthly income from RM10,000 to RM40,000.
Applicants would also need to have at least RM1.5 million in liquid assets, compared with between RM300,000 and RM500,000 previously.
Speaking to FMT, MM2H Consultants Association (MM2HCA) president Anthony Liew welcomed the programme’s revival but said the criteria are “beyond our expectations”.
“It’s just too high. We will definitely push for better terms,” he said.
“There are so many other countries that foreigners can choose instead. Some of my members’ potential clients have told them that if they had a monthly income of RM40,000, they would go to other countries.
“The government wants to reactivate the programme, and we agree with it, but we have to see whether these terms are competitive or not. Malaysia is a good place to stay in, but the economy is so bad at the moment. So, for the FD amount to shoot up more than three times to RM1 million, it’s just too much.”
Liew said another key concern among potential clients is that it only grants a long-term visa as opposed to permanent residency.
Established in 2002, the programme allows foreigners to stay in Malaysia for 10 years, which is renewable. That period has now been reduced to five years.
Dahlan said the Cabinet’s decision to revive the programme was part of the national recovery plan, which aims to kickstart the economy after more than one-and-a-half years of lockdowns and movement restrictions.
Successful applicants, who numbered nearly 39,000 as of last year, brought in RM40.6 billion throughout the 19 years of the programme, mostly from property purchases and compulsory FDs in local banks.
The programme’s participants spent an estimated RM4.9 billion in 2017 and RM4.4 billion in 2018 on property, rent, vehicles and immigration fees. Among the other sectors they have contributed to are medical, education, travel, hospitality, retail, F&B and entertainment.
Noting that neighbouring countries like Thailand and the Philippines have programmes similar to MM2H, another consultant told FMT he hoped the government would reconsider the 10 criteria.
“You want people to come and stay here, but you set these kinds of rules,” said the consultant, who asked not to be named. “The criteria in other countries are not so high.
“I have doubts, especially about the higher fixed deposit amounts.”
He was also concerned that those already in Malaysia under the MM2H programme would face difficulties when they apply for visa extensions as they would have to meet stricter requirements.
He said the government should ensure that previous successful applicants are not affected by the new criteria.
He stressed that MM2H holders need policy stability and failure to provide them that would erode trust in policy makers.
“MM2H is a big thing for families. They are making a big decision when they think about whether they want to come here to live, study or whatever,” he said.
“If the government can simply change the rules, people may not have the confidence in the future.” - FMT
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