Stringent MM2H requirements may trigger mass exodus - MP

 

Segambut MP Hannah Yeoh has urged the government to reconsider new higher thresholds set for participants of the Malaysia My Second Home (MM2H) programme or risk their permanent departures from Malaysia.

Yeoh in a statement said many of the affected participants are residents in her constituency and contribute to the local economy.

"These changes announced by the Home Ministry will have an adverse impact on the housing market, private education sector, tourism (including medical tourism), and spending patterns in our local communities.

"This simply means the changes also significantly affect our local businesses," she said.

Home Minister Hamzah Zainudin recently announced changes to the MM2H programme following its transfer to his ministry from the Tourism Ministry.

The new requirements include - participants must have a fixed deposit of at least RM1 million and liquid assets of RM1.5 million instead of RM300,000-RM500,000 previously; a monthly income of at least RM40,000 instead of RM10,000 previously; and a minimum stay of 90 days.

"These high thresholds must be reversed in the next cabinet meeting.

"Fixing something that is not broken is sheer folly and Malaysia cannot afford this now," said Yeoh.

Commenting further, Yeoh cited findings of a recent TEG Media survey that found 79 percent of over 900 existing MM2H participants do not meet the new income requirement.

Of those who do meet the income requirement, 89 percent were not able to meet the fixed deposit requirement and 90 percent of participants say their views of Malaysia are now somewhat worse.

"The stringent criteria and unattractive requirements will inevitably lead to a mass exodus of MM2H participants," said Yeoh.

The survey polled 1,400 people from 58 nationalities, of which 500 were prospective MM2H applicants.

She said the government should take into consideration Malaysia's competitive edge among other countries in the region to attract foreign investments, especially during the current Covid-19 pandemic.

"We cannot be sending the wrong message to the rest of the world during this time," she stressed.

It was reported that among concerns raised surrounding tighter MM2H regulations include a sudden outflow of funds and increased property overhang linked to foreign departures.  - Mkini