Make Malaysia more attractive for long-stay foreigners, govt told

 

Many foreigners are happy to make Malaysia their second home. (Bernama pic)

PETALING JAYA: The government should boost the Malaysia My Second Home (MM2H) programme to make it more attractive to foreigners, say a chamber of commerce and a group representing MM2H consultants.

Donal Crotty, chairman of the Irish Chamber of Commerce Malaysia, said a review of the conditions would make foreigners consider Malaysia as a place to live and retire.

“At least return the programme and its requirements to where it was four years ago. This will help stimulate growth and take up some of the excess housing stock,” he told FMT.

The MM2H programme is aimed at drawing foreigners for long-term stay in Malaysia.

In August 2021, the government announced new conditions for the programme, including permanent savings of at least RM1 million and liquid assets of at least RM1.5 million. Previously, they only needed to have savings of between RM300,000 and RM500,000.

An MM2H applicant must now also have an offshore income of at least RM40,000 a month, up from RM10,000.

This drew brickbats from various quarters including Johor’s Sultan Ibrahim Iskandar who warned that the new conditions would scare off investors and affect the country’s revenues.

Crotty also said the government should consider extending the length of stay from 10 years to 20 years with five-year renewals.

“This way, people will be more inclined to invest and make the change to move to the country without fear of near-term changes,” he added.

He said Malaysia could benefit from “leveraging the knowledge and wisdom” of older foreigners who could contribute on a professional level in areas such as consulting, teaching and coaching.

“Perhaps the new government can also consider introducing a referral scheme for existing MM2H holders to draw business colleagues or friends who can contribute to the country’s economy,” he said.

MM2H Agents Association president Anthony Liew, who also called for a review of the programme, said the government should consider lowering the monthly income rule for the foreigners, specifically retirees.

“Previously, retirees made up about 40% to 50% (under MM2H) but with the new terms, this has dropped.

“They (retirees) have told us the monthly RM40,000 income expected of them was too high and should be reduced to a more acceptable level,” he said.

As for the 90-day minimum stay, Liew said the government should reduce it to 15 days, particularly targeting younger individuals who were still active in their careers elsewhere but wished to make their second home in Malaysia.

He also said the minimum age for the MM2H programme should be lowered to 25 so that young professionals working in IT or the big data sectors could also contribute to the nation’s economy.

In August then home minister Hamzah Zainudin said there were 267 new applications for the programme since it resumed after the Covid-19 hiatus but 1,461 people had sought to drop out of the programme from September 2021 until June 2022. - FMT