MM2H damage done, trust is gone, say foreign residents

 

New requirements on income and savings are reported to be among the reasons for a sharp drop in MM2H applications.

GEORGE TOWN: Long-term residents under the MM2H programme have lost trust in the government after stringent new rules were applied last year and then later relaxed.

The damage has already been done, says British national Kate Morgan, who has lived in Malaysia since 2011. “Many people already here on the MM2H visa no longer feel they are able to trust the Malaysian government,” she said.

Morgan said there was still a lot of apprehension among existing MM2H visa holders like herself, although the new rules are now being applied only to new applicants.

New conditions were introduced in 2021 requiring applicants to have permanent savings of at least RM1 million (previously RM300,000), liquid assets of at least RM1.5 million (previously RM500,000), and an offshore income of at least RM40,000 a month, up from RM10,000.

“As a retiree, it is very difficult to increase one’s income once retired, especially by a factor of four,” said Morgan.

Last week, an MM2H consultant told FMT that the number of applicants had fallen by 90% since the introduction of new conditions, from around 5,000 a year between 2017 and 2019.

MM2H Consultants Association president Anthony Liew said the new requirements were among the major reasons for the drop, as neighbouring countries did not set such conditions.

Donal Crotty, who has worked in Malaysia for 13 years and lived here for seven, said many MM2H holders he knew had chosen to move away.

Crotty, the chairman of the Irish Chamber of Commerce Malaysia, said there was perception of MM2H now being only for the wealthy.

“After much lobbying and reality checks, the government decided to reverse its decision and maintain the criteria as before for the renewal of MM2H. Yet, it maintained the excessive requirements for new applicants.

“For many existing MM2H visa holders, this was too little, too late. They had already lost confidence and trust in the government and despite the reversal, chose to move on,” he said.

Crotty said it was encouraging that the present government has committed to speeding up expatriate work visa processes.

“This indicates the government recognises the contributions and value that expatriates can bring. I hope this spirit will be reflected in a revision of the MM2H rules.” - FMT