MM2H market collapses after tougher rules imposed

 

The new conditions for the MM2H programme include permanent savings of at least RM1 million and liquid assets of at least RM1.5 million.

PETALING JAYA: Tougher conditions on applicants for the Malaysia My Second Home programme has resulted in a 90% drop in the number of applicants, the MM2H Consultants Association said.

Its president, Anthony Liew, told FMT the average number of applicants from 2017 to 2019 was 5,200 a year. “Right now, I believe it’s just about 10% of that. The main issue is the strict conditions,” he said.

The MM2H programme is aimed at attracting long-term foreign residents, but new conditions were introduced in 2021 after a freeze during the Covid-19 pandemic.

Applicants are now required to have permanent savings of at least RM1 million and liquid assets of at least RM1.5 million. Previously, they only needed savings of between RM300,000 and RM500,000.

Theys must now also show an offshore income of at least RM40,000 a month, up from RM10,000.

Liew said the income and savings requirements were among the major reasons why the number of applications plunged. He said neighbouring countries did not set such conditions.

Although foreign retirees might have sufficient liquid assets, they might not always have sufficient monthly offshore income to qualify for MM2H.

“We propose changing it to RM600,000 or below,” he said. “We need to encourage the successful applicants to stay in Malaysia and spend on buying property and cars, private education, medication, leisure, and other sectors which have spillover effects on the economy.”

Liew said there are also fewer agencies helping promote and help foreigners apply for the programme as they have been unable to sustain operational costs, with some agencies working on a part-time basis.

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One agent who has also seen a “tremendous decrease” in applicants is William Teo.

He said he submitted 277 applications in 2019, and 108 applications before the programme was suspended in July 2020. When the programme resumed in October 2021, there were zero applications, he said.

It was not easy to get clients, because of the stricter conditions, and the damage to his network caused by the pandemic.

Last year, Teo submitted eight applications and has sent in three so far this year.

“The requirements are too high,” he said. “If the applicants can meet them, they will not choose Malaysia as they have better options.” - FMT