Are the New MM2H Conditions “Bizarre”?

The MM2H (“Malaysia My Second Home”) Programme was started in 2002 and was promoted by the Malaysia Tourism Authority and the Immigration Department. It was primarily marketed as a retirement programme. Those under the programme reportedly expended RM10,000 per month and over half had purchased property – 33% bought homes below RM1 million and another 25% paid RM2 million or above for their property.

Source: http://www.mm2h.gov.my

With the pandemic the programme was suspended in October 2020, causing consternation for many expats. The programme, between 2002 and 2019 had generated RM11.9 billion in cumulative income for the nation. This was in terms of fee, visa charges, purchase of properties and vehicles, fixed deposits and monthly household expenditures.

On August 11, the Home Ministry Secretary General announced changes to MM2H. The objective is to secure high-income participants. The key changes are as follows:

Participant numbers under the programme is set at 1% of the Malaysian population. That translates to 320,000 on current population estimates.

Many expatriates are convinced the Government is trying to remove them from the country. It is suggesting non-citizens do sell off their assets, remove all fixed deposits and perhaps move to Thailand – its Elite Visa is valid for 5 years and costs about RM100,000 for two people.

We have 57,478 holders of MM2H passes and another 1,000 are pending approval. Existing holders will have to comply with new conditions if they wish to renew.

The move will impact negatively real estate agents, vendors, tourism operators, retailers and many more. In a severe downturn with a property overhang, don’t we want investors? If that is not true, why don’t we cancel the programme? And how can Immigration Department be the driver replacing the Tourism Authority of this “still born” idea? Immigration personnel are trained to detain people not welcome foreigners! Could we not have two programmes – one is the basic programme with lesser benefits, and another is a premium programme with higher incentives? Are we the only country with a MM2H? There are several in the region and the world. In short, from October 2020 to August 2021, we have come up with a poor piece to be criticised severely by potential residents/investors. Could we stop this insular thinking and try to welcome people who contribute to our GDP?

 

References:

They’re kicking us out: expats decry MM2H changes, Rachel Yeoh, The Vibes, 13 August 2021

“Requirements too stringent”, Rashvinjeet S. Bedi, The Star, 13 August 2021