SABAH launched its own version of the Malaysia MySecond Home (MM2H) program today, with plans to appoint “qualified representatives” to process applications.
This move shifts the responsibility from agents approved by the Federal Tourism, Arts and Culture Ministry (MOTAC) to Sabah's representatives.
Tourism, Culture, and Environment Minister Datuk Christina Liew said the Sabah-MM2H initiative has come fully supported by the state and has received approvals from all authorities, including MOTAC.
"Sabah's decision to implement this program is independent. There are some technical matters to address, but they will not affect Sabah-MM2H policies (in general)," Liew stated.
Her comments come amid tensions with MOTAC arising from the federal ministry move to cancel all MM2H agents' permits nationwide on May 27.
"This is a state government policy. I believe there are some misunderstandings, but we will leave them alone. As briefed earlier, there are about five or six steps in the application process, all approved by both state and federal authorities, including MOTAC," Liew added during the program's launch in Kota Kinabalu, today.
The initial launch of Sabah-MM2H was planned for June 1 but according to Liew was derailed after MOTAC cancelled the agents' permits on May 27.
The matter has sparked a debate between Liew and MOTAC Minister Datuk Seri Tiong King Sing.
However, Liew indicated that she was relieved for the delay as it has allowed her ministry to review and improve certain kinks in the Sabah-MM2H initiative.
Under the Sabah-MM2H program, foreigners over the age of 30 who meet the specified terms and conditions can apply.
The visa is valid for 10 years, with the first five years issued initially and the remaining five years granted after a security and minimum stay check.
Applicants must stay a minimum of 30 days per year in Sabah.
Applicants also must present to the authorities that they earn a monthly income of RM10,000 for individuals and RM15,000 for families, purchase a high-rise property valued at RM600,000 or above, and place a deposit of RM150,000 for individuals and RM300,000 for families.
Liew expressed confidence that the RM600,000 property purchase requirement will not inflate real estate prices in Sabah, noting that the five-year property hold condition under the visa's terms could prevent property speculation.
Additionally, visa holders must purchase another property to fulfil the 10-year visa program, she said.
"If they do not follow these conditions, they will be removed from the program," she said.
Liew also emphasized that the authorities will consistently monitor the qualified representatives to ensure they do not sublet their permits.
"I will not tolerate this kind of behavior," she stated, adding that a complaint mechanism has been established for the public to report any violations of the Sabah-MM2H terms and conditions.
The state decided to introduce its own version of the foreign residency program as part to woo more investments into the state.
But experts also see this move as a part of a solution to reduce the number of property overhang in Sabah as many locals could not afford the exorbitant prices due largely to undervalued earnings.
Sabah property prices ranked fourth highest in Malaysia according to a report from the Economic Planning Unit, with the average residential prices averaging RM464,907 in 2021. – The Vibes, June 30, 2024
