Malaysia

Shifting MM2H programme goalposts will drive foreigners away, say industries

Groups warn policy revisions will collapse programme, which has brought in RM11.89 bil to economy

Updated 5 years ago · Published on 21 Aug 2021 7:30PM

Shifting MM2H programme goalposts will drive foreigners away, say industries
Industries Unite and MM2H Consultants Association say that it would be unfair to enforce the new conditions on foreigners as many MM2H holders have sold their properties in their home countries while contributing to the economy here. – KLIA pic, August 21, 2021

KUALA LUMPUR – Two groups advocating the Malaysia My Second Home (MM2H) programme have taken the government to task over a slew of changes to the initiative that they believe will drive away foreigners looking to settle in Malaysia. 

In a joint statement, Industries Unite (IU) and MM2H Consultants Association (MM2HCA) described the revised terms as shocking, drastic, and unreasonable, adding that some of the conditions are downright unacceptable. 

IU is a coalition of 110 Malaysian small and medium enterprise associations, institutions, and trade bodies.

Among their harshest criticism is that the policy will subject existing MM2H holders to all the new requirements.

The groups said it would be unfair to enforce the new conditions on them as many of the holders have sold their properties in their home countries while contributing to the economy here. 

“It is unethical to subject them to the new requirements. This shifting of the goalposts will reduce foreigners’ confidence in our government. Drastic changes will tarnish our image and will make us the laughingstock of the world.

“Many expatriates under the programme are convinced that the government is looking to remove them from the country in light of the new requirements and conditions announced.” 

The statement noted that since its inception in 2002, MM2H has brought a total revenue of RM11.89 billion to the Malaysian economy, but warned that the new terms could be the downfall of the programme. 

“Many MM2H holders have sold their properties in their home countries and are living harmoniously with Malaysians, considering Malaysia their home. They spend freely in Malaysia and have contributed to the economy of this country,” they said. 

“It would not be fair to ignore their contributions and subject them to the new rulings. MM2H is an economically driven programme.”

Home Ministry Secretary-General Datuk Wan Ahmad Dahlan Abdul Aziz had on August 11 announced that MM2H will be reintroduced with improvements to policies and application conditions so as to balance its security and economic aspects

The programme, which ceased in 2019, is set for reactivation in October. 

Of all the changes announced, IU and MM2HCA said only the requirement to vet applicants for criminal records is agreeable. 

Among others, the groups said the increased offshore income requirement from RM10,000 to RM40,000 is unacceptable, noting that neighbouring countries are offering similar programmes with much lower income conditions. 

They said the increased fixed deposit for a MM2H holder from the current RM300,000 to RM1 million is also unreasonable, considering the present global economic landscape. 

The requirement for RM1.5 million in liquid assets is also baffling, they said, as rich investment-savvy applicants would instead have their funds invested in high-yielding products. 

IU and MM2HCA also poured scorn on the revised annual RM500 visa fee from RM90, and the staggering RM5,000 processing fee for the main applicant and RM2,500 for each dependent, amounts they described as ridiculous. 

Additionally, they said the 90-day minimum stay requirement for a five-year visa – from 10 years previously – is also unattractive. 

“We sincerely hope the government will reconsider the terms and conditions of the MM2H programme,” they said, while calling on the government for further discussion . 

The Vibes had previously reported expatriates as saying that they are convinced the government is looking to remove them from the country with the enforcement of the new requirements. – The Vibes, August 21, 2021

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