GEORGE TOWN – Langkawi travel trade players are calling for the federal government to lower the conditions imposed for Malaysia My Second Home (MM2H) programme applicants.
Cruise services business owner Datuk Alexander Isaac has urged the tourism and home ministries to offer a cost-effective programme that reflects the current global economy post-pandemic.
“Conflicts, supply chain issues, inflation, and food and medicine shortages have lowered disposal incomes for many.
“With it, investors, including retirees, have become cautious about relocating,” he told The Vibes.
He reiterated that screening of applicants must be detailed to ensure they are not involved in criminal activities, join local politics, or work, although they should be allowed to invest in local properties and businesses.
He added that the majority of the estimated 42,000 MM2H visa holders are keen to retire peacefully while enjoying the tourist attractions in the country.
Meanwhile, travel agent Eric Sinnaya urged the authorities to revise the financial conditions imposed on MM2H, as the current rates are too steep for the majority of applicants.
He added that Malaysia as a mid-income country should tap into applicants who are also in the middle-income category, not just the super-rich.
“For example, a MM2H couple would bring spillover economic benefits when their family and extended family members and friends come to visit them in Malaysia. They would likely stay for at least three days.
“This is money for our economy. We should not just depend on the traditional mode of tourism.”
Recently, the MM2H Consultants Association released a report that new conditions placed on applicants have seen a 90% drop in applications.
Association president Anthony Liew was reported as saying that he submitted 277 applications in 2019, and 108 applications before MM2H was suspended in 2020.
When the programme resumed in October last year, there were zero applications.
Applicants under the new guidelines are compelled to have permanent savings of at least RM1 million with liquidity assets of at least RM1.5 million. They must now also show an income of RM40,000 a month, up from RM10,000.
Previously, they only needed savings of between RM300,000 and RM500,000.
Ahmad Pishol Isahak, a former Kedah Malaysian Association of Tours and Travel Agents chairman, said even if the government lowers the requirements and with proper enforcement, none of the participants can easily abuse their MM2H visas.
Last year, Penang tourism exco Yeoh Soon Hin had urged the federal government to revise the guidelines to retain Malaysia’s competitiveness in international markets and to avoid long-term economic losses.
“Malaysia should stop making international headlines for all the wrong reasons. The rebooted MM2H programme will tarnish our long-standing image of hospitality, potentially leading to a plunge in foreign investments and an exodus of expatriates, who are contributors to our economy.
“I understand there are visa holders who abuse the MM2H programme, but the federal government needs to review and evaluate them on a case-by-case basis to ensure proper applicants are approved. It is unfair to penalise all applicants with these demanding requirements.” – The Vibes, April 6, 2023.
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