KOTA KINABALU – Following the federal government’s widely unpopular tinkering of the Malaysia My Second Home’s (MM2H) rules, the Sabah Law Society said that the state has the legal right to handle the programme on its own.
Its president, Roger Chin, said that the scheme, which allows foreigners with capital to settle in Malaysia while contributing to the economy, can go a long way to attract investments into Sabah if the state sets its own terms and conditions.
He said Sabah should be given the right to handle the MM2H programme within its borders, in line with the federal constitution stating that Sabah and Sarawak have the power to control entry and residence of non-Sabahans and non-Sarawakians.
“Sabah’s very own MM2H programme on its own terms and conditions could attract those who may no longer qualify under the new rules set under Peninsular Malaysia’s programme,” he said in a statement today.
“A shift in the Sabah government’s focus of MM2H being primarily tourism-driven to being investment-driven could reap untold benefits for Sabah to encourage economic growth and prosperity propelled by foreign investments.
“Placement of the MM2H programme under the purview of the Industrial Development Ministry (MID) away from the Tourism Ministry could be the catalyst to achieve this,” he said.
Chin added that the Sabah Law Society stands ready to assist the state government if required.
He said Sabah’s very own MM2H could contribute to the state economy, in line with the Sabah Maju Jaya (SMJ) development plan launched by Chief Minister Datuk Hajiji Noor, which intends to draw external investments to boost development.
“Sabah and Sarawak have the power to control who can enter their borders to ensure that only people who can contribute positively to the growth of the states, and are not deemed a threat to law and order, are allowed to enter and reside in the states,” he said.
“Accordingly, these special interests and safeguards allowed Sarawak to have its own MM2H programme under its Sarawak Tourism Board, which has different requirements and incentives from the one implemented in Peninsular Malaysia.”
Currently, the MM2H is promoted by Tourism Malaysia and the Immigration Department to allow foreigners to stay in Malaysia for 10 years.
Foreigners who fulfil certain criteria may apply, and a successful applicant is allowed to bring a spouse, an unmarried child under the age of 21, and parents who are more than 60 years old.
Approval of applicants and issuances of visas are made by the Immigration Department.
Since the programme started in 2002, 40,000 applications have been approved. It is reported to have stimulated the economy, with a cumulative gross value-added income of RM11.89 billion from 2002 to 2019.
The scheme, which was suspended for about a year, will be restarted next month with sweeping changes, including a significant hike to the income criteria, and visas now valid for only five years, instead of 10.
Under the new rules, foreigners must prove they have liquid assets worth RM1.5 million. They must also have a monthly offshore income of at least RM40,000 compared with RM10,000 previously.
The announcement of these changes has elicited widespread astonishment and disappointment, especially among long-staying MM2H holders who have already invested heavily to settle down with their families in Malaysia.
Chin said that new conditions for renewal would put existing MM2H holders at a disadvantage as it disappoints “justified expectations”. – The Vibes, September 2, 2021
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