KUALA LUMPUR – Associations have called on the government to revert the Malaysia My Second Home (MM2H) initiative to the Tourism, Arts and Culture Ministry (MoTAC) to resolve the various issues surrounding the programme.
Malaysian International Real Estate Federation (Fiabci) president Datuk Firdaus Musa said due to the revised conditions and changes in MM2H rules, over 90% of high-net-worth individuals have shunned Malaysia as their second home option.
“Malaysia is a beautiful country and Penang, Johor and Kuala Lumpur have been strong attractions for foreigners to live and spend their money here, spurring the local economy,” he said, adding that returning the programme to MoTAC does not mean the country’s security will be compromised.
Instead, a lot of issues can be settled, he said.
“In the long run, the influx of high-net-worth individuals into Malaysia will help to raise government revenue, especially in terms of tax collection.
“We will continue to work together closely with MoTAC as well as the Home Affairs Ministry to ensure that programme participants follow the rules set by the government,” he said. MM2H is currently parked under the Home Affairs Ministry.
He also said neighbouring countries such as Thailand, Vietnam and Indonesia are aggressively promoting multiple-entry visas and long stays, which prove that such programmes bring economic benefits to their respective economies.
Penang executive councillor for tourism and creative economy Yeoh Soon Hin had previously called on the Home Affairs Ministry to urgently review and revise the new MM2H conditions to keep pace with the changing needs of the economy.
He said the MM2H Consultants Association found a 90% drop in the number of MM2H applicants since stricter conditions were introduced in 2021.
Some of the conditions revised in 2021 require applicants to have a fixed deposit account of at least RM1 million (previously RM300,000), liquid assets of at least RM1.5 million (previously RM500,000), and a monthly offshore income of at least RM40,000 a month, up from RM10,000. – Bernama, May 3, 2023
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