THE Malaysia My Second Home (MM2H) programme brought in RM40.6 billion from 2002 to last year, with RM5.5 billion directly from property purchases, said MM2H Programme Agents Association president Lim Kok Sai.

The foreign residents’ scheme approved visas for 21,841 people in the same period.

Lim said these visa holders’ investments are most notable in the property sector, with apartments, villas and townhouses the top choices.

Last year alone, successful applicants bought 500 units with a total value of more than RM600 million.

Most MM2H visa holders prefer living in Kuala Lumpur, followed by Johor, Selangor, Penang and Malacca.

They also bring revenue to Malaysia in terms of bank account deposits, medical treatment, tourism and purchases, such as cars and furniture, Lim told The Malaysian Insight.

“Their spending can (indirectly) create jobs in the country.”

Of the 6,276 applications received last year, 3,339 were successful, and this group contributed RM2.8 billion in revenue, he said.

Chinese nationals made up the largest group among successful applicants at 1,495, followed by South Koreans (449) and Japanese (223).

The remaining MM2H visa holders were from Hong Kong, Bangladesh, Britain, the US, Taiwan, India and Australia.

For this year, Lim is expecting 5,000 applications, with a potential revenue of RM4 billion.

According to feedback from the association’s agents, the main reasons foreigners take up the MM2H visa are to invest in real estate in city areas, enrol their children in Malaysia’s many private institutions, and retire in the country, he said.

Association deputy chairman Kurt Tan said there is an increasing number of applicants from Hong Kong, followed by South Korea and India.

He noted the growing competition from neighbouring countries like Thailand and the Philippines, which have launched their own “silver hair”, or retirement programmes to attract foreigners, as well as real estate investments.

“Malaysia still has the advantage in terms of language, whether it is English, Chinese, Malay or Tamil. Our cost of living is low, our people are friendly, there is political stability and no natural disasters.”

Association vice-president Anthony Liew, however, said Malaysia lags behind Thailand and the Philippines when it comes to the speed of visa approval.

The latter two countries approve visas under their retirement programmes.

The MM2H visa-application process can take up to nine months, said Liew.

“It used to be quicker, within two months. But it takes six to nine months now. Thailand and the Philippines can complete processing and approval in two months.”

MM2H also has to deal with the false perception – especially in China – that successful applicants will get a red Malaysian identity card meant for permanent residents.

Lim said agents have to frequently explain to Chinese applicants that this is not true and the MM2H visa is for a 10-year stay and renewable. – June 7, 2019.