MALAYSIA My Second Home (MM2H) consultants have sent suggestions to Putrajaya urging it to ease up on unreasonable conditions for foreigners interested in the programme.

Among their proposals was for the government to lower the age limit, income level, and funds in applicants’ fixed deposit accounts.

Putrajaya has imposed age restrictions for certain visa categories. Some applications are open to retirees, while others have age limits for working individuals or dependants. MM2H applicants are required to prove they earn a minimum monthly income from a stable source, such as pensions, investments or employment.

Applicants are also required to put a certain amount of money in a fixed deposit account in a Malaysian bank. The specific amount can vary and depends on the applicant’s age and financial circumstances.

Malaysia, in its last policy tinkering, increased the deposit requirement from RM150,000 to RM300,000 for those under the age of 50 and raised it to RM1 million for those over 50.

MM2H Consultants’ Association president Anthony Liew Yong Huat proposed the age of applicants be lowered to 25.

This would help attract “young and dynamic individuals” who plan to stay in Malaysia for their children’s education, he said.

“Many of them are technocrats and professionals in the information technology, artificial intelligence and e-commerce sectors,” Liew said.

On the reduction of the income criteria, he said applicants who are retirees might find it hard to meet this requirement because they might not have regular monthly incomes, but they have liquid assets.

“Their incomes are from their investment returns, which come in over a certain period of time. It could be annually or even longer, particularly if they have invested in the stock market.”

The current criteria were “unreasonable and too high”, Liew said, posing a challenge for people and companies like his to attract applicants.

“Depositing RM1 million in a bank does not yield any significant benefit or provide them with a unique status,” he said.

“One of the purposes of MM2H is to encourage foreigners to retire and spend in Malaysia”, but the country was not doing that, he said.

Liew said neighbouring countries with similar programmes have more favourable terms and the applicants are given the “VIP treatment”.

“As for the deposit requirement, many applicants can afford the amount, but they don’t see the benefit.

“Wealthy people would rather invest their money rather than just deposit it for interest.”

Liew said the MM2H could be more attractive and competitive if the deposit requirement was reduced to between RM500,000 and RM750,000.

“We hope the government’s adjustments will truly reflect the market’s outlook. If the policy is relaxed enough to attract applicants, I believe it will lead to a two-fold increase in applications.”

The MM2H programme is not applicable in Sarawak and Sabah.

The two states have immigration autonomy and thus their own programmes.

Sabah’s My Living Hope Sdn Bhd consultant Yah Loi said the October 13 announcement by Prime Minister Anwar Ibrahim on the government’s decision to relax MM2H conditions would not impact Sabah’s programme.

Yah Loi said the MM2H “was practically designed to deter foreign applications”.

“The programme has increased the financial requirements for applicants, such as monthly income, liquid assets, fixed deposits, and visa fees, by at least three times.

“On the other hand, it has reduced the benefits for foreigners, such as residency restrictions and visa durations. For foreigners, the programme has no advantages or benefits.

“Previously, there were no residency restrictions, but now, applicants must reside in Malaysia for at least 90 days each year. Previously, applicants could obtain a 10-year visa, but now, they are only granted a five-year visa.

“As an MM2H agent, I honestly don’t see how foreigners would benefit from applying for the MM2H programme, except for a five-year visa,” Yah said.

She said the key to making the federal programme attractive again was by tweaking the financial requirements to “a reasonable range”.

She also said MM2H should “provide consumption allowances to encourage foreigners to actively spend and invest in our country, like buying property”.

Yah said MM2H participants could be offered reductions in fees or exemptions from certain costs.

“The threshold for purchasing a second or third property could be lowered.”

She said those incentives could draw a massive influx of foreign capital and stimulate real estate and economic development.

The prime minister said relaxing current MM2H conditions would stimulate investment in the country’s financial markets and real estate industry.

On October 17, Tourism, Arts, and Culture Minister Tiong King Sing, said from November 2021 to September 30 this year, 2,164 MM2H applications were received, with 1,905 of them approved.

Tiong said the MM2H was under the jurisdiction of the Immigration Department.

He said his ministry would occasionally review existing regulations in collaboration with the Home Ministry to ensure MM2H remains attractive and competitive. – October 19, 2023.