MORE than 4,000 Malaysia My Second Home (MM2H) applications have been left hanging since September, said agents for the programme that encourages foreigners to live in the country when they fulfil certain conditions.

Delays in processing applications started in the third quarter of last year but there is no official word as to why, other than a change of procedure requiring approvals from the Home Ministry.

“The delays began around September,” MM2H Agents Association president Lim Kok Sai told The Malaysian Insight.

The association has 235 members, who assist foreigners to apply for MM2H visas, which are a multiple-entry social visit pass. Foreigners may also own homes costing a minimum of RM500,000. 

“According to our members’ reports, the number of applications accumulated since last year has now exceeded 4,000.

“Many of our agents’ professional qualifications are being questioned while many applicants also question our agents’ integrity,” said Lim.

The MM2H applicants are only pacified after the agents bring them to meet the government officers in charge of the programme, he said.

But this resulted in cancellations although the applicants still have to pay a portion of the agents’ fees.

“The agents can only return part of the fees (to the applicants) because they had already incurred costs processing the applications.”

According to Lim, the MM2H process used to take four to five months from the date of submission.

“But some of these applications have been pending for nine months now,” he added.

Mounting losses

Lim said Malaysia stands to lose up to RM100 million a year because of the delays.

“The delays mean that private consumption, remittances and purchase of electric car services and travel agencies will also be lower.”

Lim said according to the Tourism Ministry, the final approval for MM2H applications are now under the Home Ministry.

According to Lim, only 300-400 applications were approved from June 2018 while another 4,000 are still pending.

“The majority of the 4,000 applications are from Japan, South Korea, Bangladesh, China, India and the United Kingdom.

“Since the beginning of September last year, no visa has been approved. The association has written to the Home Ministry,” he added.

Applicants are interested in Malaysia because of the educational opportunities, he said.

“Some of the MM2H applications have since been withdrawn and (the applicants have) moved on to getting student visa for their children. 

“A student’s mother will follow the child leaving the father to await the MM2H visa approvals,” said Lim. 

At present, the agents are still submitting the applications although there are no approvals. 

An agent, Anthony Liew, said the government held a meeting with agents in January to inform them that the approval process is now conducted by the home minister.

“There were no explanations given for the new changes. We still have to continue to process the applications, whether they will be approved or not.”

According to the MM2H website, applicants under the age of 50 must show that they have at least RM500,000 in current assets and a monthly income of RM10,000.

Those above 50 must prove that they have at least RM350,000 in assets while retired applications must show that they receive government pensions of at least RM10,000 per month. 

A total of 4,545 Japanese applied for MM2H from 2002-2017 with the number doubling following the Fukushima Daiichi nuclear plant incident in 2011.

In 2011, there were 423 applications from Japan, 2012 (816) and 2013 (739). By 2014, the number of applications dropped to 428. – February 25, 2019.