PUTRAJAYA’S new Malaysia My Second Home (MM2H) requirements have led to a dip in interest in the programme, as predicted by MM2H agents.

Japanese MM2H consultant Ryuji Ota said the requirements, which require applicants to have a higher fixed deposit in the country and higher income threshold, have been bad him.

Only seven of his countrymen enquired about the programme since the implementation of the new requirements in October, but these enquires did not translate into applications, he added.

“One or two (interested parties) said they will prepare the documents, but I do not know whether they will actually apply,” he told The Malaysian Insight.

“Others did not get in touch after listening to the explanation about the new requirements.”

The Lifestyle Coordinator (MM2H) Sdn Bhd director has been running his consultancy firm for more than nine years, and 90% of his clients are Japanese.

“Malaysia is a practical choice as a second home after retirement for Japanese people, but the new requirements prevent them from meeting the threshold.”

MM2H applicants now need to have RM1 million fixed deposit in Malaysia and proof of overseas income of at least RM40,000 a month.

Ota said: “If it is meant to be a retirement plan, why do applicants need to prove an overseas income of RM40,000 a month?”

“It is hard to obtain such proof of income after retirement.”

He said he did not earn a single sen and had to lay off staff during the height of the Covid-19 pandemic.

And this was before the new requirements were implemented, he added.

Though he is cautiously optimistic, Ota is wondering how he can continue his business in the current climate.

Putrajaya has been urged to reconsider the new requirements last year, but there has yet to be a response.

The MM2H Consultants Association (MM2HCA) said out of 44 applications between October last year and April 8 this year, only 28 were approved.

Previously, applicants needed RM150 fixed deposit for above-50s and RM300,000 for under-50s, as well as proof of overseas income of only RM10,000.

Another new requirement is for participants to stay in the country for at least 90 cumulative days to ensure they contribute to the economy.

BOSL Planning (MM2H) Sdn Bhd owner Raja Ummi Hairima Raja Hamdan said her consultancy firm received zero enquiries.

There were two Japanese applicants but they eventually cancelled their applications, she added.

She said though her firm still exists, she is no longer actively working.

“No new customers, and those I had have asked me to cancel their visas.”

The Tourism, Arts and Culture Ministry site shows that there are 426 companies registered as MM2H consultants.

But MM2HCA president Anthony Liew says many are in “hibernation” and only about are 220 still active.

Even active firms receive only a handful of enquiries, he added.

He said consultants handled about 6,000 applications a year before the pandemic.

“I was processing several applications a month (before), but they just trickle in now. One a month or no consultation at all.”

Association members said the biggest dip in interest is seen among Japanese and South Koreans.

Liew urged the government to re-examine the rules as the programme brought in revenue in the past.

The Home Ministry sets the requirements.

Home Minister Hamzah Zainuddin earlier this year said the Immigration Department received 211 applications, mostly from Chinese nationals, as of February 28.

Twenty-six applications were approved, one was rejected, while the remainder are still being processed as of March 10. – June 20, 2022.