Sharp Decline in MM2H Applications Calls For a Review
The Malaysian Government will be reviewng the Malaysia My Second Home (MM2H) visa programme after a sharp decline from last year. The review was called for after the MM2H had a whopping 90% drop in programme applications since the tightening of the criteria in 2021. The MM2H programme is a long-stay visa that allows foreigners to live in Malaysia for up to ten years.
Criteria include a higher minimum monthly income and a longer period of stay in Malaysia before applying. Plus, there is a requirement for applicants to invest in Malaysian government bonds. To qualify, applicants must have at least RM1.5 million (US$338,000) in liquid assets and a minimum monthly income of RM40 000. This was a significant change from the previous requirement, where savings between RM300 000 and RM500 000 were sufficient.
This sent waves of debates among current MM2H visa holders dissatisfied with the updated criteria. The Ministry of Tourism, Arts and Culture and the Home Ministry will conduct the review. The new criteria are expected to be announced in the coming months.
A New Era of Flexibility and Ease of Application
The Malaysian Tourism, Arts, and Culture Minister, Tiong King Sing, announced that the current criteria for the programme will undergo a review. Following a meeting with Home Ministry secretary-general Ruji Ubi, they have decided to make the application process more flexible. Under the new plan, Tourism Malaysia will promote and filter MM2H applications through a one-stop centre. The centre will assist applicants throughout the MM2H pass application process. This is to ensure smooth processing and issuance of the MM2H pass by the Home Ministry or Immigration Department.
Stakeholders in the tourism and property sectors embrace the review of the MM2H programme criteria. Under the current MM2H criteria, the tourism industry and property market saw decreased tourists and buyers, impacting Malaysia’s income significantly. With hopes that the new review will alleviate the strict requirements and encourage more applications, stakeholders anticipate a positive impact on the tourism, property sectors, and overall economy of Malaysia.
Malaysian States Urge Government to Reconsider MM2H’s Criteria
Penang’s State Tourism and Creative Economy Committee chairman, Yeoh Soon Hin, expressed concerns about the hindrance caused by the strict MM2H conditions in attracting long-term foreign residents, especially after the impact of COVID-19. Yeoh stated that if these conditions persist, many expatriates will opt for neighbouring countries with more lenient eligibility requirements, posing a risk of losing potential residents to Malaysia’s competitors.
In September 2021, the Johor sultan also voiced criticism against the tightened MM2H regulations. He urged the government to reconsider the conditions as they could deter foreigners’ interest in choosing Malaysia as their second home. Sultan Ibrahim Iskandar emphasised that Johor faced significant revenue loss from the program’s decline as it was a popular MM2H destination. This resulted in impacting both the state’s economy and existing MM2H participants who might be forced to leave the country
Conclusion
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