The new rules coming with the reinstatement of the Malaysia My Second Home (MM2H) programme may drive away rich foreigners, who will likely look elsewhere to retire.
In fact, even current participant to the programme, who are now happily settled in the country, may pack up and leave, reported The Sun Daily.
Introduced in 2002, the MM2H programme was suspended in August 2020 due to the COVID-19 crisis, before the government announced that it will be reactivated in October 2021. Check out the latest MM2H rules here!
In a post on investor.com, J. Andrew Davison – an MM2H participant living in Kuala Lumpur for several years now – said the tightened rules may drive away over 90% of current participants as they could no longer meet the new requirements, according to The Sun’s report.
Under MM2H, a foreigner may be given a 10-year renewable visa to live in Malaysia, subject to certain conditions. Among them is having a monthly offshore income of RM10,000 as well as a bank balance of RM500,000.
However, the government said the rules relating to the programme will be tightened once it is reinstated in October.
Under the new rules, an applicant should have a monthly offshore income of RM40,000 and a fixed deposit of RM1.5 million.
Previously, an applicant aged below 50 must have RM300,000 in the bank, while those 50 years old and above should have RM150,000. The sum have been increased to RM1 million under the new rules for both categories.
And while applications were free of charge under the previous rules, applicants are now required to pay a processing fee of RM5,000, with accompanying family members paying RM2,500 each.
Those already living in Malaysia under the old rules will have to prove that they meet the new requirements once they renew their visas.
Lee Chee Keong, a veteran consultant for the programme, said the new rules are “ludicrous”, noting that the MM2H programme had worked well for 18 years.
He revealed that stakeholder have appealed for a review of the proposed changes, but such appeals fell “on deaf ears”.
“Why make them pay more now? Malaysia is not the only country where they can retire to,” he told The Sun Daily.
Since its launch, the programme is estimated to have brought in about RM3.8 billion per year on average to the Malaysian economy, according to Lee.
The new regulations will only lead to a reduction in the MM2H business, he said, adding it will be a loss for Malaysia.
Deputy Chief of Mission at the Japan Embassy in Malaysia Kaname Araki believes the new rules will have a significant influence on current residents and potential applicants from all countries.
“Japanese nationals like to stay in Malaysia because of the unique culture, lifestyle and hospitality displayed by the people,” said Araki.
Araki shared that members of Japanese clubs and associations within Kuala Lumpur have expressed concern over the new requirements, with some considering plans to relocate elsewhere.
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