We have more to lose than gain.
This is the simple message if the new Malaysia My Second Home (MM2H) programme requirements are implemented.
“The new requirements will greatly set us back in terms of the nation’s economic regeneration and drive a massive exodus of existing visa holders and future applicants.
“The significant raise in financial commitments for the programme is ridiculous in light of the nation’s political turmoil and economic downturn, making it rather challenging to fulfill especially when the global economic climate remains in the backwater,” said state exco for Tourism and Creative Economy, Yeoh Soon Hin in a press statement.
He added that Malaysia is amongst the premier destinations for expats and foreign retirees, made possible via the MM2H programme.
“However, this new set of requirements featuring a halved visa validity and a substantial bump in fixed deposits, offshore income and liquid assets will encourage applicants to pick other visa schemes with friendlier requirements, especially our neighbouring countries such as Thailand and Philippines.
“The federal government’s intention to attract high net-worth foreigners to propel Malaysia’s economy will be a far-fetch as the programme itself is no longer attractive to applicants.
“This new requirement is designed to appeal to the rich, which contradicts Malaysia’s social and economic landscape. Foreigners generally don’t come to Malaysia for an opulent lifestyle. They choose us for our affordable cost of living, multicultural community and tropical climate,” he said.
According to the Ministry of Home Affairs, it was reported that the MM2H programme has garnered a cumulative income of RM 11.89 billion (US$2.8 billion) from 2002 to 2019, through fee and visa charges, purchase of properties and vehicles, fixed deposits, and monthly household expenditures.
Yeoh anticipates that the new requirements harm Penang’s economic development as it is amongst the forerunners for MM2H.
“If the federal government wants to achieve its ultimate goal of economic reboot, the MM2H programme needs to be more accessible. Lawmakers needs to apprehend that accessibility draws people in and exclusivity drives people out.
“With our political unrest being a concern to expats, this new requirement literally dampens the programme and shuts the door for MM2H. I find it hard to believe that the Federal Government spent one year planning and sending MM2H to death,” he added.
He therefore urged the authorities to heed the advice of industry players, existing and potential applicants, and to eventually reconsider loosening the bizarre requirements of MM2H.