NEW STRAITS TIMES. 29TH SEPTEMBER: MM2H was primarily targeted towards expatriates to continue their residence so that their skills and expertise may be used towards the country’s growth and development.
THE new conditions announced by the government for the Malaysia My Second Home (MM2H) programme have been met with strong objections by stakeholders and industry players.
Sultan of Johor Sultan Ibrahim Sultan Iskandar was the latest to voice concern and had called on the federal government to review them.
One, it requires applicants to have permanent savings of no less than RM1 million in their fixed deposit account as opposed to the previous RM150,000 for applicants aged 50 and above, and RM300,000 for those below 50.
Another condition entails that the minimum amount for offshore income earned by the applicants, which was previously RM10,000 per month, shall now be increased to RM40,000.
While we understand the government’s efforts in being more selective, one vital question is: should they be implemented when Malaysia’s economy is at its most vulnerable?
We need to consider whether Malaysia even holds up to their standards to be a destination of choice. Furthermore, Thailand, Indonesia and the Philippines, through their own programmes, provide conditions that are far less financially straining.
MM2H was primarily targeted towards expatriates to continue their residence so that their skills and expertise may be used towards the country’s growth and development.
Although not directly related to property ownership, they can be the tool for the recovery of the housing industry, either through sale and purchase or by filling the unoccupied homes through rental or lease instruments.
The surge of these participants in some urban areas have indeed increased the need for private education centres, hospitals and also tourism centres.
Surely, any factor that could possibly boost our country’s economy should be encouraged.
The longer we neglect these factors, the sooner we will see the increase in the number of businesses going empty, homes and condominium complexes becoming derelict, and entertainment centres and tourist attractions, such as studios and theme parks, being forced to shut down despite plans for development showing great potential in improving the socioeconomic status of Malaysians.
We have also noticed a recent trend of residents vacating their properties; a rather common practice by foreigners living in high-end housing areas like Iskandar Puteri, Johor.
If this persists, we will lose the interest from foreigners to acquire property there despite the area initially being sought-after in the MM2H programme.
I vividly recall in 2018 during a visit with a local developer to South Korea, where there were several Korean purchasers — from the grandfather, to the father and their third generation — all of whom were eager to buy condominiums simultaneously as they wanted their children to learn the English language in Malaysia.
It is deeply concerning that the implementation of these new conditions at an inopportune time, particularly in relation to the increase in the financial amount needed for the MM2H programme may send the wrong signal to those genuinely interested to come here.
The conditions may also pose a great inconvenience for existing participants. Some may have no choice but to leave the programme altogether.
Of course, there is a need to control the “influx of foreigners” in our country.
However, the type of foreigners who have become a significant problem are those who come in illegally, and those who come in to work and then disappear.
On the other hand, those who come into the country through legal methods and have registered through the purchase of real estate or under the MM2H programme should not, for the time being, be categorised in the same way as illegal foreigners.
The Immigration Department can regulate the approvals given for the MM2H programme. If they fear the programme is being monopolised by any one country, proper supervision can ensure they are from a variety of countries and represent diverse cultural backgrounds.
More importantly, trivial bureaucratic matters should be kept at bay so our country continues to appeal to foreigners and the MM2H programme becomes an attractive choice for them.