The Malaysian Institute of Estate Agents applauds the Ministry of Home Affairs decision to reactivate the MM2H programme which will indirectly help the nation in the economic recovery plan. However, as the Ministry has stated, the revived programme will see some changes on the criteria for foreigners in wanting to make Malaysia their home.
There are currently 57,748 MM2H holders in the country and have so far contributed RM11.98 billion to the economy, and these foreign citizens choose Malaysia as they consider the country peaceful and affordable. IF we are to encourage them to part with their retirement funds and purchase properties, there needs to be perks and incentives, rather than restrictions. MIEA is of the opinion that certain new requirements needs to be revisited.
The quota of not more than 1% of the Malaysian population is acceptable to keep control of the limit of MM2H recipients and the imposition of an increased processing fee and levy is also fair to gain greater revenue for the country. As for the requirement for these long term guests to have a minimum of RM40k per month income from current RM10k per month is seen as too drastic a move. MIEA feels perhaps different classes of applications can be tailored in order to cater to the various types of foreign applicants.
Another deterrent is to have liquid assets of RM1.5 million from current RM350,000 (over 50yrs) & RM500,000 (under 50yrs) a 300% increase is a dramatic change and should be applicable based on the different class of applications as well. Placing fixed deposits of RM1m in a Malaysian bank from current RM150k(over 50yrs) & RM300k (under 50yrs) is a six-fold and three-fold increase which is another dramatic rise. This again should be based on the different class of applications.
These changes will surely discourage foreigners to participate in the programme, as neighbouring countries will be able to offer better options at less higher stakes. Malaysia needs to realise during the pandemic there will be less movement in this space, and we have compete with Singapore or Thailand who will try to woo these high profile foreigners.
- MIEA added that applying this new rule to existing MM2H recipients will be dampening and not practical and that policies needs to be consistent in order to promote confidence. It proposes that all existing MM2H pass holders should not be affected by this new ruling. With the real estate market reeling due to COVID-19 and the lockdown, these sorts of policy changes are not going to help the sector to recover. We would like to propose that the Ministry of Home Affairs also consider looking into different classes of applicants to cater to the various types of foreign investors to attract the right groups of people who can add value to our country.
