Written by Hang Yong
The Malaysia My Second Home (MM2H) programme is a programme which allows foreigners to stay in the country on a long-term basis. It was previously suspended due to the covid19 global pandemic.
Malaysia recently announced the reactivation of the MM2H programme after nearly 2 years of suspension, and it returns with the increase in both financial and temporal requirements compared to the previous MM2H programme.
The below is a list of changes that were announced:
i) The offshore income applicants are now required to have a monthly income of at least RM40,000 from the previous requirement of RM10,000.
ii) The applicants need to deposit and hold RM1 million in a Malaysian Fixed Deposit account for a year, from the previous requirement of RM150,000 (if you are over 50) to RM300,000 (if you are below 50).
iii) Applicants to demonstrate liquid assets worth at least RM1.5 million which the previous was only RM350,000.00/RM500,000.00.
iv) The renewable Multiple-Entry Visa Validity has been reduced from 10 years to now 5 years.
v) Applicant must be at least 35 years old.
vi) There is now a RM5,000 processing fee for the principal and RM2,500 for each dependant.
vii) The applicant must fulfil minimum stay period of 90 days.
The financial hike of the requirements and addition of the criteria will definitely make the whole application process a prolonged and more complex one. In view thereof, there are many who called for the new requirements to be reviewed.
From the economical point of view, research shows that more than 90% of the current visa holders do not meet the new criteria and be likely to be forced to leave Malaysia and, of course, take their money with them. This small group of who did relocate here have contributed billions of ringgit to the Malaysian economy. As such, if they are forced to leave, not only will the country lose billions of ringgit but it will also severely tarnish the image of the programme itself. That would be very sad as it was widely regarded as one of the world’s best retirement programme in the world.
The MM2H programme attracted over 50,000.00 participants over last two decades. The programme helped Malaysia position itself as a country that values international connectivity and foreign direct investment. But all these positive brand equity MM2H spent decades building has now been completely obliterated with the changes of the new MM2H rules.
