PSYCHO, CRACKO, PURE PETTINESS – BERSATU’S HAMZAH SHOOTS MALAYSIA IN THE FOOT – MM2H MARKET COLLAPSES AS RICH FOREIGN FAMILIES LOOK ELSEWHERE FOR 2ND HOMES – SHARPLY PLUNGING APPLICATIONS TO 10% OF YEARLY AVERAGE – INSTEAD OF PLAYING TO MALAY GALLERY, LOOK IN THE MIRROR – MM2H DOESN’T OFFER CITIZENSHIP OR PASSPORT, ONLY 10-YEAR RESIDENCY – WHY SHOULD FOREIGNERS PAY SO MUCH WHEN THEY BRING MUCH MORE TO THE MALAYSIAN ECONOMY – ‘THEY SPEND ON BUYING PROPERTY, CARS & PRIVATE EDUCATION, MEDICATION, LEISURE & OTHER SECTORS WHICH HAVE SPILLOVER EFFECTS ON THE ECONOMY’ – BUT ALL HAMZAH CAN THINK OF IS ELECTRICITY & WATER BILLS HERE ARE SUBSIDIZED & VERY CHEAP!!?

Business, Politics | April 4, 2023 11:37 am by | 0 Comments

MM2H market collapses after tougher rules imposed

The MM2H Consultants Association says the number of applications has dropped to 10% of the yearly average before the new rules were applied.

The new conditions for the MM2H programme include permanent savings of at least RM1 million and liquid assets of at least RM1.5 million.

PETALING JAYA: Tougher conditions on applicants for the Malaysia My Second Home programme has resulted in a 90% drop in the number of applicants, the MM2H Consultants Association said.

Its president, Anthony Liew, told FMT the average number of applicants from 2017 to 2019 was 5,200 a year. “Right now, I believe it’s just about 10% of that. The main issue is the strict conditions,” he said.

The MM2H programme is aimed at attracting long-term foreign residents, but new conditions were introduced in 2021 after a freeze during the Covid-19 pandemic.

Applicants are now required to have permanent savings of at least RM1 million and liquid assets of at least RM1.5 million. Previously, they only needed savings of between RM300,000 and RM500,000.

They must now also show an offshore income of at least RM40,000 a month, up from RM10,000.

Liew said the income and savings requirements were among the major reasons why the number of applications plunged. He said neighbouring countries did not set such conditions.

Although foreign retirees might have sufficient liquid assets, they might not always have sufficient monthly offshore income to qualify for MM2H.

“We propose changing it to RM600,000 or below,” he said. “We need to encourage the successful applicants to stay in Malaysia and spend on buying property and cars, private education, medication, leisure, and other sectors which have spillover effects on the economy.”

Liew said there are also fewer agencies helping promote and help foreigners apply for the programme as they have been unable to sustain operational costs, with some agencies working on a part-time basis.

One MM2H consultant who preferred to remain anonymous said he has seen a “tremendous decrease” in applicants.

He said he submitted 277 applications in 2019, and 108 applications before the programme was suspended in July 2020. When the programme resumed in October 2021, there were zero applications, he said.

He was not easy to get clients, because of the stricter conditions, and the damage to his network caused by the pandemic.

Last year, the consultant submitted eight applications and has sent in three so far this year.

“The requirements are too high,” he said. “If the applicants can meet them, they will not choose Malaysia as they have better options.”

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