Malaysia to Ease MM2H Conditions Amid a 90% Drop in Applications

The Malaysian flag is a symbol of leadership, symbol of honour, dignity and sovereignty of a country.

 In the recent tabling of Budget 2024 at Dewan Rakyat in Kuala Lumpur, Prime Minister Datuk Seri Anwar Ibrahim announced that the government has agreed to relax the existing conditions for Malaysia My Second Home (MM2H) applications in order to increase tourist and foreign investment arrivals. The move is likely to boost investment activities in the domestic financial market and property sector.

This assurance comes two years after the previous government stated that MM2H would return after a one-year hiatus, but with a more stringent threshold and financial requirements. The stricter rules were implemented in order to attract high-quality participants who could positively contribute to the country’s economic growth, as well as for security reasons, as participants were believed to be using Malaysia as a “transit” point to carry out undesirable activities.

As a result, applicants stayed away from Malaysia—government data released in April revealed a 90% reduction in applications as other nations, like Thailand, made their programs more appealing to foreigners.

What is Malaysia My Second Home Programme?

The Malaysian government introduced My Second Home (MM2H) as a mechanism for non-Malaysians to retire and reside in Malaysia for an extended period of time.

The MM2H scheme grants successful candidates from all over the world a renewable multiple-entry visa. It was a scheme initiated by the Ministry of Tourism and Culture and currently administered by the Ministry of Home Affairs designed to promote positive immigration to the benefit of both Malaysia and future potential expatriates.

MM2H must be specified precisely, to minimize confusion

Following the dismal response, the government stated that it will review the conditions and suggested that the rules be relaxed. However, in June of this year, Home Minister Datuk Seri Saifuddin Nasution Ismail stated that the MM2H requirements had to be tightened because some successful candidates were discovered to be involved in spying activities. His statement raised questions about whether the rules would indeed be relaxed.

While the uncertainty persists, interested applicants are skirting the strict rules for entering the peninsula by applying to enter through the Sarawak-Malaysia My Second Home program, which has less demanding requirements, so that successful applicants can still come and reside on the peninsula.

A different angle to the famous Petronas Twin Tower in KL, Malaysia.

Sarawak’s ‘attractive’ MM2H program is producing results

According to Sarawak tourism, creative industry, and performing arts minister Abdul Karim Rahman Hamzah, there has been an increase in applications as their conditions are more attractive in comparison to Putrajaya’s MM2H.

Applicants for long-term residence in Sarawak are required to place a fixed deposit of RM150,000 (RM300,000 for couples) and possess a monthly offshore income of RM7,000 (RM10,000 for couples), while the federal government’s requirements are that applicants must have assets of RM1.5 million, a monthly offshore income of RM40,000, and a RM1 million fixed deposit.

Sarawak, which enjoys a level of autonomy over immigration, introduced its version of the MM2H programme in 2007 and did not adopt the revised Putrajaya criteria in 2021.

Since 2007, Sarawak has approved a total of 2,093 applicants. Last year, it approved 411 applications, a 1,422% increase compared to the year before. For the first eight months of 2023, it approved 406 applications.[1]

Conclusion

While the recent announcement to ease MM2H requirements is a step in the right direction, it is hoped that all parties will speak in unison and that there will be no ambiguity on policies to confuse applicants.

We require clarity; else, affluent groups will spend their money elsewhere. If spying is still an issue, the vetting procedure, not the qualifying criteria, should be tightened.

[1] https://www.freemalaysiatoday.com/category/nation/2023/08/14/sarawaks-attractive-mm2h-programme-bearing-fruit-says-official/