Aside from the major underlying changes – noticeably the bump in financial requirements of RM40,000 monthly income or equivalent (RM10,000 previously), and RM1,500,000 in liquid assets (up to RM500,000 previously) – other factors contributing to the drastic drop in applicants are likely at play.
Much like other economies globally, the financial health of potential expatriates and retirees is significantly weaker post pandemic, battered by growing inflationary pressures and the looming possibility of a global recession.
Even the very concept of residency has evolved rapidly thanks to Covid-19, resulting in the exponential growth and rise in the number of remote workers and digital nomads.
Furthermore, other countries are also offering attractive alternative programmes and tax incentives to encourage foreigners to relocate to their shores. For a fairer comparison, this article will assume expats and retirees prefer the tropical vibes and lifestyle of Southeast Asia, leaving out popular choices such as Mexico, Latin America, the Caribbean, and Europe.
Regional options
With visa categories labelled “wealthy global citizens” and “wealthy pensioners”, the Thai Long-term Resident visa scheme unapologetically looks for “high-potential” foreigners, which is perhaps what the revised MM2H programme was trying to emulate.
It is yet to be seen if both will succeed in trying to punch above their weight class.
Arguably using a more egalitarian approach of lower-entry requirements to cast a wider net, the Philippines and Indonesia are also competing directly for both Malaysia’s future applicants and even current MM2H residents who, until last year, were likely not looking or even considering better alternatives.
The Philippines Retirement Visa is open to the 50-and-over crowd with a US$10,000 (RM44,500) fixed deposit and a qualifying pension of US$800 monthly or US$1,000 for couples.
For those who do not have pensions, the fixed-deposit minimum doubles, and in fact increases to US$50,000 for 35-49 year olds, both without a monthly-income requirement.
Meanwhile, looking to join 44 countries that already offer various forms of a digital-nomad visa, Indonesian tourism minister Sandiaga Uno recently announced that the country will be granting similar five-year visas with no taxes on any income derived outside of the country.
Although no minimum monthly income requirements have been announced, the lengthy validity term and tax exemption are already quite attractive.
S-MM2H
Still in the running, Malaysia has one other horse left in the race: the Sarawak-Malaysia My Second Home (S-MM2H) programme, with conditions as follows:
- those aged 50 and above must have either a fixed deposit of RM150,000 (RM300,000 for a couple), or a pension/overseas income source of RM7,000 (RM10,000 for a couple);
- those ages 40-49 must have an investment in property (RM600,000 in Kuching, RM500,000 in other areas), or children enrolled in an educational institution in Sarawak;
- those aged 30-39 must have children enrolled in an educational institution in Sarawak.
With only a 15-day annual residency requirement within the state, S-MM2H residents have the choice to live anywhere in Malaysia over the 10-year term.
As the competition moves forward, applicants will inevitably vote with their wallets to select the country that is easiest to call home.
Reg Ching is a walking quadriplegic (OKU), digital business consultant, medical cannabis advocate, and cryptocurrency enthusiast. Follow his journey at regching.com.