In one of its final acts in government, the Perikatan Nasional-led administration announced the reintroduction of MM2H but with some controversial changes. There are now 10 new criteria that participants have to meet in order to qualify for the MM2H programme.
FMT takes a closer look at the MM2H, the benefits of the programme and the latest changes to it.
What is MM2H?
MM2H is a visa scheme that allows foreigners who fulfil certain criteria to buy property and reside in Malaysia on a long-term basis.
The scheme grants a renewable 10-year multiple-entry visa for successful applicants from around the world. The visa gives them the freedom to enter and leave Malaysia whenever they wish, with no minimum stay requirement.
It has been reported that MM2H has contributed some RM11.89 billion to the economy between 2002 and 2019, mainly through visa fees, property purchases, personal vehicle purchases, fixed deposits and monthly household expenditures.
What’s new?
Although the programme has gone through numerous reviews since it was first introduced in 2002, the most recent review sees stricter rules and criteria for the existing MM2H holders and potential holders.
They include the following:
- the number of MM2H pass holders (principal and their dependants) will be capped at 1% of Malaysia’s population;
- MM2H holders must stay at least 90 days (cumulative) in a year;
- they must have an offshore income of at least RM40,000 a month, up from RM10,000 per month previously;
- they must now have permanent savings of at least RM1 million and a declaration of liquid assets of at least RM1.5 million. Previously, they only needed to have savings of between RM300,000 and RM500,000;
- the tenure of the renewable multiple-entry visa has been reduced to five years from 10 years previously;
- the renewal fees for the visa has been increased from RM90 a year to RM500 a year;
- the processing fee for MM2H applicants will now be RM5,000 for the principal participant and RM2,500 for each dependent. Previously, there was no processing fee.
What do MM2H holders say?
Yoshiyuki Abe, a MM2H pass holder since 2018, hoped the new government would exclude existing holders from the new rules, saying only the 90-day stay requirement is reasonable.
“The government may do whatever they want for new applicants because they will always have an option not to apply for MM2H and stay in their home country. However, the existing holders have already established a life here in Malaysia. We are not vacationers. We moved here because Malaysia offered us a second home.
“We shut down everything in our home country to live in Malaysia. Then, we are hit by these new stricter rules,” Abe said.
Another pass holder, Fumihiro Seto, said the new rules were “impossible”.
“I just can’t take this. I can’t afford, can’t renew, can’t stay and can’t negotiate. Honestly, there is only one requirement I can meet, which is the 90-day stay requirement in a year,” Seto said.
A counterproductive move
MM2H Consultants Association (MM2HCA) president Anthony Liew said the stricter rules would scare off potential clients amid a global economy reeling from Covid-19.
“There are so many other countries that foreigners can choose instead. Some of my members’ potential clients have told them that if they had a monthly income of RM40,000, they would go to other countries.”
Economist Carmelo Ferlito said the new requirements meant the MM2H will become less competitive compared with similar programmes in the region.
“The thresholds are simply too high. What has Malaysia got to offer to the super-rich when compared with places like Phuket, Bali or even big cities in the West?
“I guess with these new criteria, the programme will be a total failure,” Ferlito said.