The Malaysian International Chamber of Commerce and Industry (MICCI) said MM2H residents were “hard pressed” to meet the new rules.

Many, it said, had packed up and left while others were in the process of or at least considering liquidating their assets and moving elsewhere.

“When the country is in need of capital for its post-pandemic recovery, there will be a significant outflow of funds from our market as these residents had to deposit funds and purchase assets to qualify for the old MM2H (programme),” MICCI said in a statement.

It was reported that among the new requirements for MM2H participants, as announced by the home ministry, include permanent savings of at least RM1 million and a declaration of liquid assets of at least RM1.5 million.

Previously, participants needed to have savings of between RM300,000 and RM500,000.

An MM2H holder must also now have an offshore income of at least RM40,000 a month, up from RM10,000.

MICCI said many of its foreign members and their associates felt deeply betrayed, a perception that had been spread to potential MM2H applicants.

“Malaysia has already been tagged with being ‘flip-flop’ on top of the kleptocrat stigma. It does not inspire investor confidence no matter how attractive the sales pitch for the Digital Investment and FDI (foreign direct investment) programmes.”

MICCI also said it did not help that the programme now came under the immigration department’s purview, which it said was “not an agency that is tuned to being welcoming or attracting”.

Earlier today, Donal Crotty, the general manager of the Irish Chamber of Commerce in Malaysia, labelled the new rules “disastrous” for the country and called for a review before October, when they are due to come into effect.

He said most MM2H holders would not be able to meet the income and asset requirements, and foresees them packing up and leaving.