Frozen since last year, the programme was revived in August with 10 new conditions.
In his winding-up speech on the 12th Malaysia Plan yesterday, home minister Hamzah Zainudin said existing MM2H programme holders would only be tied to two of the new conditions – a fee increase from RM90 to RM500 a year, and a requirement to stay in the country for a minimum of 90 days each year.
Speaking to FMT, Malaysia My Second Home Consultants Association (MM2HCA) president Anthony Liew called on the government to give existing pass holders a grace period to comply with the minimum stay rule, which was not a requirement previously.
“We don’t know whether this will be imposed immediately. We hope existing holders can be given time to comply with this new rule.
“The government should also clarify whether the dependents’ stay in the country can go towards accumulating these 90 days,” he said.
Liew noted that for some MM2H pass holders, the head of the family – who is the main applicant – is working overseas, with their spouse and children residing in Malaysia for studies or other purposes.
“Does their stay in the country contribute to the required 90 days?” he asked.
Successful applicants, who numbered nearly 39,000 as of last year, brought in RM40.6 billion throughout the 19 years of the programme, mostly from property purchases and compulsory fixed deposits (FDs) in local banks.
The programme’s participants spent an estimated RM4.9 billion in 2017 and RM4.4 billion in 2018 on property, rent, vehicles and immigration fees. They also contributed to the medical, education, travel, hospitality, retail, food and beverage, and entertainment sectors.
Johor’s Sultan Ibrahim Sultan Iskandar had been among those who had wanted a review of the new conditions imposed on MM2H participants, noting that it would dent the country’s revenue and frighten off investors.
The new conditions include higher compulsory FDs in local banks amounting to RM1 million (from between RM150,000 and RM300,000) and an offshore monthly income of RM40,000 (from RM10,000).
They also require applicants to have at least RM1.5 million in liquid assets, compared with between RM300,000 and RM500,000 previously.
Stating that Hamzah’s announcement was a “good step” for current MM2H pass holders, economist Carmelo Ferlito said it would send a strong signal to current holders, who would have invested heavily in the country.
Noting that sentiment among current holders was already low, Ferlito said more than 90% of the existing holders would not qualify for the programme under the new regulations.
“This is a good move to save the current holders,” the head of the Center for Market Education said.
“Change in policy should never be retroactive as it would create uncertainty in the law.
“The new criteria still apply for the new applicants. I believe that with the new criteria, the number of new applicants will be very close to zero.”