Penang tourism and creative economy committee chairman Yeoh Soon Hin said the home ministry must review and revise the new MM2H conditions urgently.

This was necessary to keep pace with the changing needs of the economy and make a meaningful contribution to the revival of the country’s economy after the pandemic.

“The expatriates play a vital role and they have a multiplier effect on the economic development of Penang and Malaysia as a whole.

“Thus, it will be beneficial for the country if conditions for new applicants of MM2H are fair, reasonable and effective.

“This will encourage potential residents or investors from abroad to stay with us,” he said in a statement here today.

Yeoh said as one of the top tourist destinations in Southeast Asia, Penang is known for its vibrant multicultural scene, savoury street food and strategic geographical location.

All these had captivated many expatriates, he added.

However, he said the MM2H Consultant Association found that the stricter conditions had caused a 90% drop in the number of MM2H applicants after the new rules were introduced in 2021.

“These unnecessary barriers have hindered attracting long-term foreign residents ever since.

“If such conditions persist, I believe many expatriates will no longer choose Malaysia and will seek out neighbouring countries.

“It will be much easier for them to meet the eligibility requirements to settle there,” he added.