The programme is currently under the home ministry.

International Real Estate Federation (Fiabci) Malaysia president Firdaus Musa claimed that more than 90% of high-net-worth individuals have shunned Malaysia as their second home option because of the revised conditions and changes in MM2H’s rules.

“Malaysia is a beautiful country, and Penang, Johor and Kuala Lumpur have been strong attractions for foreigners to live and spend their money here, spurring the local economy,” he told Bernama.

Firdaus said returning the programme to the tourism ministry did not mean the country’s security will be compromised.

Instead, he said, a lot of issues can be settled.

“In the long run, the influx of high-net-worth individuals into Malaysia will help raise government revenue, especially in terms of tax collection.

“We will continue to work closely with the tourism as well as the home ministry to ensure that MM2H participants follow the rules set by the government,” he said.

Firdaus also said neighbouring countries such as Thailand, Vietnam and Indonesia were aggressively promoting multiple-entry visas and long stays, which prove that such programmes bring economic benefits to their economies.

Penang executive councillor for tourism and creative economy Yeoh Soon Hin had previously called on the home ministry to urgently review and revise the new MM2H conditions to keep pace with the changing needs of the economy.

He said the MM2H Consultants Association found a 90% drop in the number of applicants since the stricter conditions were introduced in 2021.

Some of the revised conditions require applicants to have a fixed deposit account of at least RM1 million (previously RM300,000), liquid assets of at least RM1.5 million (previously RM500,000) and a monthly offshore income of at least RM40,000 a month, up from RM10,000.