New Reporter
18-03-24, 12:11
Standstill in approvals for Malaysia’s residency visa may dent foreigners’ interest
Mar 12, 2024
[KUALA LUMPUR] Malaysia continues to remain an attractive option for foreigners looking at a residency visa scheme, but the prolonged standstill in approvals for the Malaysia My Second Home (MM2H) programme is wearing their patience thin and could hurt interest.
Industry players told The Business Times that Malaysia’s recently refreshed criteria with more attractive conditions under the visa programme have yet to have an impact as all new applications are on hold, pending parliament’s green light.
MM2H Consultants Association president Anthony Liew said only applications to renew the existing MM2H visa are being processed for the time being, while the approval process for new applications are halted until further notice.
This follows last December’s announcement by Tourism, Arts and Culture Minister Tiong King Sing of a new set of relaxed conditions for the visa programme, aimed to attract foreigners, which includes a route to a permanent residency – a status that is difficult to secure in Malaysia.
When contacted by BT on the current progress of MM2H, the Tourism, Arts and Culture Ministry declined to comment further, but noted that the approvals for new applications will be processed after the parliament discussion. The ministry provided no timeline on this matter.
This would not be the first time the residency visa programme has been tweaked. MM2H, the Malaysian government’s visa programme to woo foreigners to reside and retire in the country, has been reviewed and tweaked several times since end-2019.
Introduced in 2002, MM2H has drawn strong interest. Popular spots among foreigners seeking a retirement home under the programme include Klang Valley and – for a more laid-back beach life – Penang. Johor is also a strong choice for MM2H visa holders, given the wide range of choices for education institutions and medical facilities.
Increasingly, Sabah and Sarawak in East Malaysia – known for their tropical forests and pristine beaches – have also been drawing foreigners’ interest, according to industry players.
Between 2002 and 2019, 48,471 foreigners were granted MM2H status, with the majority from China (nearly 33 per cent), Japan (10.6 per cent) and Bangladesh (nearly 9 per cent).
Under the previous MM2H programme, the approved applicants will be given a social visit pass and a renewable 10-year multiple-entry visa from the immigration department. It also allows the applicant to bring along their parents, spouses and dependants, including children below 21 years old.
A report by Penang Institute estimated that there are more than 50,000 foreigners residing in Malaysia under the MM2H programme, generating around RM11.8 billion (S$3.3 billion) for the country.
The first review of MM2H in September 2021 under the government led by then prime minister Ismail Sabri had tightened the criteria on applicants and included a RM1 million fixed deposit, minimum liquid assets worth RM1.5 million and a monthly income of at least RM40,000.
Those new rules, deemed harsh, had turned away many interested foreigners who sought other country options. During the period from November 2021 to 2023, the Malaysian government received 2,164 applications – below an average of 2,500 applications annually between 2002 and 2019.
In the middle of last year, there was another round of fresh tweaks in the visa programme, as Malaysia attempted to salvage the once-successful programme and introduced more realistic guidelines to include the average expat.
The relaxation of the MM2H requirements, however, sparked controversy after it drew criticism from the opposition political party in Malaysia that the more relaxed conditions under the review could lead to a “dumping of foreigners”.
The new MM2H programme introduces three categories – Platinum, Gold and Silver – to target different types of interested applicants based on their needs and financial conditions.
One of the significant changes under the new programme include lowering the financial threshold. For instance, the fixed deposit requirement has been lowered to RM500,000 for the Silver category, versus a relatively prohibitive RM1 million for all applicants previously.
The new programme is also open to applicants aged at least 30 years old, to encourage more young professionals and digital nomads to reside and invest in Malaysia. Previously, applicants had be at least 35 years old.
Ultra-rich individuals can opt for the Platinum category, which offers a permanent residency status for eligible applicants and also requires a higher fixed deposit requirement of RM5 million.
Liew said the latest MM2H criteria has widened participation, allowing for a diverse group of foreigners, including retirees and rich young professionals.
“Even existing MM2H visa holders are asking whether they could switch to the new programme,” he added.
Social media influencer and restaurateur Marcus Luo, a foreigner living in Malaysia, echoed this, adding that he has received at least 10 enquiries every day after he posted a video on the new criteria of MM2H.
Luo has lived in Malaysia for more than 15 years since he first arrived from China to further his studies in 2002. After graduation, Luo and his Malaysian wife returned to China and worked for a few years in Shenzhen. They eventually chose to return to Malaysia for “a more laid-back lifestyle” in 2015.
He runs his own mala hotpot restaurant business in Malaysia, and has his own YouTube channel on living in the country, which has garnered a strong following.
“My wife and I were working in the highly competitive technology industry in one of the most crowded cities in China. We felt tired after a few years and wanted to start afresh... in a new environment that is less stressful, with better living quality,” he told BT.
Bangkok, Singapore and Kuala Lumpur were on their list of country options during that time, but they chose Kuala Lumpur for a few reasons – ease of communication, good amenities and lower cost of living.
“We like the cultural diversity in Malaysia. In fact, I feel more like a Chinese in Malaysia than in China. It surprised me that the Chinese community here still celebrates and preserves the traditional culture such as Bai Tian Gong (praying to the Heaven God),” added Luo.
Despite the prolonged pause, Liew said agents and consultants are upbeat that the reviewed MM2H programme will attract thousands of foreigners, as some of them already have more than 100 clients waiting to submit their applications.
He expects the number of applications to reach at least 60 per cent of what the country received in 2018, after the government resumed the approval process for new applications.
At its peak in 2018, Malaysia received more than 6,000 applications, of which 5,610 were approved.
Kurt Tan, division director of MM2H consultancy company YMG, hopes the approval process will resume as soon as possible, as he already has a long wait list of eager clients.
“No language barrier, as well as reasonable cost of living and property prices are the reasons that make Malaysia the preferred destination for foreigners looking for a second home, especially those from China,” said Tan.
But competition is heating up in the region as countries step up efforts to woo foreigners, particularly the wealthy, to set up second homes in their land to galvanise consumption and activity. Against such a backdrop, MM2H agent William Teng worries that the pause in Malaysia’s approval of new residency visas could cause it to lose out.
Thailand, for one, is offering a range of programmes from long-term visas, golden visas to privilege visas, and elite visas for foreigners who are looking to invest or retire there.
Indonesia also introduced a Second Home Visa programme, similar to MM2H, to attract foreign investors, professionals and retirees.
https://www.businesstimes.com.sg/international/asean/standstill-approvals-malaysia-s-residency-visa-may-dent-foreigners-interest
Mar 12, 2024
[KUALA LUMPUR] Malaysia continues to remain an attractive option for foreigners looking at a residency visa scheme, but the prolonged standstill in approvals for the Malaysia My Second Home (MM2H) programme is wearing their patience thin and could hurt interest.
Industry players told The Business Times that Malaysia’s recently refreshed criteria with more attractive conditions under the visa programme have yet to have an impact as all new applications are on hold, pending parliament’s green light.
MM2H Consultants Association president Anthony Liew said only applications to renew the existing MM2H visa are being processed for the time being, while the approval process for new applications are halted until further notice.
This follows last December’s announcement by Tourism, Arts and Culture Minister Tiong King Sing of a new set of relaxed conditions for the visa programme, aimed to attract foreigners, which includes a route to a permanent residency – a status that is difficult to secure in Malaysia.
When contacted by BT on the current progress of MM2H, the Tourism, Arts and Culture Ministry declined to comment further, but noted that the approvals for new applications will be processed after the parliament discussion. The ministry provided no timeline on this matter.
This would not be the first time the residency visa programme has been tweaked. MM2H, the Malaysian government’s visa programme to woo foreigners to reside and retire in the country, has been reviewed and tweaked several times since end-2019.
Introduced in 2002, MM2H has drawn strong interest. Popular spots among foreigners seeking a retirement home under the programme include Klang Valley and – for a more laid-back beach life – Penang. Johor is also a strong choice for MM2H visa holders, given the wide range of choices for education institutions and medical facilities.
Increasingly, Sabah and Sarawak in East Malaysia – known for their tropical forests and pristine beaches – have also been drawing foreigners’ interest, according to industry players.
Between 2002 and 2019, 48,471 foreigners were granted MM2H status, with the majority from China (nearly 33 per cent), Japan (10.6 per cent) and Bangladesh (nearly 9 per cent).
Under the previous MM2H programme, the approved applicants will be given a social visit pass and a renewable 10-year multiple-entry visa from the immigration department. It also allows the applicant to bring along their parents, spouses and dependants, including children below 21 years old.
A report by Penang Institute estimated that there are more than 50,000 foreigners residing in Malaysia under the MM2H programme, generating around RM11.8 billion (S$3.3 billion) for the country.
The first review of MM2H in September 2021 under the government led by then prime minister Ismail Sabri had tightened the criteria on applicants and included a RM1 million fixed deposit, minimum liquid assets worth RM1.5 million and a monthly income of at least RM40,000.
Those new rules, deemed harsh, had turned away many interested foreigners who sought other country options. During the period from November 2021 to 2023, the Malaysian government received 2,164 applications – below an average of 2,500 applications annually between 2002 and 2019.
In the middle of last year, there was another round of fresh tweaks in the visa programme, as Malaysia attempted to salvage the once-successful programme and introduced more realistic guidelines to include the average expat.
The relaxation of the MM2H requirements, however, sparked controversy after it drew criticism from the opposition political party in Malaysia that the more relaxed conditions under the review could lead to a “dumping of foreigners”.
The new MM2H programme introduces three categories – Platinum, Gold and Silver – to target different types of interested applicants based on their needs and financial conditions.
One of the significant changes under the new programme include lowering the financial threshold. For instance, the fixed deposit requirement has been lowered to RM500,000 for the Silver category, versus a relatively prohibitive RM1 million for all applicants previously.
The new programme is also open to applicants aged at least 30 years old, to encourage more young professionals and digital nomads to reside and invest in Malaysia. Previously, applicants had be at least 35 years old.
Ultra-rich individuals can opt for the Platinum category, which offers a permanent residency status for eligible applicants and also requires a higher fixed deposit requirement of RM5 million.
Liew said the latest MM2H criteria has widened participation, allowing for a diverse group of foreigners, including retirees and rich young professionals.
“Even existing MM2H visa holders are asking whether they could switch to the new programme,” he added.
Social media influencer and restaurateur Marcus Luo, a foreigner living in Malaysia, echoed this, adding that he has received at least 10 enquiries every day after he posted a video on the new criteria of MM2H.
Luo has lived in Malaysia for more than 15 years since he first arrived from China to further his studies in 2002. After graduation, Luo and his Malaysian wife returned to China and worked for a few years in Shenzhen. They eventually chose to return to Malaysia for “a more laid-back lifestyle” in 2015.
He runs his own mala hotpot restaurant business in Malaysia, and has his own YouTube channel on living in the country, which has garnered a strong following.
“My wife and I were working in the highly competitive technology industry in one of the most crowded cities in China. We felt tired after a few years and wanted to start afresh... in a new environment that is less stressful, with better living quality,” he told BT.
Bangkok, Singapore and Kuala Lumpur were on their list of country options during that time, but they chose Kuala Lumpur for a few reasons – ease of communication, good amenities and lower cost of living.
“We like the cultural diversity in Malaysia. In fact, I feel more like a Chinese in Malaysia than in China. It surprised me that the Chinese community here still celebrates and preserves the traditional culture such as Bai Tian Gong (praying to the Heaven God),” added Luo.
Despite the prolonged pause, Liew said agents and consultants are upbeat that the reviewed MM2H programme will attract thousands of foreigners, as some of them already have more than 100 clients waiting to submit their applications.
He expects the number of applications to reach at least 60 per cent of what the country received in 2018, after the government resumed the approval process for new applications.
At its peak in 2018, Malaysia received more than 6,000 applications, of which 5,610 were approved.
Kurt Tan, division director of MM2H consultancy company YMG, hopes the approval process will resume as soon as possible, as he already has a long wait list of eager clients.
“No language barrier, as well as reasonable cost of living and property prices are the reasons that make Malaysia the preferred destination for foreigners looking for a second home, especially those from China,” said Tan.
But competition is heating up in the region as countries step up efforts to woo foreigners, particularly the wealthy, to set up second homes in their land to galvanise consumption and activity. Against such a backdrop, MM2H agent William Teng worries that the pause in Malaysia’s approval of new residency visas could cause it to lose out.
Thailand, for one, is offering a range of programmes from long-term visas, golden visas to privilege visas, and elite visas for foreigners who are looking to invest or retire there.
Indonesia also introduced a Second Home Visa programme, similar to MM2H, to attract foreign investors, professionals and retirees.
https://www.businesstimes.com.sg/international/asean/standstill-approvals-malaysia-s-residency-visa-may-dent-foreigners-interest