They’re kicking us out: expats decry MM2H changes
Govt’s new conditions blasted as ‘bizarre’, may deteriorate Malaysia’s reputation
The Malaysia My Second Home programme has taken a beating since authorities shut national borders at the outbreak of Covid-19, with expatriates up in arms over updated stringent measures set for October. – Bernama pic, August 13, 2021
GEORGE TOWN – Many expatriates under the Malaysia My Second Home (MM2H) programme are convinced that the government is looking to remove them from the country in light of the new requirements and conditions announced on Wednesday.
The decision is expected to dramatically affect the economy as it encourages non-citizens to sell off their assets in Malaysia, remove their deposits and take off for greener pastures.
The most talked-about issue is the minimum monthly offshore income that has increased from RM10,000 to RM40,000 per month.
It is significant as most who decide to make Malaysia their home are retirees, and have hence experienced a major drop in income.
“I feel incredibly sad for those expats who own their own homes here and will be unable to meet the new limits,” said one MM2H holder.
“Also, expats who own investment properties here to supplement their incomes will not be able to count that as income to meet the new financial requirements as the RM40,000 per month must be earned offshore.
The policy is also likely to negatively impact real estate agents, vendors, tourism operators and many other sectors.
“Expats will talk amongst themselves and with friends and families, and the negativity that this will generate will have a trickle-down effect on Malaysia and how it is viewed,” they said.
An MM2H agent, Tan Hong Wang, told The Vibes that this new change is bizarre and many agents agree that it is ridiculous.
“Some of the requirements are also odd for the government to implement on current holders,” he said, stressing that changes or reviews done in previous years did not affect the old MM2H visa holders.
“If you are comparing other neighbouring countries that have this kind of programme, we are on the losing end in the aspect of competitiveness,” he told The Vibes.
“We are not talking about a 30% increase (now). This is more than three times the previous requirement.
“We need to really urge the government to amend it. They need to review and listen to the agents; we have first-hand information.
“There is also feedback from the expat group. There are so many social media groups that they can survey in,” he said.
Sleepless nights for many expats
An Australian living in Penang for nearly 5 years commented that previous updates to the programme only required those under MM2H to continue meeting the conditions stipulated in the original approval.
“I can see a lot of people deciding to leave the programme at renewal,” they said.
“My family's initial plan was to stay here indefinitely as we love Penang.
Under the new requirements we will not qualify and on the income levels stated we could live anywhere in the world.”
“Unless the government changes their decision we will be forced to relocate to another country. The RM40,000 per month income is more than double what we would need to return and live a comfortable life in Australia.”
Another expatriate posted their dissatisfaction on social media, stating that new requirements add considerable strength to the argument that many expatriates have expressed – that the current government simply does not want them here.
“A lot of expats have gone to bed... worrying about their future,” they said.
GEORGE TOWN – Many expatriates under the Malaysia My Second Home (MM2H) programme are convinced that the government is looking to remove them from the country in light of the new requirements and conditions announced on Wednesday.
The decision is expected to dramatically affect the economy as it encourages non-citizens to sell off their assets in Malaysia, remove their deposits and take off for greener pastures.
The most talked-about issue is the minimum monthly offshore income that has increased from RM10,000 to RM40,000 per month.
It is significant as most who decide to make Malaysia their home are retirees, and have hence experienced a major drop in income.
“I feel incredibly sad for those expats who own their own homes here and will be unable to meet the new limits,” said one MM2H holder.
“Also, expats who own investment properties here to supplement their incomes will not be able to count that as income to meet the new financial requirements as the RM40,000 per month must be earned offshore.
Realistically, if I had the financial means being newly sought here, I would consider a lot of other countries before Malaysia.”
The policy is also likely to negatively impact real estate agents, vendors, tourism operators and many other sectors.
“Expats will talk amongst themselves and with friends and families, and the negativity that this will generate will have a trickle-down effect on Malaysia and how it is viewed,” they said.
An MM2H agent, Tan Hong Wang, told The Vibes that this new change is bizarre and many agents agree that it is ridiculous.
“Some of the requirements are also odd for the government to implement on current holders,” he said, stressing that changes or reviews done in previous years did not affect the old MM2H visa holders.
“If you are comparing other neighbouring countries that have this kind of programme, we are on the losing end in the aspect of competitiveness,” he told The Vibes.
Thailand, one of our biggest competitors in this region, has also raised the minimum monthly offshore income but not as much.”
“We are not talking about a 30% increase (now). This is more than three times the previous requirement.
“We need to really urge the government to amend it. They need to review and listen to the agents; we have first-hand information.
“There is also feedback from the expat group. There are so many social media groups that they can survey in,” he said.
Sleepless nights for many expats
An Australian living in Penang for nearly 5 years commented that previous updates to the programme only required those under MM2H to continue meeting the conditions stipulated in the original approval.
“I can see a lot of people deciding to leave the programme at renewal,” they said.
“My family's initial plan was to stay here indefinitely as we love Penang.
Under the new requirements we will not qualify and on the income levels stated we could live anywhere in the world.”
“Unless the government changes their decision we will be forced to relocate to another country. The RM40,000 per month income is more than double what we would need to return and live a comfortable life in Australia.”
Another expatriate posted their dissatisfaction on social media, stating that new requirements add considerable strength to the argument that many expatriates have expressed – that the current government simply does not want them here.
“A lot of expats have gone to bed... worrying about their future,” they said.
New rules under the MM2H programme requires interested parties to have liquid assets of at least RM1.5 million, much higher than previously. – Twitter pic, August 13, 2021
“The release of the new MM2H requirements has sent a resounding ‘go f*** yourselves’ to those of us who will be unable to meet the stringent new rules.
“These people, including myself, are obviously not the ‘participants of real quality’ being sought by the government,” said the post.
Since the start of the pandemic, the MM2H programme has taken a real battering.
During the first few months of last year when Malaysia’s borders were closed, a majority of MM2H visa holders could not even enter the country.
It led to many holders giving up their visas or becoming very upset with the treatment they received.
Government now wants ‘high-income participants’
The announcement on the changes was made by Home Ministry Secretary-General Datuk Wan Ahmad Dahlan Abdul Aziz on Wednesday.
He said the new policies apply to all new applicants, as well as extensions by people whose MM2H passes have ended or will end soon.
They will need to have a fixed savings account of RM1 million, compared with the previous conditions of at least RM150,000 for applicants above 50 years old and RM300,000 for those 50 years old and below.
“The release of the new MM2H requirements has sent a resounding ‘go f*** yourselves’ to those of us who will be unable to meet the stringent new rules.
“These people, including myself, are obviously not the ‘participants of real quality’ being sought by the government,” said the post.
Since the start of the pandemic, the MM2H programme has taken a real battering.
During the first few months of last year when Malaysia’s borders were closed, a majority of MM2H visa holders could not even enter the country.
It led to many holders giving up their visas or becoming very upset with the treatment they received.
Government now wants ‘high-income participants’
The announcement on the changes was made by Home Ministry Secretary-General Datuk Wan Ahmad Dahlan Abdul Aziz on Wednesday.
He said the new policies apply to all new applicants, as well as extensions by people whose MM2H passes have ended or will end soon.
They will need to have a fixed savings account of RM1 million, compared with the previous conditions of at least RM150,000 for applicants above 50 years old and RM300,000 for those 50 years old and below.
Home Ministry Secretary-General Datuk Wan Ahmad Dahlan Abdul Aziz two days ago announced new financial conditions for those interested in the MM2H programme. – Bernama pic, August 13, 2021
Liquid assets need to be at least RM1.5 million, compared to RM350,000 and RM500,000 respectively in the past.
There will also be a ceiling for participant numbers, namely principals and dependants, at any one time, with not more than 1% of the Malaysian population.
The rate of the pass fee is also increased from RM90 to RM500 a year, with an additional RM5,000 processing fee for the principal and RM2,500 for each dependent.
Participants must also have an offshore income of at least RM40,000 a month, up from RM10,000 previously.
“The new income conditions are more relevant as the government is targeting high-income participants with adequate capabilities,” Wan Ahmad Dahlan said. “We also consider the expenses spent on children’s education at international schools, for instance, and a lifestyle matching their living standards.”
The MM2H programme was started in 2002 and promoted by the Malaysia Tourism Authority and the Immigration Department, primarily marketed as a retirement programme.
A survey by MM2H had found that those under the programme spend around RM10,000 a month.
Over half had purchased a property and a third reported that they acquired their home for under RM1 million and a quarter paid over RM2 million. – The Vibes, August 13, 2021
Liquid assets need to be at least RM1.5 million, compared to RM350,000 and RM500,000 respectively in the past.
There will also be a ceiling for participant numbers, namely principals and dependants, at any one time, with not more than 1% of the Malaysian population.
The rate of the pass fee is also increased from RM90 to RM500 a year, with an additional RM5,000 processing fee for the principal and RM2,500 for each dependent.
Participants must also have an offshore income of at least RM40,000 a month, up from RM10,000 previously.
“The new income conditions are more relevant as the government is targeting high-income participants with adequate capabilities,” Wan Ahmad Dahlan said. “We also consider the expenses spent on children’s education at international schools, for instance, and a lifestyle matching their living standards.”
The MM2H programme was started in 2002 and promoted by the Malaysia Tourism Authority and the Immigration Department, primarily marketed as a retirement programme.
A survey by MM2H had found that those under the programme spend around RM10,000 a month.
Over half had purchased a property and a third reported that they acquired their home for under RM1 million and a quarter paid over RM2 million. – The Vibes, August 13, 2021
It had always been a debate from the time of inception, whether MM2H should be targetted at the small number of Very High Nett Worth individuals or a wider market.
ReplyDeleteMalaysia has benefitted over the years from the decision to widen the appeal of MM2H. Penang, certainly.
Not sure why the PN Government chose to substantially toughen the conditions.
To be fair, if they want to change the rules, it ought to be for new applicants, and not change the terms for renewal of existing approved participants. It send a very bad message that the Malaysian Government has not respect for consistent rules.