New MM2H rules will cause RM3.7bil loss, says association
The association of real estate professionals has called for discussions with stakeholders to draw up revised MM2H policies.
PETALING JAYA: The new stricter policies for the Malaysia My Second Home (MM2H) programme will result in at least a RM3.7 billion loss to the country, says an association.
The Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector Malaysia (PEPS) said this only included fixed deposits, visa fees, hotel accommodation, medical insurance and checkups, and not the purchase of property, cars, children’s education, food and beverages, retail purchases and consumer spending.
It said the proposed new policies appeared to only discourage the programme’s participants rather than provide added incentives.
“It can be seen that the main focus of the policies is more towards security concerns or on the spike in the number of participants from a particular country rather than the economic potentialities,” it said in a statement today.
“Policies that involve foreign investment must not be quickly reversed as they send negative signals to the existing and potential applicants.”
PEPS said security concerns or the spike in participants from a particular country could be managed by having separate policies and processes to avoid misuse of MM2H visas.
More engagement with stakeholders, non-governmental organisations and expatriates should be carried out before drawing up policies because MM2H played a vital role not only in economic contributions but as an international advertisement as to what the country could offer, it said.
The association called for implementation of the new policies to be deferred until a solid inclusive approach was formulated.
“There should be more progressive policies to further increase the number of participants as they are contributing to the economy as compared to foreign workers who generate foreign outflows by repatriating money to their home countries,” it said.
It said that unlike the foreign workforce, MM2H participants were net importers of foreign currency and added to the economy by way of multiplier spending.
“They are also socially less problematic as the government does not have to provide medical and social services because all these are paid for and borne by the participants. They do not cause any burden to Malaysian employers,” it said.
PEPS also said the new policies should be geared towards attracting genuine and good quality foreigners, not necessarily upper high-end income earners.
Recently, home ministry secretary-general Wan Ahmad Dahlan Abdul Aziz unveiled 10 stricter criteria which MM2H applicants would need to fulfill.
Key among them is an increase in their compulsory fixed deposits in local banks from between RM150,000 and RM300,000 to RM1 million, and offshore monthly income from RM10,000 to RM40,000.
Applicants would also need to have at least RM1.5 million in liquid assets, compared to between RM300,000 and RM500,000 previously.
PETALING JAYA: The new stricter policies for the Malaysia My Second Home (MM2H) programme will result in at least a RM3.7 billion loss to the country, says an association.
The Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector Malaysia (PEPS) said this only included fixed deposits, visa fees, hotel accommodation, medical insurance and checkups, and not the purchase of property, cars, children’s education, food and beverages, retail purchases and consumer spending.
It said the proposed new policies appeared to only discourage the programme’s participants rather than provide added incentives.
“It can be seen that the main focus of the policies is more towards security concerns or on the spike in the number of participants from a particular country rather than the economic potentialities,” it said in a statement today.
“Policies that involve foreign investment must not be quickly reversed as they send negative signals to the existing and potential applicants.”
PEPS said security concerns or the spike in participants from a particular country could be managed by having separate policies and processes to avoid misuse of MM2H visas.
More engagement with stakeholders, non-governmental organisations and expatriates should be carried out before drawing up policies because MM2H played a vital role not only in economic contributions but as an international advertisement as to what the country could offer, it said.
The association called for implementation of the new policies to be deferred until a solid inclusive approach was formulated.
“There should be more progressive policies to further increase the number of participants as they are contributing to the economy as compared to foreign workers who generate foreign outflows by repatriating money to their home countries,” it said.
It said that unlike the foreign workforce, MM2H participants were net importers of foreign currency and added to the economy by way of multiplier spending.
“They are also socially less problematic as the government does not have to provide medical and social services because all these are paid for and borne by the participants. They do not cause any burden to Malaysian employers,” it said.
PEPS also said the new policies should be geared towards attracting genuine and good quality foreigners, not necessarily upper high-end income earners.
Recently, home ministry secretary-general Wan Ahmad Dahlan Abdul Aziz unveiled 10 stricter criteria which MM2H applicants would need to fulfill.
Key among them is an increase in their compulsory fixed deposits in local banks from between RM150,000 and RM300,000 to RM1 million, and offshore monthly income from RM10,000 to RM40,000.
Applicants would also need to have at least RM1.5 million in liquid assets, compared to between RM300,000 and RM500,000 previously.
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