BEST FBKL: KDN Please listen to the
stakeholders and Ensure New MM2H Rules Make Common Sense - new rules should not be apply to existing pass holders, it should be applied only for new applications!
Let us not reinvent the wheel, lets take the best practices of successful countries.
MIEA: Defer new MM2H criteria to Dec 2022
New Straits Times
13/8/2021
KUALA LUMPUR: The Malaysian Institute of Estate Agents (MIEA) has proposed that the government defer the new criteria for the Malaysia My Second Home (MM2H) programme to December 2022.
MIEA said this is considering the pandemic and to allow sufficient time for preparation.
"First, we applaud the Home Ministry for having reactivated the MM2H programme, which indirectly will help our nation in the economic recovery.
"While the move to reactivate the MM2H is a good move, we are of the opinion that certain new requirements need to be revisited in order to stay on course of the purpose it was intended for."
Yesterday, Home Ministry secretary-general Datuk Wan Ahmad Dahlan Abdul Aziz announced MM2H will be reactivated with improvements to policies and application conditions to balance the security and economic aspects.
He said new applications for the programme would be processed and managed by the Immigration Department beginning October after all legal processes are completed.
The national body representing real estate practitioners also said all existing MM2H pass holders should not be affected by this new ruling.
"Applying this new rule to existing MM2H recipients will dampen and not practical. Policies needs to be consistent in order to promote confidence."
While agreeing with some improvements announced, such as to cap quota of not over one per cent of the Malaysian population to keep control of the limit of MM2H recipients and imposing an increased processing fee and the levy is acceptable to gain greater revenue for the country, MIEA said some changes were too drastic.
"Increase in the minimum income of RM40,000 per month from current RM10,000 per month is too drastic, perhaps different classes of applications can be tailored to cater to the various foreign applicants.
"Having liquid assets of RM1.5 million from current RM350,000 (over 50-year-old) and RM500,000 (under 50-year-old) is a dramatic change.
"Placing fixed deposits of RM1 million in a Malaysian bank from current RM150,000 (over 50-year-old) and RM300,000 (under 50-year-old) is a six-fold and three-fold increase, which is a dramatic rise.
"All these changes should be based on the different class of application."
MIEA said this sudden move would discourage foreigners to take part in the programme and it would not be a stimulus for the agents to secure them.
"Malaysia is not the only country which has similar programmes, making it harder and will drive the new applicants away. Secondly, to retrospectively apply these rules to existing pass holders will give a negative impact on our MM2H programme."
MIEA said Home Ministry should also look into different classes of applicants to cater to the various types of foreign investors to attract the right groups of people who can add value to Malaysia.
"Secondly, a review should be done in the applying of the new rules to existing pass holders to ensure, there is no disorder in the lives of the 57,000 pass holders.
"This will boost the confidence of foreign investors both in our nation and its policies."
FOR MORE NEWS GO TO:
https://www.nst.com.my/news/nation/2021/08/717715/miea-defer-new-mm2h-criteria-dec-2022
https://www.nst.com.my/news/nation/2021/08/717715/miea-defer-new-mm2h-criteria-dec-2022
BERNAMA
13/8/2021
PUTRAJAYA (Aug 11): The Malaysia My Second Home (MM2H) programme will be reactivated with improvements to policies and application conditions to balance the security and economic aspects.
Home Ministry secretary-general Datuk Wan Ahmad Dahlan Abdul Aziz said new applications for the programme will be processed and managed by the Immigration Department beginning October after all legal processes are completed.
According to him, the Cabinet agreed on July 14 and 30 to the suggested improvements to new MM2H policies as a strategy to assist in the implementation of the National Recovery Plan to regenerate the country's economy.
"The MM2H application procedures will also be improved by creating an online system for the application, processing and maintaining the profile database of MM2H participants," he said in a media conference here today. Also present was Immigration director-general Datuk Khairul Dzaimee Daud.
Wan Ahmad Dahlan said among the improvements to the MM2H programme is the setting of a ceiling on the number of participants, namely the principals and dependants, at any one time, with not more than 1% of the total Malaysian population.
"Only qualified applicants with no criminal records will be allowed to be part of the programme," he said, adding that the government understands Malaysians' concerns about the entry of foreigners through the MM2H programme.
He said applicants must reside in Malaysia for a cumulative of at least 90 days in a year to ensure they really spend and contribute to the country's economy, in the form of property rentals or purchases, healthcare services, insurance, education, food and drinks as well as domestic tourism.
Wan Ahmad Dahlan said participants must have an offshore income of at least RM40,000 a month compared with RM10,000 previously.
"The new income conditions are more relevant as the government is targeting high-income participants with adequate capabilities. We also consider the expenses spent on children's education in international schools for instance, and a suitable lifestyle matching their living standards," he said.
He said applicants need to have a fixed savings account of RM1 million, compared with previous conditions of at least RM150,000 for applicants above 50 years old and RM300,000 for those 50 years old and below.
Participants also need to make an asset declaration and prove that they own liquid assets of at least RM1.5 million compared with previous conditions that set the value of liquid assets at RM350,000 and RM500,000 according to respective categories, he added.
He said the MM2H programme is now divided into two categories — those between 35 and 49 years old and those who are 50 years old and above.
"The 35- to 49-year-old category was introduced to select participants of real quality who are more stable income-wise and have careers," he said, adding that it is due to changing trends and the spillover effects of programmes similar to MM2H in neighbouring countries, such as Thailand and the Philippines.
Wan Ahmad Dahlan said the duration of the MM2H programme long-term social visit pass is now set to five years and can be extended for another five and so on as long as participants are subject to the compliance of the application conditions, compared with 10 years previously.
He said the rate of the pass fee is increased to RM500 a year from RM90 previously, while a RM5,000 processing fee will be charged for the principal and RM2,500 for each dependant.
"Previously, no processing fee was charged. The processing fee is aimed at increasing the quality of service offered to MM2H participants," he said.
For renewal of passes, change of principals, change in nationality, participants, and dependants must undergo and pass security vetting, and submit a Letter of Good Conduct for participants and dependants, he added.
Wan Ahmad Dahlan said the implementation of new MM2H policies applies to all new applications and applications of extension for existing participants whose MM2H passes have ended or will end.
"This means existing participants, if they are still keen on joining the programme, can seek extensions subject to the new conditions.
"A grace period of a year will be given so that participants can fulfil the new requirements," he said.
The MM2H programme, introduced in 2002, allows foreigners to purchase property and reside in Malaysia on a long-term basis. It was temporarily frozen in August 2020 to enable the Home Ministry and the Ministry of Tourism, Arts and Culture to study and review the programme comprehensively.
According to him, the MM2H programme managed to stimulate the country's economy with a cumulative gross value added income of RM11.89 billion from 2002 to 2019 through visa fees, property purchases, personal vehicle purchases, fixed deposits, and monthly household expenditure.
Wan Ahmad Dahlan said the current total of MM2H participants who have been approved is 57,478 people, including dependants of MM2H pass holders.
He stressed that the MM2H programme and entry of participants in Malaysia are still subject to the health policies and standard operating procedures set by the National Security Council and risk assessments by the Health Ministry.
When asked if applicants from countries currently banned from entering Malaysia due to high Covid-19 positive cases will be approved, Wan Ahmad Dahlan said the ban is still in effect.
On Sept 7, Malaysia banned entry from 23 countries for having more than 150,000 Covid-19 positive cases.
The countries are the United States, Brazil, India, Russia, Peru, Colombia, South Africa, Mexico, Spain, Argentina, Chile, Iran, the United Kingdom, Bangladesh, Saudi Arabia, Pakistan, France, Turkey, Italy, Germany, Iraq, the Philippines, and Indonesia.
