KUALA LUMPUR,; Tan Sri T.C Goh, President of the Federation of Chinese Associations Malaysia (Huazong) has urged the government to immediately review the new conditions for the Malaysia My Second Home (MM2H) programme, describing they are too restrictive and will drive potential applicants away.
He said, although currently there are more than 50,000 participants in the MM2H programme, it is nonetheless still quite far away from one of its conditions that “the number of its participants must not exceed 1% of Malaysia’s total population”. Hence, there’s no justification for the authority concerned to further tighten its conditions.
“Currently, the participants and applicants of the MM2H programme are mostly the ‘cream of the crop’ from overseas, and among them are retired professionals or working expatriates. By right, the government should introduce policies which are more attractive, or even provide incentives, to attract more professionals and investors to come and live in Malaysia. This would certainly facilitate a speedy recovery of our economy post Covid-19 pandemic,” he said.
He contended that, as compared to the conditions set for the millions of foreign labors, not to mention the presence of huge number of illegal immigrants, whose combined numbers have been described as the ‘third largest population’ in the country, the government should set conditions which are more attractive and encouraging for participants of the MM2H programme.
Goh who is also President of the Federation of Chinese Associations Sabah (FCAS) expressed this while commenting on the recent announcement by Home Ministry secretary-general Datuk Wan Ahmad Dahlan Abdul Aziz, that the MM2H programme will be reactivated in October, with improvements to policies and application conditions to balance the security and economic aspects.
Goh said, while the government’s decision to reactivate the programme is welcomed, its new conditions are nonetheless not something expected by the industry players and the applicants.
On Ahmad Dahlan’s statement that the government has decided to restrict the number of its participants to not more than 1% of the total Malaysian population, as it understands Malaysians’ concerns about the entry of foreigners through the MM2H programme, Goh quipped that the government should be more concerned with the pressing issue of the presence of huge number of illegal immigrants and foreign workers in the country. Furthermore, currently, there are only more than 50,000 participants under the said programme, which is clearly still far away from the 1% ceiling set by the government.
He claimed that, since the announcement of reactivation of the MM2H programme and its new conditions, Huazong has been receiving feedback and complaints from consultants and agencies dealing with the programme over the new conditions, which they described as being too restrictive, and they hoped that the government could quickly review and rectify it.
Goh who is also a board director of Malaysia-China Business Council (MCBC) cum chairman of Malaysia-China Bilateral Policies noted that, since its inception in 2002 until its suspension in 2019, the MM2H programme has attracted 57,478 participants, and raked in a total revenue of RM 11.8 billion. Among the participants include those from China, Japan, England, Bangladesh, Korea, Singapore, USA, Australia, Taiwan and Indonesia, with a majority of them from China. Currently, the government has received another 1,000 new applications from China and 200 applications from Japan.
Meanwhile, Huazong has come out with the following 10-point proposal for the government’s consideration:
1. Urging the new Cabinet to immediately review the new conditions for the MM2H programme, especially through discussion with the Ministry of Tourism, Arts and Culture, the Home Ministry, and relevant industry players, to achieve a ‘win-win’ solution.
2. To be more flexible with the requirement for the applicants’ compulsory fixed deposits (FD) in local banks and their liquid assets, especially for those aged between 35 and 49, by taking into consideration their financial burden for their children’s education, etc.
3. Similarly, there should also be consideration and flexibility in regards to the applicants’ offshore monthly income and liquid assets, based on their occupation, and whether they are fully retired or still working.
4. Special considerations should also be given to the applicants, whether they are currently seeking for employment, or their income has decreased due to the Covid-19 pandemic.
5. Under the revised conditions, the applicants’ offshore monthly income is increased from RM10,000 to RM40,000; compulsory fixed deposits (FD) in local banks increased from between RM150,000 and RM300,000 to RM1 million (applicants are allowed to withdraw a maximum 50% of the said deposit for the purposes of property purchase, children’s education and healthcare); applicants must have at least RM1.5 million in liquid assets, compared with between RM300,000 and RM500,000 previously; the fee for a MM2H Pass will be increased from RM90 to RM500 for each year of the duration of the pass, and a processing fee of RM5,000 will be imposed on the principal applicant and RM2,500 for each dependant – conditions which stakeholders agree would deter potential applicants and should be promptly reviewed and adjusted by the government.
6. To review the condition of requiring the principal applicant to stay a minimum of 90 days in the country per year as such a requirement is deemed too rigid for those who are involved in international business and need to travel frequently. The said duration should be cut short, or be taken into account with the family members’ duration of stay in Malaysia.
7. To waive the requirement for ‘offshore income’ or ‘monthly income’ for participants who have lived in Malaysia for more than 10 years, as Malaysia has essentially become their “retirement home”.
8. Prior to setting the conditions, the government should first compare them with those set by the other ASEAN countries, the neighbouring countries especially, so as not to drive away potential applicants and inevitably cause Malaysia to lose its competitive edge.
9. Government should take serious note of the feedback given by the existing MM2H participants, especially on their intention to pull out from Malaysia and to move to other countries which provide better and more attractive conditions.
10. Government must realise the significance of the MM2H programme to the national economy, the property market especially, and its serious ramifications, if the existing participants were to exit Malaysia and dispose of their properties. Likewise, it the new conditions are unattractive, it would also deal a serious blow to the already struggling domestic housing and property market and a host of other related sectors, such as automobile, healthcare, education and many other consumer markets, which would ultimately have a far-reaching adverse impact on our gross domestic product (GDP).-pr)BNN
