KUALA LUMPUR, June 30 — Kepong MP Lim Lip Eng today suggested a review of a 10-year holding criterion for property purchases to make Malaysia a more attractive retirement destination for foreigners in the “Malaysia My Second Home” (MM2H) residency visa scheme.
He claimed that many prospective applicants are feeling deterred by the latest guidelines, such as the criterion mandating property purchases that must be held for at least 10 years.
“This rigidity makes the scheme less appealing compared to more flexible options available in neighbouring countries like Thailand and Indonesia.
“Agencies processing MM2H applications report a dramatic decline in interest, with a 90 per cent drop in prospective applicants,” the DAP lawmaker said in a statement.
He noted that the revised MM2H scheme requires applicants to put in higher bank deposits ranging from US$150,000 to US$1 million, alongside property investments between RM600,000 and RM2 million.
He contrasted this new condition to the previous scheme of RM300,000 for those below 50 and RM150,000 for those above, without a mandatory property purchase.
“This approach attracted a diverse group of retirees and expatriates, contributing RM58 billion to the local economy over 17 years.
“Although the new scheme’s focus on high-net-worth individuals represents a policy shift, its stringent requirements have significantly narrowed the applicant pool,” Lim said.
He added that the compulsory property purchases are unlikely to boost Malaysia’s housing market as intended and could leave many units unsold or unrented.
He cited a news article published today in Singapore-based newspaper The Straits Times titled “Foreign retirees losing interest in Malaysia’s MM2H residency scheme after revamp of rules” to support his assertion.
Lim noted that economists quoted in the article argued that the new MM2H rules offer limited economic benefits due to their restrictive nature.
He said “the MM2H scheme needs to strike a balance between attracting high-net-worth individuals and providing flexibility to make Malaysia a desirable retirement destination”.
