KUALA LUMPUR, Aug 2 — The number of Malaysia My Second Home (MM2H) applicants may drop this year after the government made property purchase a new requirement.
MM2H Consultants Association president Anthony Liew said those who chose to apply for the long-stay scheme are mostly retirees who may not want to buy properties in Malaysia.
“So far, based on reactions from our members, the number of applicants will decrease due to this new requirement,” he told Malay Mail when contacted.
Liew said it is not because the applicants cannot afford to buy properties in Malaysia but there were other factors to consider.
“Some may want to live here for a couple years first to see if this country suits their needs before deciding to stay for a longer term so they will not want to buy properties here as this could tie them down here for a longer period,” he said.
He said there is also the ambiguity of the new requirements in terms of the property purchase and whether the applicants, especially under the gold and silver tiers, are allowed to rent out those properties.
“Some may not be able to buy properties where they want to live so they buy elsewhere and rent a place where they want to live but will they be allowed to rent out the properties they bought?” he asked.
Liew said the top five MM2H applicants are from China, followed by Taiwan, Hong Kong, Korea and Singapore.
“The China applicants are more than capable of buying properties but many of them do not want to make such a commitment before living here to see if it suits their lifestyles,” he said.
He said Malaysia used to attract applicants from western countries, especially from the United Kingdom, before the pandemic in 2020, but the number has since dropped and with the property purchase requirement now, “those who are interested may be discouraged”.
He said this is because many of these westerners do not buy properties in their own home countries so they would not want to buy properties in a country they plan to retire for a few years.
He said some of those who terminated their MM2H are those who were here for their children to study in Malaysia and once their children have completed their studies, they will leave.
He claimed a small number had moved to Thailand.
In recent times, Liew said some MM2H consultants have been receiving MM2H terminations.
“Even for myself, I receive terminations every week,” he said.
Other than the new MM2H requirements, there was also a new licensing requirement for MM2H agents or consultants.
Liew said the new licensing requirement was for the MM2H consultant firm to have a bank guarantee of RM200,000.
“We currently have over 200 members but with this new licensing requirement, the smaller firms may not apply for the new licence as they are unable to accumulate sufficient funds especially after being hit by the pandemic,” he said.
He said the smaller firms may feel that it is not worth putting up RM200,000 in bank guarantee especially with fewer applicants and the MM2H programme is now less attractive.
But there is hope that the new MM2H scheme can succeed.
Liew said the lower age requirements meant that younger MM2H applicants may want to come to Malaysia with their families, which could boost certain economic sectors in the country.
“They may apply to come here for their children to study here and it is good that they have removed the offshore income requirement too,” he said.
