KUALA LUMPUR: The revamped rules of the Malaysia My Second Home (MM2H) residency visa scheme has increased the interest of foreigners in owning properties in Malaysia, says Datuk Seri Tiong King Sing.

“We have received reports that developers are getting enquiries from abroad about how to purchase houses that align with the prices we have set under the programme,” said the Tourism, Arts and Culture Minister in a special interview.

In June, the Tourism, Arts and Culture Ministry (Motac) announced the revamped MM2H, which introduced the Platinum, Gold and Silver categories, to boost the high-end segment of the local property market.

It had relaxed some provisions compared with the 2021 version with reduced requirements for fixed deposits, offshore income and liquid assets.

However, it has drawn some criticism that the programme may not be attractive compared with similar programmes offered by neighbouring countries.

Tiong said these were just some points of views but contrasting research indicated there was still a strong desire to buy property in Malaysia.

“The Platinum category requires a fixed deposit of US$1mil; the Gold category requires US$500,000; and the Silver category requires US$150,000.

“Visa holders are allowed to withdraw 50% for property, medical, education or tourism expenses in Malaysia after one year.

“Other countries’ versions are different from ours. If MM2H is an unpopular policy, why are neighbouring countries introducing similar policies to attract foreigners to invest and live there?” he asked.

Tiong said that although applicants were generally required to hold property for at least 10 years, it was not an absolute restriction.

“For instance, if I buy a property for RM500,000 today and later find a better location and a more comfortable house, I can sell my current property and buy another one, provided I submit the required documentation.

“We shouldn’t be too worried about people who come to stay in Malaysia. As long as they are disciplined, do not jeopardise security and spend money, we welcome them to help our economy grow.”

Under the Platinum category, an applicant has to pay a one-off RM200,000 fee, which allows them to work and invest in Malaysia, while the Gold and Silver categories have fees of RM3,000 and RM1,000, respectively.

However, Gold and Silver MM2H visa holders are not allowed to work.

The MM2H visa is valid for 20 years for Platinum, 15 years for Gold, and five years for Silver.

Aside from the Federal Government’s MM2H version, Sabah and Sarawak have their own MM2H policies.

Sabah requires applicants to buy high-rise property priced at least RM600,000.

Sarawak’s MM2H allows participants to purchase residential properties at prices not less than RM600,000 (in the Kuching area) or RM500,000 (in other districts).

Despite claims that foreigners were more interested in Sarawak’s MM2H due to its less stringent conditions, which some perceived as a “loophole”, Tiong said applicants who get approval for the Sarawak MM2H were allowed to stay and travel in Peninsular Malaysia.

“Motac does not consider this a loophole but rather an opportunity for the Federal Government to further promote the advantages of the federal version of MM2H to them,” he added.

Additionally, Tiong suggested that Sabah and Sarawak’s MM2H policies should complement the Federal Government guidelines.

“Sarawak and Sabah are free to decide which features or terms of the federal MM2H programme are suitable for them, albeit within the confines of the Federal Constitution. The engagement with Sabah and Sarawak has been very positive,” he said.

He said that he would suggest to the Sarawak government that they could require applicants to purchase property or even adopt one of the categories introduced by the Federal Government, such as the Silver category.

https://www.thestar.com.my/news/nation/2024/08/17/relaxed-mm2h-rules-a-huge-draw