Malaysia My Second Home (MM2H) Scheme: Stricter Guidelines Impact Popularity
The Malaysia My Second Home (MM2H) scheme, once a highly sought-after program for foreigners seeking long-term residency in Malaysia, has seen a significant decline in popularity over recent years. This downturn can be attributed to several revisions and stricter guidelines introduced under the revamped version of the program, known as eMM2H, launched in August 2021.
The Initial Revamp: eMM2H
The eMM2H program, introduced by then home minister Datuk Seri Hamzah Zainudin, aimed to attract “higher quality” participants while mitigating the risk of exploitation. However, the stringent new terms set for the eMM2H quickly drew criticism from industry players.
Key changes included:
- Fixed Deposit Requirement: Applicants now needed a minimum of RM1 million in a Malaysian fixed deposit (FD) account, a substantial increase from the previous RM150,000 for those above 50 years old and RM300,000 for those below 50.
- Offshore Income Requirement: The required offshore income was raised to at least RM40,000 per month, compared to the previous RM10,000.
- Liquid Assets Requirement: Proof of additional liquid assets of RM1.5 million was necessary, up from RM350,000 for applicants above 50 years old and RM500,000 for those below 50.
These elevated financial thresholds made the program less accessible to many potential participants, leading to a marked decrease in applications.
Attempts to Revitalize: December 2022 Proposals
Recognizing the decline in interest, Tourism, Arts and Culture Minister Datuk Seri Tiong King Sing proposed adjustments to the eMM2H program in December 2022. These included:
- Reduced Fixed Deposit Requirement: Halving the minimum FD sum to RM500,000.
- Permanent Residency Option: Allowing applicants willing to deposit RM5 million to convert their visa into permanent residency status.
These proposals were intended to make the program more appealing to well-to-do foreigners, yet the changes were short-lived.
New Guidelines in June 2023: MM2H 2024
Six months later, new guidelines under the MM2H 2024 program were introduced, catching agents and applicants off-guard with even stricter conditions. The latest requirements included:
- Fixed Deposit Requirement: Applicants must place at least US$150,000 (approximately RM700,000) into an FD account, higher than the previously proposed RM500,000.
- Property Purchase Requirement: Applicants are now required to buy property in Malaysia worth between RM600,000 and RM2 million, depending on the visa category.
Compared to the earlier eMM2H, these new guidelines do not make it easier for foreigners to obtain the MM2H pass. The increased financial burdens and the mandatory property purchase condition have further reduced the attractiveness of the program.
Industry Response and Future Outlook
MM2H agents have expressed frustration with the constant changes and are waiting for the Ministry of Tourism, Arts and Culture (Motac) to release detailed terms and conditions for the latest program. It is understood that Motac, along with the Home Ministry and the Immigration Department, is in the process of finalizing these details, and the reinstatement of the MM2H 2024 will be announced soon.
The frequent revisions and increasing financial requirements have contributed to the declining popularity of the MM2H program. Potential applicants are now considering alternative destinations with more favorable conditions for long-term residency.
Conclusion
The Malaysia My Second Home (MM2H) scheme, once a popular choice for foreigners seeking a second home in Malaysia, has faced significant challenges due to stricter guidelines and higher financial requirements. While the intention behind these changes is to attract high-quality participants, the impact has been a sharp decline in interest and applications. As the government finalizes the latest terms and conditions, it remains to be seen whether future adjustments will help restore the program’s appeal.
