The recent overhaul of Malaysia’s My Second Home (MM2H) program, aimed at attracting a larger pool of foreign residents, has sparked optimism in the country’s property sector. The three-tiered structure and updated financial requirements introduced by the Tourism, Arts, and Culture Ministry aim to make Malaysia an even more appealing second home destination.

While the revised MM2H program is viewed as an improvement over its predecessor, concerns linger about its overall attractiveness and impact on the economy. Professor Geoffrey Williams, an economist and Provost for Research and Innovation at Malaysia University of Science and Technology, believes that despite the changes, the program still appears more as a revenue-raising initiative for the Immigration Department than a genuine effort to encourage expatriate residents.

Williams notes that the MM2H program might primarily attract high-income individuals seeking tax avoidance strategies rather than those genuinely interested in contributing to the local economy. The lowered minimum age requirement and expanded range of eligible dependents may not be sufficient to position Malaysia competitively against neighboring countries with similar programs.

The introduction of the Premium Visa Program (PVIP) in September 2022 reflects the government’s attempt to attract wealthy foreigners through a “Residency Through Investment” concept. However, Williams argues that this approach may not be enough to repair Malaysia’s reputation, as other countries offer better schemes and lower living costs.

The MM2H program, initially launched in 2002 to attract retirees, was suspended in 2019 and relaunched in 2021 with more stringent conditions. According to RHB Research, the stricter criteria led to a significant decline in MM2H applications, representing only 2.8% of the residential transaction volume.

PVIP, designed to raise funds quickly, faced challenges due to its high upfront processing fees. Williams emphasizes the need for a positive sentiment and a welcoming environment, suggesting that the government should focus on creating an attractive long-term option for foreigners.

While analysts from research houses like RHB Research and HLIB Research see potential benefits for key property developers like UEM Sunrise Bhd, Sunway, and Eastern & Oriental Bhd under the new MM2H program, concerns about competition from neighboring countries persist. Thailand and Indonesia have launched similar programs in recent years, intensifying the competition for attracting foreign residents.

TA Research, maintaining an “overweight” stance on the property sector, anticipates positive effects on the real estate market but suggests the removal of the high monthly income requirement to enhance the program’s appeal. Comparisons with other countries like the Philippines, Indonesia, and Cambodia, which do not impose stipulated minimum income requirements, highlight potential areas for improvement.

PropertyGuru Asia Real Estate Summit (ARES) 2023, the ninth edition of Southeast Asia’s leading property technology company’s thought leadership platform, recently concluded its highly anticipated event. With a focus on the theme “Powering Communities,” the summit brought together over 400 global delegates for a hybrid conference, delving into the future of communities, business, leisure, and innovation.

The theme “Powering Communities” aligns with PropertyGuru Group’s vision of empowering individuals in their property journeys to live, work, and thrive in tomorrow’s cities. Hari V. Krishnan, CEO & Managing Director of PropertyGuru Group, emphasized the company’s commitment to guiding stakeholders at every step, from homebuyers finding their dream homes to enterprise clients making strategic investments.

The first segment of ARES 2023, titled “Live: Future of Communities,” featured insightful keynote addresses and discussions. Sumana Rajarethnam, Director, South-East Asia, Economist Intelligence Corporate Network, provided a perspective on new economic drivers and the outlook for Asia in 2024. Dr. Edlam Abera Yemeru from UN-Habitat discussed adoptive communities and the creation of Sustainable Development Goal (SDG) Cities, while David Gissen explored the concept of the one-storey city.

The second segment, “Work: Future of Business,” covered topics like the creative evolution of workspaces and hybrid work arrangements. A tech panel led by Manav Kamboj, CTO and Managing Director, Fintech at PropertyGuru Group, discussed the use of A.I. in design, digital twins, and metaverse blockchain technologies.

The morning sessions concluded with a presentation from PropertyGuru For Business, showcasing investments in data science to develop products and solutions for enterprise customers. The session highlighted the company’s commitment to unlocking value for businesses and enhancing urbanism and liveability through data intelligence.

The afternoon sessions, titled “Thrive: Future of Leisure,” featured discussions on building affordability in megacities, destination dining, the rise of pet culture, and demographic changes reshaping property markets. The segment demonstrated a holistic approach to thriving in urban environments, encompassing various aspects of leisure and lifestyle.

ARES 2023 maintained its commitment to diversity, with half of the expert lineup comprising women and/or members of the LGBTQ+ community. The inclusive event featured an Expert Talk on inclusive language in real estate for minorities and people with disabilities, emphasizing the importance of embracing diversity in the industry.

The final segment, “Thrive: The Future of Innovation,” included a keynote from India’s Vinu Daniel, Founder of Wallmakers, who received the PropertyGuru Visionary Award for sustainable designs using mud and debris. The Leaders Panel discussed multi-sector real estate, industry resilience, and challenges in sustainable development, while a talk on the future of digital innovation concluded the summit.

PropertyGuru Week, featuring ARES 2023, Real Estate Leaders’ Roundtable, and the Asia Property Awards Grand Final, celebrated industry excellence and innovation. The week emphasized the company’s dedication to fostering collaboration, innovation, and sustainable development in the real estate sector.

The ARES VIP Cocktail Party honored industry leaders, recognizing their contributions to the spirit of “live, work, thrive.” The Power Women of 2023 included Andrea Savage, Chelsea Perino, Coco Liu, Esther An, Hang Dang, and Joanne Kua.

About The Meg @ Andaman

The first project in Andaman Island, the highly-anticipated prime reclaimed island of Seri Tanjung Pinang Phase 2A by E&O. Features two blocks of 27 and 34-storey serviced apartments with an estimated GDV of RM690 million. It comprises 1,020 residential units with innovative layouts designed to suit young executives and new families.

Find out more about The Meg @ Andaman

Villa Industrial Park, a light industrial park development by Villa Acres Development Sdn. Bhd. in Permatang Tinggi. Located near Jalan Kampung Manggis, conveniently connected via Jalan Permatang Tinggi. It is about a 5-minute drive to AEON Mall and Lotus in Alma, in close proximity to nearby industrial parks such as Bukit Minyak Industrial Park and Asas Jaya Industrial Park.

This development will feature four distinct layouts for light industrial units, offering a total built-up size ranging from 7,700 sq. ft. to 12,700 sq. ft. The indicative pricing starts from RM3.7 million onwards.

Project Name : Villa Industrial Park
Location : Permatang Tinggi
Property Type : Light Industrial
Total Units: 17
Built-up Size: 7,700 sq.ft – 12,700 sq.ft.
Tenure: (to be confirmed)
Indicative Price: RM3,700,000 onwards
Developer : Villa Acres Development Sdn. Bhd.

DISCLAIMER: This article is solely based on research done using publicly available data. This is not an advertisement. Any claim, statistic, quote or other representation about a project or service should be verified with the developer, provider or party in question.

The Tourism, Arts and Culture Ministry has unveiled a revamped version of the Malaysia My Second Home (MM2H) programme which now has three tiers – Silver, Gold and Platinum.

Minister Datuk Seri Tiong King Sing (pic) said each tier will have specific eligibility requirements.

The type of entry visa available to applicants will also vary according to the tier for which they qualify.

“The objective is to simplify the often-criticised MM2H application procedures by introducing more flexibility and clarity,” he said in a statement on Friday (Dec 15).

Tiong is on a working trip to China; the announcement comes after bilateral discussions and promotional activities with Chinese platforms during his visit, which focusses on collaborative marketing efforts.

He said the unveiling aligns with the upcoming 50th anniversary of diplomatic relations between Malaysia and China in 2024, positioning MM2H as a special gift to mark this milestone.

Tiong was confident that the revamped programme would attract a wider pool of applicants, fostering global interest in Malaysia as a second home destination.

He said the revamped programme will be run as a trial for one year and remained open to adjustments based on evolving circumstances to ensure that it stayed relevant and effective.

The revised system makes several changes to eligibility criteria.

The minimum age requirement has been lowered to 30 years, opening the door to more people who seek to make Malaysia their second home.

Applications can only be submitted through licensed MM2H agents accredited by the ministry under the Tourism Industry Act 1992 as a way to make the process more streamlined and secure.

Another significant change is an expanded list of eligible dependents.

In addition to spouses, children below 21 and children with disabilities, the programme now covers all children between 21 and 34 years old who are not working in Malaysia or married.

Furthermore, parents and parents-in-law are now eligible to be included as dependents.

Under the Platinum tier, participants must have a fixed deposit (FD) of RM5mil (approximately US$1.05mil). After one year, a maximum withdrawal of 50% is allowed for property purchase (with a minimum value of RM1.5mil and above), healthcare and domestic travel within Malaysia.

The Gold tier sets the FD requirement at RM2mil (approximately US$420,800) with similar withdrawal provisions for property purchases (minimum value of RM750,000 and above), healthcare and domestic travel.

The Silver tier requires RM500,000 (approximately US$105,000) in FD with similar withdrawal provisions.

Irrespective of the chosen tier, all participants must fulfil the minimum stay requirement of residing in Malaysia for a cumulative total of 60 days annually.

The MM2H programme was reactivated on Aug 11, 2021 with revised conditions, after being put on hold for a year because of the Covid-19 pandemic.

Under the 2021 conditions, participants must spend a minimum of 90 cumulative days in the country annually, have an offshore income of at least RM40,000 per month (increased from RM10,000), and maintain a fixed deposit account of at least RM1mil.

A maximum withdrawal of 50% is allowed for property purchase or spending on health and children’s education.

Many, including Johor Ruler Sultan Ibrahim Almarhum Sultan Iskandar and stakeholders, said the revised conditions were too restrictive and unattractive to potential applicants.

Source: TheStar.com.my