MM2H new rules :  Fixing something that is not broken is sheer folly and Malaysia cannot afford this now

I refer to the recent announcement by Putrajaya on the new rules for the Malaysia My Second Home (MM2H) program. These new rules have caused great inconvenience to many existing participants of MM2H. The drastic new changes include:
(a) fixed deposit of at least RM1 million and liquid assets of RM1.5 million instead of RM300,000 – RM500,000 previously;
(b) monthly income of at least RM40,000 instead of RM10,000 previously; and
(c) minimum stay of 90 days

According to the latest survey published by www.expatgo.com, 79% of existing MM2H participants do not meet the new income requirement. Of those who do meet the income requirement, 89% cannot meet the fixed deposit requirement and 90% of participants say their views of Malaysia are now somewhat worse. This survey reveals that nearly all the current participants will have to leave Malaysia. The stringent criteria and unattractive requirements will inevitably lead to a mass exodus of MM2H participants.

Many of these MM2H participants live in the Segambut parliamentary constituency. These changes announced by the Home Ministry will have an adverse impact on the housing market, private education sector, tourism (including medical tourism) and spending patterns in our local communities. This simply means the changes also significantly affect our local businesses. This unilateral announcement prior to extensive consultation with stakeholders and affected lawmakers magnifies the incompetence of the Perikatan Nasional government.

I urge our new Prime Minister to urgently review these new changes which are contrary to the original intention of MM2H and to remind his Cabinet to be mindful that Malaysia is competing with other countries in this region to attract foreign investment especially during this challenging period where our economy has been smashed. We cannot be sending the wrong message to the rest of the world during this time. These high thresholds must be reversed in the next Cabinet meeting. Fixing something that is not broken is sheer folly and Malaysia cannot afford this now.

Hannah Yeoh
MP for Segambut