Shareda: Programme conditions are harsh

KOTA KINABALU: Some of the new conditions set for the Malaysia My Second Home (MM2H) scheme are “harsh” and could discourage investment in the country, says the Sabah Housing and Real Estate Developers Association (Shareda).

The association’s president Datuk Chua Soon Ping (pic) said the increase in the monthly offshore income from RM10,000 to RM40,000 is among the more “problematic” terms and could discourage potential applicants.

“The government’s move to raise the bar defeats the spirit of the programme to encourage foreigners to invest in Malaysia,” he said.

The raising of the active income requirement from RM10,000 to RM40,000 per month is unrealistic as the pandemic has affected the whole world, including the applicants, he said.

“With such a high financial requirement, the applicant actually has plenty of other options to choose from. Applicants can easily get a Permanent Residency (PR) visa in some countries, instead of just a five-year renewable social pass which MM2H offers,” he said.

He said Malaysia is now in need of foreign investments as the economy has been badly affected by the pandemic.

“The spirit of MM2H and the social pass is to attract qualified foreigners to spend more time in Malaysia, allowing social, cultural and economic exchange. Foreign spending and investment will help boost the local economy,” he said in a statement.

In times like these, Chua said that lowering the threshold to attract more foreign investment would help boost the local economy.

“We should attract more foreign knowledge workers, skilled workers, professionals and entrepreneurs who can have a positive impact on our nation,” he added.

He said there is a need to make the MM2H scheme attractive or Malaysia could risk losing it all as the country has to compete with other countries like Thailand, Singapore and Australia.