KUALA LUMPUR: The increasing difficulty in getting popular visas in Thailand and Singapore could benefit Malaysia, according to insights released today by Juwai IQI co-founder and group chief executive officer Kashif Ansari.
He estimated that the modifications alone may generate RM2.7 billion in new spending in Malaysia over the next five years, as well as RM7 billion in new bank deposits and RM35 million in government application fees.
Kashif said this represents a significant opportunity for Malaysia, which is looking for investment, job creation, supply chain localisation and skilled labour.
"When other visa programmes turn applicants away, Malaysia may benefit," he said.
Singapore is making changes to one of its immigration programmes that may help Malaysia.
The new rules that go into effect on Sept 1 will make it more difficult for businesses to hire foreign workers under the popular Singapore Employment Pass visa.
Singapore expects that by making it more difficult for businesses to hire foreigners, it will promote local employment.
Kashif estimates that around 180,000 people have a Singapore Employment Pass.
"It's not clear yet how significant an impact the rule changes will have. If the number of Employment Pass visas drops significantly and companies perceive Malaysia as a friendlier environment, some companies or employees may shift to Malaysia," he said.
Thailand has also hinted that it may make significant modifications to its popular Elite Visa programme beginning October 1, potentially hiking fees by up to 500 per cent.
"The Thai media are calling the upcoming changes to Thailand's Elite Visa 'unprecedented,' even though the precise details have not been released.
"The most significant impact is likely to come from raising the cost of the visa by what industry experts suggest will be 50 per cent to 500 per cent," he said.
The Elite visa is a residency visa that is identical to Malaysia's MM2H but has over 20,000 applicants.
If Thailand modifies its visa as much as projected, Kashif believes the Elite Visa will lose market share to Malaysia.
"We estimate that the changes to the Thai Elite visa could redirect from five per cent to 25 per cent of new applicants to Malaysia instead of Thailand.
"Over five years, that could result in as much as RM7 billion in new deposits in Malaysian banks. In the same time frame, it could also lead to the government earning RM35 million in application fees and visa holders directly spending for personal consumption some RM2.7 billion," he said.
Kashif said the personal consumption estimate is based on the conservative assumption that each visa holder spends an average of US$28,320 on personal consumption per year.
MM2H rules require successful applicants to deposit a minimum of RM1 million in a Malaysian bank and to pay a RM5,000 fee.
"Thailand's Elite Visa programme competes directly with MM2H. Both focus specifically on wealthy foreigners and seek to maximise economic benefits to their country through fees and investment.
"The two countries offer attractive lifestyles, natural beauty, central locations, delicious cuisines, and a high quality of life," he said.