KUALA LUMPUR: Stringent criteria for the Malaysia My Second Home (MM2H) programme should not be misconstrued as trying to turn away participants from the visa scheme for high-net-worth foreigners, said economist Datuk Jalilah Baba .
The former director-general of the Malaysian Investment Development Authority said the programme's rigorous prerequisites were designed to attract foreign investors of high calibre.
She said the MM2H initiative was tailored to attract foreign nationals keen on establishing Malaysia as their second home and operating base for their entrepreneurial pursuits.
The focus was on attracting top-tier investments that would not only enrich investors, but also contribute to the nation's economic landscape, she added.
The prerequisites, she said, played a dual role in the programme's design.
She said the strict criteria would deter ventures that had limited value and insufficient potential for expansion and diversification.
Jalilah said the programme's purpose transcended mere profit as it aimed to propel projects with substantial growth prospects and foster knowledge transfer in the country.
"The intention is to foster a multiplier effect that cascades benefits throughout the nation, ultimately bolstering our collective knowledge base, technological insights and skill-sharing."
She said preserving Malaysia's reputation as a hub for high-value, high-technology investments was vital.
Years of concerted efforts have been invested in cultivating a landscape conducive to such ventures, and the MM2H programme ought to align with this overarching goal.
Her perspective on the MM2H programme extended beyond financial gains.
She envisioned a synergy where foreign expertise would be transferred to local talents, fortifying Malaysia's competitive edge on the global stage.
MM2H Consultants Association president Anthony Liew said Malaysia must conclude the review of the programme's latest conditions fast or risk losing new applicants, along with economic, revenue and investment opportunities to other countries.
He said the MM2H programme saw a 90 per cent drop in applicants due to the stricter conditions, and forced foreigners to opt for Thailand, which offered a similar programme called the Thai Elita Visa.
Liew said many retirees from Japan, China, Hong Kong and South Korea were keen on moving to Malaysia under MM2H.
But he added that their inability to prove an income of at least RM40,000 a month and a waiting period of six months for approval had been a hindrance.
Liew suggested for a more nuanced approach, such as reconsider the income threshold, as some foreign retirees had passive yet inconsistent income streams.
He said potential residents were poised to infuse funds into the economy through expenditure on local travel, accommodation, international schooling and medical treatment, thus bolstering key sectors.
He added that the country could benefit from the rise of digital nomads, social media influencers and key opinion leaders wanting to work and live in Malaysia.
However, Liew said to secure foreign confidence, the government must stand firm on its conditions, which were intended to safeguard the nation's image and attract applicants of quality.
Otherwise, he said, foreigners would have a perception that the country had a flip-flop policy.
"It should be consistent and stable. Should there be any review, the government should do so after five years."
The MM2H programme was introduced in 2002 to attract wealthy foreigners to move to Malaysia and contribute to the economy through their high purchasing power or transferring niche skills.
In 2021, the government announced stricter conditions for the programme, such as increasing the monthly income treshold from RM10,000 to RM40,000.
In April, the government said it would review these new requirements, which had been described by some expat groups as hostile.