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Sarawak can issue tourism licence for S-MM2H agents

KUCHING: The state Tourism Ministry is now the issuing authority for the local tourism business licence, including the handling agent licence for Sarawak-Malaysia My Second Home (S-MM2H).

Minister Datuk Seri Abdul Karim Hamzah said here today that the federal Tourism, Arts and Culture Ministry had delegated the power to his ministry last July.

Karim said the delegation of powers would allow his ministry to expand the S-MM2H One Stop Centre to process applications and licensing of S-MM2H agents.

The issuance of tourism business licences had been a bone of contention between the federal and state governments.

Putrajaya had control of tourism licensing in Malaysia through the federal Tourism Industry Act 1992.

The federal government's attempt to streamline regulations raised concerns from Sarawak about potential encroachment on its jurisdiction.

The 40 licensed S-MM2H handling agents in the state, whose licences were frozen in the exercise to streamline regulations, must now navigate new licensing requirements to get back in business.

The new licensing requirements for the agents are:

  • THEY must be a private limited company (Syarikat Sendirian Bhd) incorporated under the Companies Act 2016 (Act 777);
  • THEY must comply with the issued paid-up capital requirement;
  • THEIR shareholders must be Malaysian citizens and Sarawak-born individuals or entities owned by Sarawak natives;
  • FOREIGN nationals are not permitted to be members of the board of directors;
  • BOARDS of directors must be Malaysian citizens, with a minimum of 51 per cent being Sarawak-born individuals;
  • SHAREHOLDERS must not have any interest (share equity) in any other S-MM2H companies licensed under the Tourism Industry Act 1992 [Act 482];
  • PARENT companies or branches may operate anywhere in Sarawak;
  • S-MM2H operator companies may charge service fees to participants at rates consistent with the stipulations under the Price Control and Anti-Profiteering Act 2011 [Act 723];
  • On the number of applications for S-MM2H, Karim said from 2007 to 2019, 1,240 participants were approved.

    From 2020 to August this year, 1,462 participants were approved.

    The top 10 countries where the participants came from were: China, the United Kingdom, Taiwan, Hong Kong, the United States , Singapore, South Korea, Japan, Australia and Indonesia.

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