LETTERS: There has been much controversy surrounding the new requirements for the Malaysia My Second Home (MM2H) programme.
A mandatory requirement now is a monthly income of RM40,000, a hike from the RM10,000 a retiree required previously.
Realistically speaking, it is impossible to expect an ordinary foreign retiree to earn RM40,000 a month to meet this prerequisite. Based on simple mathematics on our currently abysmally low interest rates on fixed deposits, a retiree will need something to the tune of around a whopping RM48 million to earn a monthly income of RM40,000.
This requirement is definitely out of reach for most ordinary foreign retirees. Only those from extremely well to do backgrounds would be able to meet this requirement.
With this new requirement, I am of the view that ordinary foreign retirees will then look to other countries in the region. When I was in Can Tho, Vietnam in 2019, I saw many Australians who had retired there. Obviously, the conditions there are favourable for them to stay despite the language barrier.
Another comparison, in the Philippines, only a deposit of US$10,000 (RM42,000) is required and it can be used to purchase property and it comes with the proviso of an unlimited stay in the country.
Thailand attracts foreign retirees with an annual renewable visa with just a deposit of 800,000 Thai baht (RM103,000) in any local bank. Additionally, funds must be made available to cover a retiree's expenses during the stay.
For all our shortcomings though, Malaysia offers many positive attributes which can entice any foreigner-a conducive climate, absence of natural disasters, good holiday resorts, affordable travel, enormous variety of fare and a country where is cost of living is very affordable to most foreign retirees. Crime rate may be a concern, but it is not something which is a major cause of concern to foreigners.
Malaysia has faced many problems arising from the Covid-19 pandemic and the extremely low fixed deposit interest rates that has even made life difficult for our own retirees. Many Malaysians are now struggling to get a decent return on their fixed deposits as rates are around one to two percent per annum. Likewise, these foreigners too are adversely affected.
I remember not too long ago we were passionately promoting our Malaysia My Second Home Programme overseas, encouraging foreigners to retire in Malaysia. Why did the government suddenly change the terms of this policy? How will it reflect on our credibility as a nation if we suddenly implement such a drastic change? What is the driving force behind this new change?
Do we want to drive away foreign retirees who wish to spend their golden years in our country? What will the new requirements mean for retirees who are already living in Malaysia? When their visas come up for renewal, will most of them be forced to leave the country as a result of this change?
Many of these foreigners have already bought properties in our country and if they are forced to leave the country, they will have to sell their properties. They may have a tough time selling their properties under the present economic environment which is not favourable to them.
If they have to leave Malaysia as a result of this new policy, just imagine the amount in the outflow of foreign exchange from the country. And this outflow may have other adverse effects on our economy. Do we want this to happen? Definitely not.
Many of these foreign retirees are now part and parcel of our society and have integrated well in our country. I am sure most of them are not a social menace to our country. Some of them have lived here for a long time and many now feel more comfortable here than in their own countries.
For many who are so familiar with the country, Malaysia is now their home away from home. Some of them are married to locals and can speak our national language fairly well, even using local slangs. Some of them are as Malaysian as we are.
Malaysians are universally known for our warm-heartedness, friendliness, hospitality and we are backed by a history of welcoming foreigners from all corners of the globe. In fact, during my stays and visits overseas, many foreigners have always highlighted this fact to me - unique and rare traits even in many western countries.
So, do we want our international image to be dented? Surely not. The only option will be to rescind this new condition in the long term interest of our country.
BENEDICT LOPEZ
Kuala Lumpur