Malaysia - My Second Home Programme: FAQs

Hi Folks,

Something about "Malaysia - My 2nd Home (MM2H)" programme: Just to share some FAQs and answers based on information to the best of my knowledge as at the time of this posting.

1. When was it introduced? In 2002 by the Malaysian Government to replace what was then known as "The Silver Hair Programme (SH)".
2. What is it all about? Like its predecessor SH programme, MM2H programme encourages foreigners to come and live in Malaysia. This is done through a "Multiple-Entry" Social Visit Visa up to 10 years (depending on expiry date of your passport) that is renewable.
3. Why this MM2H policy? Policy makers believe there are great economic spin-offs for such a policy (psssst...not that Malaysia wants to be colonised again).
4. Who may apply? Citizens of ALL countries except Israel, Montenegro and Yugoslavia.
5. Why choose Malaysia? Expats with strong currency will find Malaysia the best value place outside their home country to regularly visit and live. The climate and weather are pleasant all year-long - NO cold winter, no scorching summer, no typhoon, no cyclone, no earthquake or things like - Monsoon Cup & some floods - yes; F1 - yes; Le Tour De Langkawi -Yes, World-class Medical Facilities - Yes, many rich Indonesians can vouch for this; World-class Education - being worked on; Great Variety of Foods and Cuisines - from all cultures; Exotic mouth-watering tropical fruits - Big Yes; Nice beaches, Cool highlands, Great cities; Warm, friendly and beautiful people; politically stable; foreigner-friendly; no utopia though - occasional hiccups are to be expected. That should make your stay interesting.
6. Does it allow you to work in Malaysia? What about doing unpaid charity works? MM2H Visa holders and their dependants are not permitted to work in the country except if the holders have unique skills which Malaysia needs. However, all MM2H visa holders are allowed to invest in the country. Or, to do gratuitous/unpaid charity works provided the Malaysian Immigration Department is informed.
7. Does it allow you to bring in your spouse and children? Yes, MM2H Visa holders are allowed to bring in their legal spouses, and their unmarried children who are below the age of 18.
8. Does it allow you to buy residential property? Yes, but it is not compulsory: Each foreign under this programme are allowed to buy 2 units of residential properties each above RM250,000 (above RM350,000 if in the state of Sarawak). This is 1 unit more than ordinarily allowed under existing FIC (Foreign Investment Committee) Rules.
9. What are the terms and conditions of applications? Applicant - no age limit; but age determines his financial requirements: if below age of 50, must open a RM300,000.00 Fixed Deposit (FD) account with a local Malaysian bank for at least 1 year; after which RM240,000 may be withdrawn for house purchase, medical and children education and the balance of not less than RM60,000 must be maintained throughout the period of validity of the MM2H visa. If age 50 or above, RM150,000.00 FD account with a local bank is required of which up to RM90,000.00 may be withdrawn after 1 year for house purchase, medical and children education and a balance of not less than RM60,000 must be maintained from 2nd year onwards throughout his MM2H stay. In lieu of the RM150,000 FD requirement, suffice if an applicant age of 50 or above can furnish proof of monthly off-shore income of RM10,000. (Remarks: The FD requirement - to put in FD the stipulated sums for at least 1 year - is 1 way to ensure that only the cash rich expats (not speculators, real estate or otherwise, who acquire local assets more on local bank finances rather than his own wealth) are attracted to the MM2H scheme)
   
10. Do you need a sponsor? From April 2006, a sponsor was no longer needed.
11. What about insurance coverage and medical report? Yes, a medical insurance valid in Malaysia and a medical report from a recognised medical institution are needed.
12. What are the incentives that come with it? Apart from being allowed to buy 2 residential houses as aforesaid, successful applicant also enjoys 1) Car Tax Exemption in bringing in 1 personal car from abroad or Excise Duty & Sales Tax Exemption for purchase of 1 locally manufactured car - an incentive that even the locals do not enjoy.
13. What about education for your dependants? Yes, provided "Student Passes" are applied.
14. Taxation: Successful applicant will be bound by local tax law, systems, regulations and policies.
15. Security vetting: Yes, approval is subject to security vetting by the Malaysian security agency.
16. Application procedures: Application may be made while you are in the country on a valid pass. Upon approval, the MM2H visa will be issued to you in Malaysia. [Alternatively, you may apply under this route: "...the applicant can actually apply for his MM2H visa while still overseas; he only needs to arrive in Malaysia when his application is approved, and he has 6 months do this. Upon arrival, he has to open the fixed deposit account, take a medical test, buy his insurance cover, and make a visit to the immigration department at Putrajaya to have the visa endorsed in his passport...." per Licensed MM2H Agent Matthew Yeoh (of DRI Group) in his comments (pl see below)]
17. Approving authorities: Applications can be sent directly to: The Licensing Division, Ministry of Tourism Malaysia, Level 33, Menara Dato' Onn, Putra World Trade Centre, 45 Jalan Tun Ismail, 50695 Kuala Lumpur, Malaysia. (Note: Applicants who wish to stay in Sabah/Sarawak should forward applications to the Director, State Immigration Department of Sabah / Sarawak);
18. Can You Apply Personally or Through Unlicensed Party? No! Effective June 1, 2007, all MM2H applications are to be submitted through licensed MM2H agents - there are currently about 178 of them. All are bound by "dos and don'ts" stipulated by their licensing body - the Ministry of Tourism of Malaysia.
19. Fees payable: RM 90/yr is payable for a MM2H Social Visit Visa/Pass - RM900.00 for a 10-yr visa
20. Understandable restrictions you ought to know: Participant are not allowed to be employed anywhere in Malaysia nor involved in activities deemed sensitive to local people or a threat to the security of Malaysia.
21. Is Financing Available for Purchase of Houses Under MM2H? Yes, at least 1 bank I know of offers this mortgage plan: a) Margin of Financing - up to 80%; b) Loan Tenure - 5 to 20 years or, up to 70 years of age; c) Loan Amount - RM250,000 and above; d) For Completed Residential Properties with Certificate of Fitness for Occupation; e) Interest Rate: Base Lending Rate - 1.4%. For more info, please call this bank at: 1 300 880 900
    

Should you need further information or help for introduction of a licensed MM2H agent or of residential houses to bjuy under the MM2H programme, please feel free to drop me an email. I will invite some MM2H agents to pose comments on this post and their services if time permits.

Cheers,

Douglas (Updated on 30 June 2008)

CEO/Principal

GT REALTY, 22-B, Jalan 19/36, 46300 Petaling Jaya, Selangor, Malaysia.

Email: tanhalim1@gmail.com; tanhalim1@yahoo.co.uk

(Disclaimer: While every efforts are made to provide accurate information, the author does not and could not warrant 100% accuracy. Reliance on any or all of the information is at the readers' discretion and risks. The author cannot be held liable for any loss or damage howsoever suffered in consequence of any reliance on the information provided herein in good faith.)

Calling Multi-Nationals & Expats: 2 Months' Free Stay at Mont Kiara, Kuala Lumpur

Dear Expats & Multi-National Corporations,

There is something special about Mont Kiara: When you stay there, people know that you stay in the BEST address & enclave for the expats in Malaysia! No kidding, just ask around and many discerning expats can vouch for it.

This is another good news from Mont Kiara: A developer with a tradition for excellent hospitality service (if you've been its panoramic Swiss Garden (Damai Laut) Beach & Golf Resort) now offers all respectable tenants:

• 2 months' rental free stay (in either duplex penthouses or single-floor condo apartment units) over and above the usual term of tenancy (1 yr or more) at its newest jewel-condo for fine living within 500m of Solaris Mont Kiara with comprehensive facilities and value-added features which you can judge as follows:

1) The Facilities:

• 24-hour Top Notch Security;
• Swimming & Wading Pool;
• Jacuzzi
• Lounge;
• Saunas - Male & Female;
• Cafeteria;
• Convenient Shop;
• Multi-Purpose Hall;
• Gymnasium;
• Squash Court;
• Kindergarden/Childcare Service;
• Launderette;
• Changing Rooms - Male & Female;
• and more...

The Value-Added Features:

• Centralised Monitoring system using SCADA;
• Smart Home features;
• Home Alarm System;
• Video Intercom;
• Emergency Panic Button;
• Smoke Detector;
• Air-con Points with Concealed pipings;
• Electronic Card Access System;
• Emergency Back-up Electric Supply;
• Perimeter Fencing with Sensor Beam;
• High Speed Internet Broadband ACCESS;
• SMATV point with ASTRO (satellite TV) wiring ready;
• Hot & Cold Water Piping;
• Rain Water Recycling System;
• Clothes Dryer to Individual Unit;
• Natural Gas Supply

No of Block: 1 block (2 wings); No. of Units: 210; No of levels: 20 (16 storeys + 4 levels of car parks); No. of lifts: 6 (3 for each wing); No. of stair cases: 6.

No. of Car Parks: 2 covered car parks for standard unit; 3 covered car parks for penthouses.

Maintenance Fee: RM0.23 per sq. ft.

Available for Immediate Occupancy.

Rentals (plus 2 months' free):

1. Standard Units: 1,315 to 1,996 sf/ 3 to 3+1 rooms/ RM4,300 to RM6,500 per mth;
2. Duplex P/houses: 2,353 to 3,380 sf /4+1 to 5+1 rooms /RM8,500 to RM11,000 pm. (all rentals are inclusive of maintenance fee and sinking fund. Tenant to bear own utility charges such as for water, electricity, telephone, sewerage and the likes as well as stamping fee)

Terms of Payment:

• Rental Security Deposit: 2 Months' Rental;
• Utility Security Deposit: RM2,000 (minimum);
• 1 Month Rental in Advance

Hurry, Mont Kiara latest jewel welcomes your visit and stay. For further information or viewing, please contact:

Mr. Douglas GT Tan (E 1579)

GT REALTY, 22-B Jalan 19/36, 46300 Petaling Jaya, Selangor, Malaysia.

Tel: 603-7958 8821 / 012-288 6993; Fax: 603-7958 7821

Background info on GT Realty E(3) 0698: http://groups.yahoo.com/group/gt_realty_kl/

(P/s: Owners of other Mont Kiara properties are welcome to list with GT REALTY)

Malaysia's Unprecedented Petrol Price Hike - A Whooping 41% Increase Amidst Skyrocketing Rice and Food Prices!

Dear All,

On June 4th 2008, the Malaysian Government announced, among others, that the Malaysian petrol pump price will go up 78 sen from RM1.92/litre to RM2.70/litre - a whooping 41% rise effective June 5th 2008.

It was reported that the new policy carries a 30 sen subsidy to the market price of Malaysian petrol (currently deemed at RM3/litre). And this 30 sen subsidy will be maintained every month when monthly review/adjustment is made to the petrol pump price: so that if the market price for petrol is, say, RM3.30/litre next month, the pump price will be adjusted to RM3/litre (i.e. RM3.30 less 30 sen); but, if the market price is RM2.80/litre, the pump price will be lowered to RM2.50/litre for that month.

The question of great public interest is therefore: How is this market price of Malaysian petrol arrived at - both for June 5th 2008 and every monthly review thereafter - to calculate the petrol pump price? What is the formula used? Will it be made known to the public?

Two other features of the new petrol pump price policy that many Malaysians may have mis-givings are:

1) Foreigners who drive their cars into Malaysia will (correct me if I'm wrong) also enjoy the 30 sen petrol subsidy. Why are we allowing this to happen? Why can't we plug this financial leakage and use the money for the benefits of Malaysians? The subsidy to the foreigners must stop!

2) The rebates to be given to the Malaysian private car owners appear to be not limited to 1 private car per owner - no matter how many private cars he/she owns. That means to say if a rich Malaysian owns a few private cars, say 5 cars, that qualify for cash rebates - in terms of car capacity and type (pick-up, jeep, etc.) - each of his/her 5 cars would entitle him/her to receive cash rebates. This appears to be subsidising the rich more than it should quite contrary to earlier public statements that the subsidy would only go to the poor and the lower middle income - the needy!

I am of the view that for every Malaysian who owns more than 1 private cars that qualify for cash rebates, only 1 of his many private cars entitles him to the cash rebate! It is not right at all that the more private cars he owns, the more cash rebates he recieves! The current policy is therefore seen as favouring the rich!

Another feature that the Malaysian public may not be happy about is that the policy is blatantly inflation-fuelling or pro-inflation. Why couldn't a more subtle, sophisticated or inflation-neutral approach be used?

Such an approach can involve smart chips in MyCards as suggested in my earlier posting. That approach could maintain the current petrol pump price of RM1.92/litre up to a certain litres/qouta a month for each Malaysian private car owner (regardless of how many cars he/she owns) beyond which the full market price applies. The beauty of such an approach are, namely:

• that it gives less legitimacy/reason for others to hike their prices - it is therefore not inflation-fuelling; rather, it is inflation-neutral;
• that it ensures zero subsidy for foreigners - no financial leakage/wastage;
• that no matter how many private cars a rich Malaysian owns, he enjoys only the same amount or quota of subsidised petrol just like the average or poor Malaysian private car owners;
• that the rich enjoy subsidised petrol mainly in theory only. In practice, the rich would most probably not enjoy any subsidised petrol at all because the rich would most probably not bother to give their MyCards to chauffers to slot into petrol pump readers just to enjoy subsidised petrol for say only 200 litres out of probably more than a thousand litres their many cars easily used every month. But politically, at least, the rich are not in theory and wouldn't in practice feel being discriminated on subsidised petrol entitlement!
  

The MyCard approach or its conceptual equivalent deserves serious reconsideration.

Anyway, what can the Malaysian real estate marketers do now to cushion the unprecedented 41% rise in core expenses of their livelihood? My 2-sen suggestions:

• Focus on marketing real estate near to where you live or where your office is located. Do not spread yourself too far and wide unless it is a high-ticket deal;
• Devote day-time to offline real estate marketing and night-time or free-time to Internet Marketing (http://www.gt-ibiz.com/ can help you on this - just use your credit card to pick up an affordable web hosting package with free site builder (won't be more than RM250) and start acquiring life-time Internet marketing skills now) or other secondary income sources you can think of;
• that you plan your trips to prevent unnecessary petrol wastage;
• that the 5% Service Tax threshold be raised from zero to say RM2.5 million - if the association for restaurants and eateries can raise theirs from RM500,000 to RM5 million, is there any reason why the threshold for professionals should be lowered to zero recently? Aren't resource-rich Malaysians being subjected to far too many sources of direct and indirect taxation - tolls included. Professional associations must work just as hard on this!
• that our professional fee be increased with urgency since the prices for many items have increased a lot for the past 1 year and will continue to rise sharply in days and weeks to come;
• that the proposed TNB tariffs hike in July (next month) should be aborted. Why shouldn't TNB that made good profits for the past few years be asked - just like the school bus operators, hawkers, etc. were asked - not to hike its tariffs following the unprecedented price hikes? TNB's financial wellbeing should not be considered as more sacrosanct than those of the ordinary traders and commercial entities.

For the general wellbeing of the people everywhere, shouldn't utilities essential for livelihood/earning a living such as water, electricity, fuels, sewage disposal should be nationalised instead of privitised for commercial gains? Shouldn't the governments the world all over provide these basic utilities at costs to their citizens and their local businesses so as to keep their local costs of living and doing businesses down and therby improve their purchasing power, profitability and hence quality of life as well as taxation accrued to the governments?

When costs are high, profits are low or in the red, giving tax reliefs are not helpful at all to those aggrieved by the unprecendented price hikes.

The next few days and weeks will be interesting to watch as the unprecedented petrol price hikes amid skyrocketing rice and food prices bite into the livelihoods of ordinary folks. We can only pray for goodsense and wisdom to prevail over this once blessed country of ours. Perhaps it's time now to form and activate a special Crisis Management Team that will meet daily for strategies to combat the prevailing skyrocketing prices of fuels, foods and almost everything - lest our beloved country may never be the same again!

Views and comments, please.

Douglas.
(2nd Update dated June 16, 2008)