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Coronavirus pandemic
This Week in AsiaEconomics

Hongkongers think twice as Malaysia changes migration rules amid Covid-19, political instability

  • Applicants for the Malaysia My Second Home Scheme (MM2H) must now have a bigger fixed deposit, higher monthly income than before and pay more in processing fees
  • Visa agents say the rules are prohibitive and the ongoing political turmoil in the country is also a deterrent for Hong Kong applicants

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Protesters call for the Malaysian PM to step down in a rally in Kuala Lumpur. Photo: EPA-EFE
Vivian Chiu
Malaysia’s decision to significantly raise the income criteria for its migration scheme for wealthy foreigners may lead Hongkongers to look elsewhere, according to visa agents, who said applicants were also wary of the Southeast Asian country’s political instability.
The Malaysia My Second Home Scheme (MM2H) will reopen from October after a hiatus of one year, but with stricter criteria to ensure the applicants contribute to an economy hard hit by the Covid-19 pandemic, the home affairs ministry said this week.

All foreigners must now prove they have liquid assets worth 1.5 million ringgit (US$354,000) – up from 350,000 ringgit for those above the age of 50, and 500,000 ringgit for those below the age of 50 – though 500,000 ringgit of the funds can be used for property, health care and school fees.

Participants must have a monthly offshore income of at least 40,000 ringgit (US$9,400) compared with 10,000 ringgit previously, and must live in Malaysia for a cumulative 90 days in a year. The validity of each visa has been halved to five, and applications will be vetted by the Immigration rather than Tourism Department.

Home Affairs Ministry secretary general Wan Ahmad Dahlan on Wednesday said there would also be a cap on the number of MM2H visa-holders to ensure they did not exceed 1 per cent of the total Malaysian population, which is now 32.7 million.

“The new income conditions are more relevant as the government is targeting high-income participants with adequate capabilities. We also consider the expenses spent on children’s education in international schools for instance, and a suitable lifestyle matching their living standards,” he said.

Malaysia is battling to contain a surge in Delta variant Covid-19 cases. Photo: Bloomberg
Malaysia is battling to contain a surge in Delta variant Covid-19 cases. Photo: Bloomberg
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