Latest / IMI Podcasts / Sarawak Raises MM2H Investment Threshold to RM500,000 Amid Program Overhaul

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Sarawak Raises MM2H Investment Threshold to RM500,000 Amid Program Overhaul · IMI Podcasts

• 0:00
  SPEAKER_00: Sarawax Malaysia.
• 0:01
  SPEAKER_00: My second home, also called as SMM2H program, will more than triple its deposit requirement to 500,000 Malaysian ringgit starting January 1, 2025, as part of comprehensive changes to the residence by investment scheme.
• 0:17
  SPEAKER_00: Tourism, Creative Industry, and Performing Arts Minister, Datuk Seri Abdulkarim Rahman Hamza, announced that the mandatory opening of a fixed deposit account with any local bank in Sarawak will apply to all applications, including spouses and dependents.
• 0:34
  SPEAKER_00: Participants must spend a minimum annual stay duration in Sarawak for 30 days a year to qualify for visa renewal.
• 0:42
  SPEAKER_00: The permits last five years and are renewable for an additional five years.
• 0:46
  SPEAKER_00: Applicants must now pay a one-off 5,000 ringgit processing fee to the State Tourism, Creative Industry and Performing Arts Ministry.
• 0:55
  SPEAKER_00: The minimum age requirement remains 30 years, and participants must stay in Sarawak for 30 days annually.
• 1:03
  SPEAKER_00: The state had approved 386 participants between August 2024 and October, generating 77.55 million ringit in fixed deposits for local banks.
• 1:16
  SPEAKER_00: Program participation grew 22.90% from 441 approvals in 2022 to 542 in 2023.
• 1:28
  SPEAKER_00: Chinese nationals lead overall participation in the program, registering 391 approved applications, followed by the United Kingdom at 350, Taiwan at 262, Hong Kong at 255, United States at 210, Singapore at 207, South Korea at 178th, Japan at 138th, Australia at 121, and Indonesia at 117.
• 2:02
  SPEAKER_00: The change also affects agent licensing, as Sarawak gained authority to manage its own SMM2H agents through powers delegated by the Federal Tourism, Arts and Culture Ministry in July.
• 2:16
  SPEAKER_00: The move, quote, represents a significant achievement for my ministry in expanding the functionality of the current SMM2H1 Stop Center, not only to the extent of processing applications, but also the licensing of SMM2H agents, end quote, Karim explains.
• 2:36
  SPEAKER_00: Under the new framework, agents must operate as Sarawak-owned companies with 100,000 ringgit in paid up capital.
• 2:44
  SPEAKER_00: Karim highlighted that the shareholders must not hold shares in another company that is also a licensed SMM2H agent because we don't want a monopoly.
• 2:55
  SPEAKER_00: The regulatory transition has forced existing agents to reapply under the new requirements, affecting 40 previously federally licensed operators who lost their permits during the change.
• 3:07
  SPEAKER_00: The new licensing requirements will come into force on January 1st.
• 3:11
  SPEAKER_00: The State Cabinet approved these comprehensive changes on October 24th.
• 3:16
  SPEAKER_00: Sarawak's program revision follows a tumultuous period in Malaysia's residence-by-investment landscape.
• 3:22
  SPEAKER_00: When the federal government imposed stringent requirements on its MM2H program in 2021, leading to a 90% drop in applications, Sarawak maintained more flexible terms, resulting in a 2,800% surge in approvals by 2023.
• 3:40
  SPEAKER_00: The federal program underwent multiple revisions, introducing a three-tier system in December 2023 and June 2024, with investment requirements ranging from 500,000 ringgit to 5 million ringgit.
• 3:54
  SPEAKER_00: The program encountered challenges in 2024 when agents had to reapply under revamped criteria in May, causing licensing delays.
• 4:04
  SPEAKER_00: In October, the government launched an investigation into agents allegedly circulating false information about the program's operational status.
• 4:12
  SPEAKER_00: Matters grew more complex when SABA launched its own MM2H program on July 2nd, 2024, offering 10-year residency permits with an 150,000 ringgit fixed deposit requirement for individuals and a minimum annual stay of 30 days.
• 4:30
  SPEAKER_00: While Sarawak's new 500,000 ringgit threshold matches the federal program's silver tier minimum, it maintains simpler overall requirements and faster processing times.
• 4:41
  SPEAKER_00: Unlike its federal counterpart, which requires a 60-day annual stay, Sarawak maintains its 30-day residency requirement.
• 4:50
  SPEAKER_00: The state also dropped its previous annual income requirement of 84,000 ringgit, diverging from both the federal program and Sabah's MM2H program, which demands monthly incomes of 10,000 ringgit for individuals or 15,000 ringgit for families.
• 5:09
  SPEAKER_00: This episode first appeared as an article by Ahmad Abbas on IMIDaily.com.
• 5:15
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• 5:22
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