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Malaysia Announces New MM2H Rules, Scraps Route to PR · IMI Podcasts

• 0:00
  SPEAKER_00: The Malaysian Tourism, Arts and Culture Ministry, also known as MOTAC, has unveiled its revised Malaysia My Second Home, referred to as MM two H program.
• 0:13
  SPEAKER_00: This is the second update the MM two H has undergone in less than a year as the government tries to make the program more attractive to high net worth individuals after the program's much maligned 2021 terms.
• 0:27
  SPEAKER_00: The new MM2H regulations maintain the three-tier framework without any income requirement structure that MOTAC introduced in December 2028, but introduced changes to the program's criteria.
• 0:41
  SPEAKER_00: The new guidelines include two considerable changes.
• 0:45
  SPEAKER_00: MOTAC has changed the residency permit under the Platinum Tier from permanent residency to a 20-year permit and lowered the fixed deposit amount for the gold tier from 2 million ringgit to 1 million ringgit.
• 0:59
  SPEAKER_00: MOTAC also announced an MM2H category for special economic zones and special financial zones, but has yet to release any details on that pathway.
• 1:10
  SPEAKER_00: The fixed deposit amounts under the new regulations are silver at 500,000 ringgit, approximately 105,000 US dollars, gold at 1 million ringgit, approximately 420,800 US dollars, and platinum at 5 million ringgit, approximately 1.05 million US dollars.
• 1:33
  SPEAKER_00: Silver tier MM2H residency permits are valid for 5 years, gold for 15 years, and platinum for 20 years.
• 1:42
  SPEAKER_00: All residency permits are renewable.
• 1:46
  SPEAKER_00: Investors can withdraw 50% of their fixed deposit after a one-year holding period to purchase a property or pay for healthcare or local tourism within Malaysia.
• 1:57
  SPEAKER_00: However, MOTAC has introduced restrictions on property acquisition.
• 2:02
  SPEAKER_00: MM2H holders can only purchase property valued at least 600,000 ringgit for the silver tier, one million ringgit for the gold tier, and two million ringgit for the platinum tier, compared to the previous regulations of 750,000 ringgit for the silver and gold tiers and 1.5 million ringgit for the platinum tier.
• 2:25
  SPEAKER_00: Under the withdrawal and minimum property value restrictions, platinum tier MM2H holders can withdraw a maximum of 2.5 million ringgit, but must purchase a property for at least 2 million ringgit.
• 2:40
  SPEAKER_00: The gold tier allows a maximum withdrawal of 500,000 ringgit and acquire a property of at least 1 million ringgit, while the silver tier can withdraw a maximum of 250,000 ringgit and must acquire a property valued at 600,000 ringgit.
• 2:57
  SPEAKER_00: MM2H holders, regardless of tier, cannot resell their property for 10 years.
• 3:04
  SPEAKER_00: However, they can upgrade to a property with a higher value during that period.
• 3:09
  SPEAKER_00: MOTAC has maintained the MM2H's previous dependent parameters, allowing main applicants to add their spouse, dependent children, and dependent parents to their application.
• 3:22
  SPEAKER_00: To qualify, main applicants must be at least 25 years old.
• 3:27
  SPEAKER_00: Applicants must also reside 60 days a year in Malaysia, irrespective of their tier.
• 3:33
  SPEAKER_00: The new regulations maintain residency flexibility, though, as the principal applicant or dependents can fulfill the physical residency requirement on behalf of MM2H holders aged 25 to 49.
• 3:48
  SPEAKER_00: MOTAC revision of the MM2H has led to licensing delays, and agents must now qualify under the revamped criteria to renew their licenses.
• 3:59
  SPEAKER_00: MOTAC Minister Datuk Seri Tion King Singh addressed the subject saying, We have no intention of making things difficult for anyone.
• 4:08
  SPEAKER_00: Instead, we hope to establish a more complete mechanism to protect the interests of all parties.
• 4:15
  SPEAKER_00: The updated requirements for renewing a license are as follows Company Structure Must be a private limited company incorporated under the Companies Act 2016, Act 777.
• 4:30
  SPEAKER_00: Capital Requirements Minimum paid up capital of 200,000 ringgit.
• 4:37
  SPEAKER_00: Bank account.
• 4:38
  SPEAKER_00: Only shareholders and directors or officially appointed individuals can sign company bank accounts.
• 4:45
  SPEAKER_00: Shareholders must be 100% Malaysian citizens or Malaysian owned entities.
• 4:51
  SPEAKER_00: Conflict of interest.
• 4:53
  SPEAKER_00: Shareholders must not have equity in any licensed.
• 4:57
  SPEAKER_00: MM two H company under the Tourism Industry Act 1992, Act 482.
• 5:05
  SPEAKER_00: Foreign involvement.
• 5:07
  SPEAKER_00: Foreign individuals, chore companies, cannot hold shares but can be board members with approval and must not be MM2H participants.
• 5:17
  SPEAKER_00: Board Composition At least 51% of the board must be Malaysian citizens.
• 5:24
  SPEAKER_00: Employment At least 51% of management and professional employees must be Malaysian citizens.
• 5:32
  SPEAKER_00: Company name must include MM2H in the registration with the company's Commission of Malaysia.
• 5:40
  SPEAKER_00: Business Nature The nature of the company's business in SSM must state MM2H related activities or consultancy.
• 5:50
  SPEAKER_00: Operating area, headquarters and branches must operate in urban areas within the city council or municipal areas.
• 6:00
  SPEAKER_00: Minimum office space of 100 square feet for headquarters and branches.
• 6:05
  SPEAKER_00: Foreign entities must register any foreign entities businesses dealing on behalf of the company for MM2H promotion, recruitment, contract notification, must notify the commissioner of any contracts with foreign entities within 30 days.
• 6:25
  SPEAKER_00: Service fees.
• 6:27
  SPEAKER_00: MM2H operators can charge service fees of 70,000 ringgit for platinum, 55,000 ringgit for gold, 40,000 ringgit for silver, and 40,000 ringgit for special zones.
• 6:40
  SPEAKER_00: Deposit collection.
• 6:42
  SPEAKER_00: Operators can collect up to 20% of the total service fee as a deposit.
• 6:48
  SPEAKER_00: Bank guarantee must provide a bank guarantee of 200,000 ringgit for participant compensation and protection.
• 6:57
  SPEAKER_00: Contract compliance must comply with set service fee rates and deposit percentages.
• 7:03
  SPEAKER_00: Standardized agreement must prepare standardized terms and conditions for MM two H participant agreements.
• 7:12
  SPEAKER_00: Legal compliance must be free from any penalties under the Tourism Industry Act nineteen ninety two, Act four eighty two, or the Tourism Vehicles Licensing Act nineteen ninety nine, Act five ninety four, and have no outstanding claims in the Malaysian Consumer Claims Tribunal.
• 7:30
  SPEAKER_00: This episode first appeared as an article by Ahmad Abbas on IMIDAily.com.
• 7:36
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• 7:44
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