SINCE its implementation in 2007, a total of 2,043 applicants have enrolled in the Sarawak Malaysia My Second Home (S-MM2H) programme.
These applicants are from United Kingdom, China, Taiwan, Hong Kong, Singapore, the United States of America, South Korea, Indonesia, Australia and Japan.
Sarawak Deputy Minister for Tourism, Creative Industry and Performing Arts, Datuk Sebastian Ting said the S-MM2H programme is another great tourism product that Sarawak has to offer to the world.
He said most applicants have visited Sarawak prior to making their decision to enrol for the S-MM2H programme.
“The S-MM2H is a great programme to attract those who would like to come and stay for an extended period in Sarawak.
“We are very pleased that those who are 50 years old and above have chosen to spend their retirement time in Sarawak instead of their own country.
“As for families with young children, we are delighted that they have chosen Sarawak to be their children’s growing grounds where they would come to learn and experience the state’s rich biodiversity, culture, and heritage.”
Ting explained that the programme provides successful applicants with a five-year visa with an extension of five years on approval, and upon expiration, there are pass holders who opt for renewal.
“Last year, there were 411 successful applicants who came from all over the world. From January to May this year, we have already approved 238 successful applicants. We believe that the figures for this year will surpass last year’s.”
Ting pointed out that the financial requirement for S-MM2H programme is one of the key factors that is favourable among applicants.
For proof of financial capability, the S-MM2H programme requires all applicants to open a fixed deposit account of RM150,000 for individuals or RM300,000 for couples respectively at any local bank in Sarawak.
Applicants who are 50 years old and above must have pension funds or offshore income of RM7,000 for individuals or RM10,000 for couples, respectively.
“For the Malaysia My Second Home (MM2H) programme in Peninsular Malaysia, the financial requirement is for each applicant to make a fixed deposit of at least RM1mil or minimum offshore monthly income of RM40,000.”
PROCEDURE AND PROCESS
The Ministry of Tourism, Creative Industry and Performing Arts is the agency responsible for the S-MM2H programme.
Ting explained that the ministry has established a One-Stop Panel to vet through and approve applications to ensure all are processed and approved promptly and efficiently.
He said the committee would meet every month and minister Datuk Seri Abdul Karim Rahman Hamzah is the committee’s chairman.
“Our minister is very focused and committed about the S-MM2H programme, which is why we would meet once and sometimes twice a month.
“The meeting usually involves the ministry’s permanent secretary as well as representatives from Royal Malaysian Police, Immigration Department, Ministry of Health and attorney-general’s department.”
CHALLENGES AND THE WAY FORWARD
Ting admitted that the duration of process for application approval is unfortunately taking longer than the ministry would like.
Noting how the pandemic halted the response towards the programme, he said the ministry did not expect that the number of applications experienced a steep increase when borders reopened.
During the pandemic, the number of approved applications dropped to 27 in 2021 as compared to previous years – 66 in 2020, and 224 in 2019.
To address the challenges posed by the pandemic, the ministry introduced the S-MM2H Enhanced Requirement and Regulations in Sept 2020 and 2021 to ensure the programme continues to benefit Sarawak.
Since the implementation of S-MM2H Enhanced Requirement and Regulations, there was an increase of 1,422 per cent or 411 of successful applications in 2022.
“I would like to apologise to those who have been waiting a long time to hear about their applications. Once we receive applications, of course we try to process it within 90 days.
“However, we cannot meet this deadline considering the high number of applications received. Some applicants may experience delays due to incomplete documentations, so there is a need to notify and wait for them to send over the necessary documentations.”
Ting assured that the ministry is taking this matter seriously by taking initiatives like increasing their number of staff, going digital through online application submission, and working more closely with the relevant authorities.
He said they are streamlining the process and procedure so that the duration would be shorter.
“At the same time, I would like to encourage the various stakeholders to work together with the ministry so that we can further improve the programme and contribute to its success.”
To further facilitate the application process and procedure, Ting said the ministry has issued conditional approval to applicants for certain necessary documents such as medical reports and letters of good conduct from their country of origin.
“We understand that some applicants are submitting their application while they are still in their country of origin. We allow them to provide medical reports from their medical provider until such a time they are in Sarawak and able to go to a hospital here for their medical checkup.
“This is similar to the requirement of opening a fixed deposit account at a local bank.”
On the three age group categories in the MM2H and S-MM2H programme, Ting said the ministry is considering narrowing it down to two categories only, namely 30 to 49 years old and 50 years old and above.
He said this is following feedback from applicants who did not entirely fit or meet the different requirements in the three age group categories.
For instance, there are applicants who fall in the 30 to 39 age group interested in purchasing a property in Sarawak. However, this requirement is only applicable to those who are in the 40 to 49 age group.
S-MM2H pass holders are permitted to purchase property in Sarawak and the property must at least be RM600,000 in value.
“The feedback was brought up to the committee who decided to combine the 30 to 39 years old and 40 to 49 years old together. The decision was made in May, and it will be implemented on Aug 1.”
ECONOMIC SPILLOVER
Sarawak is benefitting economically from the mandatory requirement of S-MM2H applicants to open Fixed Deposit in local banks.
S-MM2H applicants are required to open a fixed deposit account in the state whereby single applicant are required to deposit RM150,000 whereas RM300,000 for couple application.
Ting said approved applicants are required to stay at least 30 days annually in Sarawak as one of the conditions for consideration of extension and renewal of their passes.
“Previously, applicants were required to have a minimum stay of 15 days annually. Considering a longer stay in Sarawak, this means there will be increased spending by the applicants which will benefit the local economy.
“Moreover, spending more time in the state will also encourage more social and cultural exchanges and interactions between the local people and participants.”
As for applicants who are below 60 years old, Ting said they are required to purchase medical insurance for themselves and dependents as part of requirement before obtaining the S-MM2H sticker.
“The property sector has seen a notable growth where potential revenue is generated through S-MM2H property investment by purchasing of houses by those who are in the 40 to 49 years old category.”
Touching on how some applicants are experts in their respective fields, Ting said it was decided that they are allowed to work, be employed, or involved in active investment and business during participation duration of the programme.
He said this is subjected to terms and conditions such as they must be professionals or investors and it is also subjected to the approval from the state government.
“The committee decided that if the applicants want to contribute to Sarawak, they can write to our ministry. We will provide a recommendation letter for the state government’s consideration.
“Applicants who wish to set up a company or business in the state can also do so through a sleeping partner. The company or business must be 51 per cent Sarawakian and 49 per cent foreigner.
“Of course, they will need to write to our ministry and the approval is subjected to the state government’s discretion.”
Ting pointed out that this is among the things that the ministry is looking to improve and adopt, adding that is to ensure that the programme is not only successful, but sustainable in all aspects.
“In the long run, I wish success for this programme. Not just for the stakeholders, but the people of Sarawak and applicants to have a win-win situation.
“We hope that visitor arrivals and tourism receipts can be increased through promoting Sarawak as an international second home destination and hit our Post Covid-19 Development (PCDS) 2030 target of having 7.5 per cent growth in visitor arrivals and 11 per cent contribution to the region’s gross domestic product (GDP).”
At the same time, Ting commended licensed agent companies who have been actively promoting Sarawak and bringing in more applicants under the S-MM2H programme.
He said there were only eight licensed agent companies at the beginning of the programme’s implementation in the state, but the number has increased to 30.
“I was informed that there is one licensed agent company who brought in about 200 applicants which is very impressive. I would like to congratulate all licensed agent companies for their effort as it is good for both Sarawak and its people.”
