Blessed with rich biodiversity, stunning landscapes, and cultural diversity, it comes as no surprise that Sarawak often holds a special place in visitors’ hearts.
Visitors who are drawn to the Land of Hornbill’s lush rainforests, pristine beaches, and majestic mountains would often return to do more exploration and adventures.
For those who are escaping harsh cold weather back in their homeland, Sarawak offers winds of change where they get to enjoy endless rays of sunshine and a slower pace of life with calmer surroundings.
It is a norm for those living in parts of the world that have four seasons to escape the miserable cold for somewhere with more sun, so they are often in search of a second or holiday home abroad.
The Malaysia My Second Home (MM2H) programme was first introduced in 2002 as an option for foreigners to stay for an extended period and make Malaysia as their second or holiday home.
This programme is a rebrand of the Silver-Haired Programme (SHP) introduced in 1987 which was opened only to nationals of Japan and Western Europe.
The success of these two programmes is evident through some 53,356 pass holders who are still active, and these numbers are continuing to increase, especially in the context of Sarawak.
CHOOSING SARAWAK
According to Aramaz Borneo (MM2H) Sdn Bhd managing director Jonathan Eng, Sarawak is in a unique position as it can offer prospective pass holders beyond bountiful greenery in their backyard.
Besides political stability and lesser populations compared to other parts of Malaysia, he said one of the selling points for the state is how it is safe from any natural disasters which cannot be replicated anywhere else in the world.
“One of the important things that prospective pass holders prioritise when it comes to selecting a country for their holiday or second home is safety. We are very safe and peaceful in Sarawak, which is something we have been blessed with.
“For example, if you go to Japan, it is a beautiful and very developed country, but it is prone to episodic earthquake and tsunami occurrences.”
Eng, who has been in the business for 15 years, said the Covid-19 pandemic has led people to look for better places to go to, be it for holiday or as a place to call home.
With Sarawak’s population being just below three million despite it being the largest state in Malaysia, he said there is plenty of space for everyone.
“Moreover, the cost of living is slightly lower in Sarawak compared to other states or countries. We do not have tolls here and parking in a shopping mall or designated areas by the local councils are affordable.”
Eng said the response for Sarawak Malaysia My Second Home (S-MM2H) has been encouraging, particularly with the end of the pandemic.
However, he pointed out that there is still much to be done in terms of promoting the state and programme to the world.
“When I was based in Kuala Lumpur, numerous promotional efforts were made to promote states like Johor and Penang, but not so much on Sarawak. Sarawak is an attractive product, thus more should be done to promote it.”
APPLICATION PROCEDURE AND PROCESS
The S-MM2H programme is under the purview of the Sarawak Ministry of Tourism, Creative Industry and Performing Arts and it is open to citizens of all countries except for Israel.
Aramaz Borneo Sdn Bhd director Winston Gerard Jingie disclosed that there are several criteria and requirements that must be met by applicants.
He explained that there are three age categories that applicants can choose from, namely 30 to 39 years old; 40 to 49 years old; 50 years old and above with each category having its own additional requirements.
The applicants who are in the 30 to 39 years old category must have children under the age of 21 who are continuing their studies in Sarawak or undergoing long-term medical treatment in Sarawak and certified by a private/government physician registered with the Malaysian Medical Council.
As for the 40 to 49 years old category, the two requirements mentioned are applicable and they must own a residential house in Sarawak with a price value of at least RM600,000.
“All applicants must submit the required documents such as main applicant resume, S-MM2H application form, letter of good conduct from origin country, certified copy of passport, proof of financial capability and medical report among others.
“For proof of financial capability, all applicants must open a fixed deposit account of RM150,000 for individuals or RM300,000 for couples respectively at any local bank in Sarawak.
“Likewise, all applicants who are 50 years old and above must have pension funds or offshore income of RM7,000 for individuals or RM10,000 for couple respectively.”
For licensed agent companies, Winston said they would take the initiative to do background checks on the applicants to see whether they meet the requirements.
“Once the applicants have provided the necessary documents and everything is in order, we will plan for them to come over to Sarawak for their medical report and assist them to open a bank account for fixed deposit.”
He explained that all applications are submitted to the Ministry of Tourism, Creative Industry and Performing Arts with expected processing duration of 90 days.
However, this is usually not the case considering various factors such as the high number of applications received by the ministry and delays due to incomplete or missing documents.
“The waiting period for approval can be rather lengthy, which is a challenge and disadvantage.
“There have been applicants who backed out because they no longer wish to wait, and they began looking at other countries like Thailand who are offering similar programme.
“Due to the lack of a system which allows licensed agent companies and applicants alike to check on their application status, we are often left in the dark when it comes to finding out the latest updates.”
ENGAGING LICENSED AGENT COMPANIES
While applicants have the freedom to submit their S-MM2H application for themselves, ArunAmi MM2H Sdn Bhd managing director Azreen Octavious said engaging licensed agent companies provide convenience in various aspects.
He said licensed agent companies would facilitate the application procedure and process, so applicants do not have to navigate or group around by themselves.
“To simply put it, we know what to do. We ensure that all necessary documents are ready, and we would help to follow up with the relevant authorities on their application status.
“If applicants are doing the application by themselves, the travel distance and time difference would make it challenging for them to be presence on a short notice if the relevant authorities needed to see them.”
Azreen said while some applicants opt to have a personal sponsor for their application, this may pose challenges at times.
He pointed out that sometimes personal sponsors are unable to commit to follow up appointments with the relevant authorities or cannot be contacted in a worst-case scenario.
“Personal sponsors may not be in the state all the time due to other matters they have to attend to, or they could just simply disappear. With licensed agent companies as a sponsor, there would be no such issues.
“The company’s directors may come and go, but any member of staff can handle the applicants’ application and do it on their behalf. Thus, there is no element of uncertainty, and it is more convenient for the applicants.”
While the number of applicants would vary for each licensed agent company, Azreen said it can be deduced that the demographic comprises a healthy mixture of those from western and non-western countries.
He said some of the applicants apply for their S-MM2H pass prior to their retirement while families are eager to let their young children experience Sarawak’s rich culture and heritage as they grow.
“Majority of the applicants wish to have a better quality of life which is why they choose to have a holiday home or relocate to different parts of the world like Sarawak.
“While they do live a comfortable life back home, they realise that they can do much more somewhere else that is cheaper in comparison.”
ROOM FOR IMPROVEMENTS
Borneo Amazing Home (MM2H) Sdn Bhd director Hapaline Bulat Lonsa pointed out that there are many things that can be done to further improve the implementation of S-MM2H.
She said the Ministry of Tourism, Creative Industry and Performing Arts should do more engagements with key players like licensed agent companies to get their feedback which would go a long way in ensuring the smooth implementation and success of S-MM2H.
“Considering that we are the ones who are going through the application process and procedures on behalf of applicants, we can provide suggestions for improvements, so things are more efficient and effective.
“This can be done through dialogue sessions or discussions with key stakeholders. Similarly, the ministry should consider getting key stakeholders’ opinions on proposed changes to the programme’s policies or requirements before implementing it so that we are well informed as well.”
As the ministry is gearing towards online application submission, Hapaline said this is a good initiative to streamline the application process and procedure.
“This is a step in the right direction because going digital reduces the risk of documentation loss or being misplaced. However, we noticed that there are still some hiccups here and there so we hope that this will be improved on.”
At the same time, Hapaline suggested that the state government and ministry promote Sarawak overseas more given that the state is still a hidden pearl of Malaysia.
She pointed out that the state government should consider highlighting and providing benefits that applicants can enjoy when they choose Sarawak as their second home.
“I think this is very important because if we want to sell a product, we must make sure it is attractive or otherwise no one is going to buy it. We cannot solely rely on the ‘Sarawak is a beautiful place’ card, because prospective applicants want to know what is in it for them.
“Through the requirement of each applicant must make a RM150,000 fixed deposit, the state is benefiting financially from this.”
For example, Azreen managed to bring RM15mil in fixed deposits through clients last year and this does not include other licensed agent companies.
With formation of Kuching SMM2H Consultants Association, Hapaline, who is the deputy president, hoped that all licensed agent companies will come together and work towards making the programme a success.
“Through this association, we hope that our voices will be heard by the ministry and for them to take our thoughts and opinions as the frontliners in this industry into consideration.”
Through Aramaz Borneo, ArunAmi MM2H and Borneo Amazing Home (MM2H), successful applicants were thrilled to share their experiences, what led to their decision of selecting Sarawak as their second home, and the challenges they faced during the application process in the next part of this series.
