Migrating Hongkongers lose an exit as Malaysia My Second Home scheme suspended
- The Malaysia My Second Home scheme has grown in popularity with Hongkongers seeking respite from protests and the national security law
- But Malaysia’s sudden and unexplained suspension of the scheme – on top of Covid-19 and a spike in rejections – leaves a question mark over its future
He expected his application would be approved between July and October.
Tong has since lost almost HK$66,000 in application and rental fees, as his apartment lease began last month. He felt like he was in limbo, unable to decide what to do next and worried that his son had no school to go to for the next few months.
“My son is staying at home doing nothing,” said Tong. “Should I get my son back to a Hong Kong school first, and when MM2H restarts then I stop school again? I don’t know what I should do.”
Tong’s experience is just one example of confusion and crises that foreigners on the MM2H visa have experienced since the Covid-19 pandemic prompted Malaysia to shut its borders in March.
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Jessie Ong, director of Penang-based Overseas Living (MM2H), said she had seen at least a 50 to 60 per cent rise in the number of Hongkongers asking about the migration programme in her travel agency since the protests erupted in July 2019.
“After the protests, we are always getting phone calls from Hongkongers and they are able to decide quickly if the MM2H programme suits them. I can tell they are panicky about the situation, especially those who have kids,” she said.
Ong said an additional 30 to 40 per cent of her clients had proceeded with their MM2H applications since the protests began.
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Ken Lee, a 49-year-old engineer living in Hong Kong, has serious thoughts of applying for the MM2H pass, citing retirement perks and letting his daughter, six, study in a relatively stress-free environment. Although he has not officially applied, he has been joining MM2H Facebook groups and watching YouTube videos to learn more.
“I tried to ask many consultants and found out that agents can’t even accept my application at this point,” he said.
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SPIKE IN REJECTIONS
The MM2H programme was started in 2002 and was originally heavily promoted by the Malaysia Tourism Authority and the Immigration Department. The scheme offers foreigners multiple-entry resident visas that must be renewed every 10 years. They can buy property valued at 1 million ringgit (US$239,234) or more, and own vehicles but need a separate employment pass if they want to be actively involved in the day-to-day running of a business.
But according to Malaysian My Second Home Consultants Association (MM2HCA), rejections spiked last September. Between September and November 2019, about nine in 10 MM2H applicants were rejected without explanation, according to the association. Before that, the rejection rate was around one in 10, it said.
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“My agent has reviewed my documents and there were no problems before submission,” said a 50-year-old Hongkonger tour guide surnamed Chan, who failed to secure an MM2H pass when he applied last September.
“Now [following the suspension of MM2H], there’s no reason and no chance to appeal … all the time and money are lost and my confidence in the Malaysian government has reduced.”
Without concrete information on why the scheme was suspended, speculation among agents and applicants has grown as they play the waiting game, wondering if the government is rethinking the scheme.
Affected applicants fear the requirements will change, affecting their eligibility to migrate.
Ong has been trying to reassure her potential and existing clients, saying it is possible the government will offer more long-term incentives once the programme resumes.
A consultant for over two decades, she said she based her assessment on what happened previously. Malaysia used to have the Silver-Hair Programme to encourage wealthy retirees to settle in the Southeast Asian nation and when it transitioned to the MM2H scheme, it loosened the age restriction, from applying only to people older than 50 to all ages. The scheme now welcomes all nationals, as opposed to only Western Europeans and Japanese under the Silver-Hair Programme.
“Clients were initially worried they may not be eligible any more because of the extra costs or additional documentation. But after some explanation, they are more optimistic as they hope for long-term settlement and benefits,” she said.
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But other consultants like Sam Chan, managing director of VisaPro Immigration Consulting, are now discouraging clients from applying. Chan recommends alternative migration programmes, depending on the client’s needs.
“Without any reason and response, there’s no way to appeal. These kinds of rejection make everyone disappointed,” said Chan.
Despite the inconvenience, demand from Hongkongers seeking to settle in Malaysia may continue to rise. Although Tong has lost time and money, he still believes the programme can attract quality people and improve the country’s economic outlook.
He hopes the Malaysian government will be more transparent and improve communication with those affected by the suspension.
“With more information, at least we know what to do. We have invested so much, just like a business, and now you tell me I can’t come to your country. You have to let me know why.” ■