MALAYSIA may lose more than RM776 million due to recent high rejection rate for Malaysia My Second Home (MM2H) applications by the Tourism, Arts and Culture Ministry (Motac), said MM2H Consultants Association president Lim Kok Sai.
He said the association saw a 90% rejection rate or more than 1,000 applications, which were submitted between September and November last year.
“According to the association’s estimates, if 1,000 applications are rejected in Bil 2/2020 (letters), then our country will lose more than RM776 million, losses detrimental to all sectors linked to the MM2H programme.
“According to the MM2H’s statistics for 2018, 5,610 participants have been approved. Based on the association’s estimates, RM44 billion will be brought into Malaysia, benefitting various sectors and industries,” he said at a press conference in Kuala Lumpur yesterday.
Lim added that large amounts of money were brought to Malaysia by MM2H participants through fees collection by government agencies, compulsory fixed deposits into local banks, medical check-ups, medical insurance and property purchases, among others.
He also expected the property market to be impacted by the high rejection rate.
“Though property purchase is not compulsory for MM2H applicants, about 20%-30% of them buy properties all over Malaysia.
“If they don’t come in, the number of property sales will also drop because there are no buyers,” he said.
An agent, who is managing South Korea applicants, said more than 50% of her total applications were rejected — out of 88 applicants, only 49 were not approved.
To make matter worse, one of the rejected applicants has already purchased a local property.
Lim said the high rejection rate is something new to the agents.
According to him, since MM2H was established in 2006, the percentage of approved applications is more than 90%, leaving the remaining rejected applications with the options to appeal.
However, the recent rejection letters from Motac stated that they could not be appealed, with no reason given.
Lim added that the consultant agencies would have to return the payment to the rejected applications, although their management works have been carried out.
In addition, the association’s members are already facing financial challenges due to the Covid-19 pandemic.
“We do not demand excessive or unreasonable requests, we only want a fair and reasonable response on why the applications were rejected in big numbers for all countries,” Lim said.