2009-Feb. Proof of Source of Income could be Abolished

[HIDDEN]

I heard a snippet on the RTM news at 0800 hrs this morning, that under new rule changes about to be introduced to help increase the uptake of MM2H membership, and assist the faltering housing market, proof of source of income would no longer be required.
There were no further details, but it sounds like the 'only Government pensions will qualify' rule has been dropped, and also presumably if your source of income is from "illegal activities" no one is bothered

I have searched the local papers online,& the Govt MM2H website but can see no reference to this

More later no doubt

[HIDDEN]

Hi I am not sure if it is okay to reproduce the whole article if so please remove it. Thanks.

http://www.bernama.com/bernama/v5/newsgeneral.php?id=387961

Malaysian Govt Eases Requirements For MM2H

From Jocelyn Ann Dragon

SAPPORO (Japan), Feb 5 (Bernama) -- The Malaysian government is set to ease the requirement for participating in the Malaysia My Second Home (MM2H) programme to boost the country's property sales and the programme's participations.

The proposed relaxation, among other things, includes abolishing the requirement to disclose the source of participants' income.

Tourism Minister Datuk Seri Azalina Othman Said said that the proposed relaxation had been discussed at the Special Cabinet Committee on Tourism and submitted to the cabinet for consideration.

Following that, she said, the cabinet requested the Tourism Ministry to find the mechanism for its implementation.

"We received feedback that most of the participants feel insulted when they were asked to reveal their income.

"We were informed that other countries do not practise such ruling," she told a news conference at Doshin Hall here.

Earlier, Azalina delivered a speech to more than 1,000 people attending the Malaysia Longstay Seminar organised by the Tourism Malaysia in collaboration with Hokkaido Shimbun.

"Among matters that will be scrapped is the requirement to reveal the participants' source of income. It's a sensitive and personal matter," Azalina said.

Azalina said from 2002 until 2008, there were 12,566 foreigners who had participated in the MM2H programme, with the Japanese ranking the second biggest with 921 participants.

She said the strict immigration ruling would also be eased to allow participants and their spouses with special skills to work on part-time basis.

"These are hindrances that discourage foreigners from participating in the programme," she said.

She said changes would also be made to the requirements including permitting foreigners married to Malaysians to join the programme.

Currently, foreigners under that category were barred from the programme.

Another change was the setting up of a one-stop centre to promote, process and to take charge of all matters pertaining to the MM2H programme, she said.

"The ministry received complaints that agents abused their powers by charging participants high processing fees. Participants are exempted from paying the fees at the ministry's one-stop centre," she said.

-- BERNAMA

[HIDDEN]

This is indeed good news. It shows MoT is really reading and listening to the participants feedback. Finally they realize it's the participants who are the backbone of the program and not the agents 
2 Thumbs Up for MoT !!!!!
I've started emailing this to my M'sian friends who have been waiting for this ruling to revert. I'm sure they'll be so happy they won't have long to wait now!

[HIDDEN]

Well spotted raghu.

Interestingly there is still nothing on the MM2H Govt website

[HIDDEN]

Yes indeed, this is great news and goes a long way to addressing most (if not all) of our major concerns.  I think the government now realizes the program will only succeed if the participants concerns are given priority.  Too many of the agents have undermined the program with their own self-serving agendas...Jim

[HIDDEN]

Thanks fizzychickensoup. ..

I had lost interest when the 'must have agent' came about. After all Australia is nice and close by and flights are reasonable. The 3 months visa is more then enough.

Now I will consider applying for mm2h. One other concern I had was in divulging my entire finance and incomes, esp through a third party.

The process of making an application through a 'one stop shop' appeals to me. Also the idea that I can work for a few hours a week is very tempting.

So I must say, THANKS to MOT for listening. This is a smart move and sends the right signals out loud and clear!

cheers

[HIDDEN]

Should I assume from this that the requirement to have a monthly income of 10,000 RM will still stand and that it is not being considered for change also?  Sorry, but I’ve been sitting on the sidelines for quite a while now hoping for a reduction or abolishment of this requirement.

[HIDDEN]

Good question.
Not all the detail has been announced yet re the new changes...however I would bet my 'bottom dollar' that the RM10,000 monthly still stays. However in theory if you can work 20hrs a week, income from that kind of stuff should be part of the qualification figure!!!

[HIDDEN]

The article has been linked to gov.my site ..

http://www.gov.my/MyGov/BI/Information/News/NewsCenter.htm?NewsId=5647

   Updated:  06/02/2009
Malaysian Govt Eases Requirements For MM2H
SAPPORO (Japan), Feb 5 (Bernama) -- The Malaysian government is set to ease the requirement for participating in the Malaysia My Second Home (MM2H) programme to boost the country's property sales and the programme's participations.

[HIDDEN]

hi,

Thanks FCS for the initial post, and thanks raghu for posting the article.

The proposed relaxation, among other things, includes abolishing the requirement to disclose the source of participants' income.

So, if a RM10,000 monthly income is still required but an applicant doesn't have to disclose where it comes from, it could mean merely showing an amount in an account for 3 months ...? or just making a declaration ...?

Following that, she said, the cabinet requested the Tourism Ministry to find the mechanism for its implementation.

We need to wait and see, and track developments. Good news about spouses, and for those with special skills who would like to earn some cash. Guess things are adjusting to reality.

Once things become clearer, I suggest that any members who want to apply (or have been waiting for a favourable change) do so asap.

regards, Scott

[HIDDEN]

hi, MO,

You'll need to wait and see what is the actual outcome. I'll also be tracking about the RM10,00 monthly income as it's the main impediment to the wider success of the MM2H programme.

Let's look on the bright side. The changes are in response to the dismal 1500 visas issued yearly. Now an applicant doesn't need an agent. That's confirmed.

Applicants will be able to work part-time, and foreigners married to Malaysians will also be able to join. So far these 2 items are a newspaper report. And announced by the Tourism Minister at a Hokkaido Shimbun event.

I guess that Immigration still needs to be consulted. After all, the RM10,000 monthly income was not only to get richer applicants to apply. It was also to restrict applicants who wanted to get a MM2H visa and then work in Malaysia, or run a business (that's why applicants can't buy shophouses), and it was also to cut-down on the opportunities for hanky-panky.

Let's hope the Tourism and Immigration folk decide to position MM2H back where it was a few years ago. Primarily a long-term retirement scheme with a modest entry level, for a lovely and modest country.


regards, Scott

[HIDDEN]

Thanks Scott

Hopefully they realise that this is a big deterrent for a number of people, like myself, who want to join the scheme.  Will just sit tight and keep fingers (and toes) crossed.

On another note, if they want to boost the country’s property sales, they should also be considering allowing people to withdraw money from their fixed deposit to buy property much sooner than the current 1 year requirement. I’m sure its off-putting for some who have their eye on a property around the time of joining the scheme and yet can’t do anything about purchasing it until 1 year.

[HIDDEN]

Thanks Scott.

The $10k per month is a worry esp since the Aus$ has dropped about 30% value from the good days at RM$3.25 about Augusts last year. During the time my term deposits have dropped from 8.4% pa to 4.8%. Hence my earning has dropped and so did foreign exchange RMrates. My projected income had dropped from RM$220k appox to below RM $110k pa- about 50% loss - within 8 months! If currency drops any further to the predicted US 50cents for Aussie dollar, my income may be about RM$ 80k. That will be a huge drop in income.

One can still survive comfortably if one owns one's house or apartment outright with that sort of income but will not qualify under RM $10k pm rule. 

[HIDDEN]

hi,

The RM10,000 per month is a crazy figure. It's about 4 times the national average household income.
Many folk who would like to apply, and who can afford to live very well in Malaysia, are asset-rich but can't make the RM10,000 for a variety of reasons. The recent stock market collapse being one of them. Also, with FD rates being miserly, who is getting that amount of cash. Maybe when inflation hits the roof in a few years, but not now.

Let's hope that the review of "source of income" leads to a more pragmatic financial requirement.

regards, Scott