Why ‘Malaysia My Second Home’ Scheme Attracts Bangladeshis
By Wafiur Rahman
Bangladesh currently ranks third on the list of countries keen on the ‘Malaysia My Second Home’ (MM2H) programme, with about 2,923 Bangladeshis already on board. China and Japan takes the first two slots respectively while Pakistan and India followed as fourth and fifth. By making a minimum investment of $100,000, they are given a renewable 10-year multiple-entry social visit pass. There are currently over 12.000 people residing in Malaysia under the MM2H program. The programme primarily attracts people who wish to retire in Malaysia or spend extended periods there for business, education or long-term plans.
MM2H Know-How
According to the programme criteria, applicants up to 50-year old are required to open a fixed deposit account in Malaysian currency of RM 300,000 with any local branch of an international bank. After a period of one year, the participant can withdraw up to RM 150,000 for approved expenses relating to house purchase, education for children (in Malaysia) and medical purposes. However, a minimum balance of RM 150,000 must be maintained from the second year onwards.
Though the programme was launched in 1996, Bangladeshi citizens began to take part in it since 2003. Last year, 285 individuals took up the offer, according to Norlin Othman, Malaysian High Commissioner in Dhaka. Siddiqur Rahman, Marketing Manager of Unix Global Immigration Services called this retirement programme lucrative. “This year we have successfully processed applications of 34 candidates, most of them below the age of 50, who aspire to set up businesses and reside in Malaysia. This is lucrative for them, as they can invest as much as they want over there, and for us as this opens up a new stream of commission-based revenue for us.”
How to Apply
Application
When applying for a Malaysia My Second Home (MM2H) visa the following conditions must be met:
• Applicants below 50 years of age are required to show proof of liquid assets worth a minimum of RM 500,000 and offshore income of RM 10,000 per month
• Applicants aged 50 and above must show proof of RM 350,000 in liquid assets and off shore income of RM 10,000 per month
• New applicants who have purchased properties worth at least RM 1 million may qualify for a lower fixed deposit amount
Approval
For successful applicants who have received a ‘conditional approval letter’ from Immigration Department of Malaysia the following additional conditions must be met:
Below 50 years of age
• Open a fixed deposit account of RM 300,000
• After a period of one year, the participant can withdraw up to RM 150,000 for approved expenses relating to the purchase of a home, education for children in Malaysia and health care
• Must maintain a minimum balance of RM 150,000 from the second year onwards and throughout the stay in Malaysia under the My Second Home Programme
• For approved applicants who have purchased and own property worth RM 1 million and above in Malaysia are subject to a basic fixed deposit requirement of RM 150,000 on condition that the property has been fully paid and all legal ownership documents have been issued
Aged 50 years and above
• Open a fixed deposit account of RM 150,000; or
• Show proof of government approved pension funds of RM 10,000 per month
After one year, MM2H visa holders who fulfill the fixed deposit requirement can withdraw up to RM 50,000 for approved expenses relating to purchasing a home, educating children in Malaysia, and health care.
MM2H visa holders must maintain a minimum balance of RM 100,000 from the second year onwards and throughout his/her stay in Malaysia under this programme
Approved participants who have purchased and owned property which were bought at RM 1 million and above in Malaysia are eligible for a fixed deposit requirement of RM 100,000, on condition that the property has been fully paid and all legal ownership documents have been issued.
Other Requirements
All applicants and their dependents are required to submit a medical report from any private hospital or registered clinic in Malaysia.
Health Insurance
MM2H visa holders and their dependents must have valid medical insurance coverage that can be used in Malaysia (exemptions may apply for people who face difficulties obtaining health insurance due to their age or medical condition).
Benefits of the MM2H Program
• You are entitled to purchase one car, tax-free or you are allowed to import your own car, tax-free.
• Each participant is allowed to purchase up to two units of residential houses at a minimum price above RM 500,000 each, depending on the location of the property. A visa is not required to purchase property in Malaysia.
• No taxes are levied on the income brought into Malaysia.
• You are allowed to stay in Malaysia (without leaving the country) until the visa expires and you don’t need to leave the country during renewal.
Other Countries Bangladeshis are Opting for as Second Homes
According to diplomatic sources, the number of Bangladeshi investors-cum- immigrants is increasing in North America (USA & Canada) and Southeast Asia (Thailand and Malaysia). By investing huge sums of money, they have the scope of becoming immigrants of those countries. With the help of relatives and representatives, they can buy houses and shops to run business and settle abroad.
Affluent people choose foreign countries like Malaysia, Singapore, UAE, Thailand, Canada, Australia, UK and USA as their secure shelter and destination. Middle East is also pulling in a huge crowd , thanks to relaxed policies by Arab governments which allow Bangladeshi nationals work permits. This means that the scope for immigration is finally widening for Bangladeshis.
Similarly, countries such as Canada and Australia are becoming popular choices as second homes and for immigration nowadays because the demand for skilled professionals is higher than ever. The lure of a larger paycheck, social security and a better future is something that most Bangladeshis dream about these days. Gone are the days when established individuals had to immigrate with their families in their middle age. Nowadays, graduates can apply for a job in these countries and then stay back a certain period of time so that they can apply for Permanent Residency (PR). That makes establishing a second home ever more easier.
Countries where Bangladeshis Invest
Diplomatic sources also said that affluent Bangladeshis build homes mostly in Malaysia, Singapore, UAE and Thailand mostly. Many of them also have citizenships in Canada and Australia, where allegations of money laundering are starting to rise given the strict Foreign Exchange Regulation Act 1947( which prohibits any type of foreign investments by Bangladeshis). Some also deposit their money into banks in Hong Kong, Switzerland and the Caribbean Islands. On the other hand, the solvent, expatriate Bangladeshis also keeptheir money abroad as they are not inspired by facilities to buy land, houses or apartments at home.
However, MM2H allows them to legally invest in Malaysia, where they receive substantial incentives for such investments. Malaysia has one of the highest standards of living in the region complete with modern infrastructure and all necessary facilities in place. Expatriates and their families will enjoy a safe and comfortable living environment with 21st century amenities, good healthcare, medical facilities, excellent educational institutions, and world-class recreational facilities at costs much lower than in their own countries.
Perks of MM2H
• 3rd best retirement programme after Panama and Ecuador, according to Global Retirement Index 2014
• High living standards at low cost of living
• Almost everyone in Malaysia speaks English – no language barrier
• Wonderful climate throughout the year
• Participants can purchase (freehold) property
• Relatively easy way to get a 10-year multiple-entry social visit pass is unique to Malaysia’s MM2H program and the numerous incentives that apply to MM2H participants
• Being able to bring along spouse and children as dependants.
