r/financialindependence • u/almost_retired • Aug 13 '21

Malaysia: They’re kicking us out: expats decry MM2H changes

So I previously posted about Malaysia dramatically upping the application requirements for the MM2H retirement program. The requirements are quite steep and not aligned with the realities of a middle income country like Malaysia.

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  • Demonstrable monthly offshore income of $RM40,000 (~US$9,500) vs 25% of that previously.
  • Bank deposit in Malaysia of $RM1 Million (~US$235K) vs 25% of that previously.
  • Must spend at least 90 days a year in Malaysia vs 0 days minimum previously.

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What was not clear at the time was that these new requirements were retroactively extended to all existing MM2H visa holders.

They’re kicking us out: expats decry MM2H changes

So basically existing expats who have been living in Malaysia under the MM2H visa for years or decades will be required to meet the new criteria at the time of VISA renewal. This is quite shocking considering that some of those people already bought real estate, cars and are fully settled in and now they will have to meet extremely steep requirements or pack up and leave.

It is estimated that only 5% of the 57 thousands MM2H expats living in Malaysia can meet the new requirements.

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u/Slammedtgs 29d ago

But isn’t the entire problem and post regarding the folks who live there now and won’t be able to afford to stay due to the change in requirements.

As I said before, others with more money will replace them. Malaysia still wins.

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u/Sweet_Barracuda_8622 29d ago edited 29d ago

So let's say there were 100 people that got the visa, of whom 5 now meet the new criteria (picked because one article I read estimated 5% met new criteria).

Your argument is that there are a bunch of rich people who previously hadn't applied but all of the sudden will feel compelled to apply, because...?

Your argument seems to rest on this idea that there were a bunch of wealthy people that wanted to move to Malaysia but were never apply to because middle-class people used up all the visas. Is there any actual data to support this notion?

My guess is they'll end up with, at max, the 5 they already had. But potentially even less because this may spook people who are worried that future governments might do something even more radical (like seize property or assets), and being rich, they can move just about anywhere.