Datuk Isham Ishak: No Spike in MM2H from Hong Kong

Introduction: Expectations Versus Reality

When political instability grips a region, nearby countries often brace for an influx of migrants, investors, and retirees seeking safer pastures. In mid-2019, as Hong Kong experienced its largest wave of protests in decades, many observers speculated that Malaysia — long known for its Malaysia My Second Home (MM2H) programme — would see a surge in applications from anxious Hong Kong residents.

Yet, despite months of civil unrest and widespread calls for relocation, the reality told a different story. According to Datuk Seri Isham Ishak, Secretary-General of the Ministry of Tourism, Arts and Culture (MOTAC), Malaysia has not witnessed any notable spike in MM2H applications from Hong Kong.

The revelation underscores an important truth about long-term migration: while global politics can influence sentiment, actual relocation requires far more than impulse. It demands careful planning, resources, and confidence in the chosen destination.

Understanding the MM2H Programme

The Malaysia My Second Home (MM2H) initiative was introduced in 2002 as part of Malaysia’s broader economic diversification strategy. The goal was to attract long-term foreign residents — retirees, professionals, and investors — to contribute to the country’s economy through property purchases, deposits, and local spending.

The programme evolved from the Silver Hair Programme, a smaller-scale initiative launched in the late 1990s aimed primarily at retirees from Japan and the United Kingdom. Its success led the Malaysian government to expand eligibility to citizens from around the world.

Applicants under MM2H receive a renewable 10-year multiple-entry visa, allowing them to reside in Malaysia with their spouse, children, and even domestic helpers. The programme does not grant permanent residency, but it offers stability and flexibility for long-term stays.

Key requirements include:

• Demonstrating sufficient liquid assets and offshore income.
• Maintaining a fixed deposit in a Malaysian bank.
• Meeting medical insurance and security screening conditions.

Over the years, MM2H has become one of Southeast Asia’s most respected residency-by-investment programmes, appealing to those seeking affordability, tropical living, and cultural diversity.

The Hong Kong Protests and Global Migration Fears

In March 2019, Hong Kong erupted in protests over a proposed extradition bill that would have allowed criminal suspects to be sent to mainland China for trial. What began as opposition to a single piece of legislation soon evolved into a larger movement demanding democratic reforms, police accountability, and autonomy.

The unrest triggered widespread uncertainty about Hong Kong’s political future. Reports surfaced of wealthy residents transferring assets abroad, purchasing overseas properties, and applying for residency programmes across the Asia-Pacific region.

Against this backdrop, Malaysia — with its English-speaking population, familiar Chinese diaspora, and relatively low cost of living — seemed a natural alternative. Many expected a wave of Hong Kong citizens to apply for MM2H as a form of “escape hatch” from instability.

However, Isham Ishak quickly dispelled this notion. Speaking to Bernama, he explained that relocation through MM2H is a deliberate, long-term decision, not a spontaneous reaction to political events.

Why There Was No Spike in Applications

1. Migration Requires Careful Planning

“Applying for the MM2H programme is not something one does overnight,” Isham emphasized. “It involves financial, personal, and logistical planning — decisions about family, property, health, and lifestyle.”

Relocation under MM2H entails significant preparation: liquidating assets, fulfilling documentation requirements, and understanding Malaysia’s financial and legal systems. For many potential applicants in Hong Kong, the protests — while alarming — did not necessarily translate into immediate relocation decisions.

2. Stability in Hong Kong’s Financial Ecosystem

Despite the unrest, Hong Kong’s financial system remained largely functional. Many middle-class residents and retirees preferred to “wait and see” rather than uproot their lives. The city’s global connectivity, robust economy, and legal framework continued to provide a sense of resilience.

3. Perceived Bureaucracy and Costs

The MM2H application process, while transparent, is not without its hurdles. Applicants must deposit between RM150,000 to RM300,000 (depending on age) in a Malaysian fixed deposit account and show proof of offshore income. These financial barriers, though reasonable by global standards, deter spontaneous applicants.

4. Malaysia’s Selective Appeal

Isham noted that individuals interested in MM2H often choose Malaysia for specific lifestyle reasons — its multicultural society, healthcare quality, or tropical climate — not simply as a reaction to crisis. “You need to understand why you choose Malaysia,” he said, stressing that motivation and compatibility are key factors in successful relocation.

Application Trends and Data

As of 2019, Malaysia had received about 3,500 MM2H applications from across the globe. While there was a modest rise in interest from Hong Kong — approximately 20 percent year-on-year growth since 2017 — the ministry did not record any significant surge linked to the protests.

From 2002 to 2018, Malaysia approved 43,943 applications from 131 countries. Hong Kong accounted for 1,087 approvals, ranking ninth among the top 10 participating nations.

The leading contributors were:

1. China – 13,892 approvals
2. Japan – 4,882
3. Bangladesh – 4,187
4. United Kingdom – 2,729
5. South Korea – 2,568
   Other notable sources included Iran, India, Taiwan, Singapore, and the United States.

These numbers reveal the programme’s broad appeal across continents. Asian countries dominate participation, reflecting Malaysia’s position as a regional retirement and investment hub.

Economic Impact of MM2H

Between 2007 and 2018, the MM2H programme contributed approximately RM18.345 billion to Malaysia’s economy. This figure includes spending on real estate, fixed deposits, healthcare, education, vehicles, and local services.

The economic benefits extend beyond immediate cash inflows. Many participants purchase properties, employ domestic staff, and invest in small businesses. Their spending boosts local tourism, retail, and professional sectors, especially in urban centers like Kuala Lumpur and Penang.

Demographic Profile of Applicants

• 76% of participants applied as families, while 24% applied individually.
• 51% were aged 50 and above, typically retirees seeking a comfortable lifestyle.
• The remaining 49% were younger professionals, entrepreneurs, or investors exploring business opportunities in Malaysia.

This diversity contributes to Malaysia’s service economy and international community, with MM2H residents often acting as informal ambassadors promoting Malaysia abroad.

Why Malaysia Remains Attractive

Despite the absence of a sudden spike from Hong Kong, Isham underscored that Malaysia’s long-term appeal remains strong. The country offers a blend of affordability, safety, and lifestyle quality unmatched by many regional peers.

1. Cost of Living and Lifestyle

Compared to global cities like Hong Kong, Singapore, or Tokyo, Malaysia’s cost of living is significantly lower. Foreign residents can enjoy spacious housing, affordable healthcare, and diverse cuisines at a fraction of the cost.

2. Education and Healthcare

Malaysia’s international schools and healthcare system consistently rank among the best in the region. Cities like Kuala Lumpur and Penang host accredited international institutions and hospitals that attract foreign retirees and families alike.

3. Cultural Diversity and English Proficiency

Malaysia’s multicultural society — with strong Malay, Chinese, Indian, and indigenous influences — creates an environment where expatriates feel welcome. English is widely spoken, reducing language barriers and easing integration.

4. Climate and Geography

The tropical climate appeals to those seeking warm weather year-round. With beaches, mountains, and modern infrastructure, Malaysia offers both natural beauty and urban comfort.

Top Destinations for MM2H Participants

According to Isham, Kuala Lumpur remains the top destination for MM2H participants, offering cosmopolitan amenities and international connectivity. Other popular choices include:

• Selangor – For its proximity to the capital and access to schools and healthcare.
• Penang – A long-time favorite among expatriates, known for its heritage charm and strong medical tourism sector.
• Johor – Attracts Singapore-linked investors and retirees due to its location and affordability.
• Langkawi – Offers a serene, resort-style environment ideal for retirees.
• Malacca – Appeals to those seeking cultural richness and historical surroundings.

Together, these regions account for the vast majority of MM2H residency clusters, forming vibrant international communities across Malaysia.

Challenges Facing MM2H

While MM2H has generated substantial economic benefits, Isham acknowledged that the programme faces ongoing administrative and policy challenges.

1. Balancing Economic Gain and Security

The Ministry must ensure that applicants meet financial and security requirements while keeping the process transparent and investor-friendly. Periodic reviews are conducted to prevent misuse of the programme.

2. Inter-Agency Coordination

MM2H involves coordination between MOTAC, the Home Ministry, Immigration Department, and financial institutions. Streamlining approvals without compromising due diligence remains a constant balancing act.

3. Global Competition

Neighbouring countries like Thailand, Indonesia, and the Philippines have introduced their own long-term residency programmes, offering tax incentives and flexible terms. To stay competitive, Malaysia must continuously refine MM2H’s conditions and services.

4. Public Perception and Housing Concerns

Some Malaysians worry that foreign ownership could inflate property prices. Isham clarified that the government monitors the impact closely, ensuring that MM2H properties do not displace local housing demand.

Broader Implications for Malaysia’s Tourism Strategy

MM2H is not merely a visa scheme; it forms part of Malaysia’s broader tourism and economic diversification strategy. By attracting long-term residents, the programme stimulates stable, recurring spending — a valuable complement to short-term tourism revenue.

It also supports Malaysia’s vision under the National Tourism Policy 2020–2030, which emphasizes high-value tourism, sustainability, and international branding. Long-term residents contribute to local economies beyond hospitality — through education, medical care, and lifestyle consumption.

Hong Kong’s Continuing Interest in Malaysia

Even without a sudden surge, Hong Kong’s interest in Malaysia remains steady. Annual growth in applications, though modest, reflects consistent confidence in Malaysia’s governance and quality of life.

Some Hong Kong retirees have publicly cited Malaysia’s visa flexibility and property ownership rights as major draws. Unlike in some countries, MM2H participants can own freehold properties (within set guidelines), giving them long-term security and investment potential.

The 20% yearly growth rate in Hong Kong applications since 2017 demonstrates a gradual, sustainable trend rather than a panic-driven migration.

Looking Ahead: Policy Sustainability and Future Adjustments

Isham Ishak highlighted the government’s ongoing efforts to review and enhance MM2H to keep it globally competitive while maintaining integrity. Among the measures under consideration are:

• Simplifying application procedures through digital systems.
• Improving transparency between MOTAC and the Home Ministry regarding approval timelines.
• Increasing promotion in emerging markets, including the Middle East and Europe.
• Strengthening after-approval support for participants, including housing guidance, healthcare access, and community integration.

These steps aim to position Malaysia as a preferred choice for retirees, investors, and professionals seeking stability in Southeast Asia.

Conclusion: Measured Growth Over Sudden Influx

While some expected Malaysia to become a major refuge amid Hong Kong’s turmoil, Datuk Seri Isham Ishak’s clarification highlights a more nuanced reality. Migration decisions, especially under structured programmes like MM2H, are guided by deliberation, not desperation.

Malaysia continues to attract participants not because of crises elsewhere, but because of its long-standing reputation for stability, affordability, and hospitality.

From its humble beginnings as the Silver Hair Programme to today’s multi-billion-ringgit initiative, MM2H stands as a testament to Malaysia’s soft-power diplomacy — offering a welcoming home to global citizens while strengthening its economy.

Written by

Nancy Drew

Updated

15 hours ago