While Malaysia's MM2H program faces challenges, Indonesia's Golden Visa has become a strong competitor.
By AKMAR ANNUAR & NURUL NAJMIN ABU BAKAR
Southeast Asia is becoming an attractive place for foreign investors and retirees, with two main residency programs standing out: Malaysia My Second Home (MM2H) and Indonesia's Golden Visa.
Both programs aim to attract wealthy individuals, but they differ in their details, benefits, and long-term effects.
Malaysia has traditionally led in long-term residency options, but Indonesia's Golden Visa has created more competition, making it a race for investment. So, which country will come out on top?
MM2H Program
For many years, Malaysia's MM2H program has been a popular choice for people seeking long-term residency in Southeast Asia, especially because of its flexibility.
One of MM2H's main attractions is its ability to accommodate large families. According to Anthony Liew, president of the MM2H Consultants Association, applicants can bring their spouse, children (up to 34 years old), and both sets of parents.
In comparison, Indonesia's Golden Visa only allows applicants to include their spouse, children under 21, and parents.
However, recent changes to MM2H have made some potential applicants reconsider. The new property investment requirement, which asks participants to hold property for at least 10 years, has been a barrier for some. For older applicants, like those over 50, investing in property might not make sense.
Financially, MM2H now requires a fixed deposit of at least US$150,000 (RM625,500) in a Malaysian bank, plus property worth at least RM600,000. While this brings in revenue for Malaysia, it may be a challenge for certain groups of people, especially retirees from countries where owning property is not a priority.
Despite these challenges, the new MM2H program is attracting more interest from younger, wealthy individuals in China. Eugene Lim from K-Konsult Taxation noted that there has been a surge in inquiries via platforms like TikTok, and although applications are still pending due to licensing issues, demand is expected to grow.
China is also the largest group of MM2H participants, with over 24,000 of the program's 56,000 pass holders coming from China. This has led to an increase in interest in Malaysian industrial land from Chinese investors.
Golden Visa Program
While Malaysia's MM2H faces challenges, Indonesia's Golden Visa has become a strong competitor. The Golden Visa offers a simpler financial setup, allowing applicants to choose between placing a fixed deposit of US$132,000 or buying property of the same value—without the additional property and deposit requirements that MM2H has.
Indonesia's Immigration Attaché, Idul Adheman, said the Golden Visa has already received a positive response, especially from high-income individuals. The program is designed to attract investors who can positively impact the economy.
The Golden Visa also offers more flexibility in business activities and property ownership. For those who don't want real estate, investing in bonds or other financial instruments is a viable option. This makes Indonesia's program more appealing to people who want to diversify their investments.
Lifestyle and Healthcare
In terms of lifestyle, Malaysia still leads, particularly in healthcare. The country has a well-established healthcare system with internationally recognized hospitals and a growing medical tourism sector.
Liew pointed out that Malaysia's strengths include its healthcare, public transport, and multicultural society, all of which are attractive to retirees from various countries. On the other hand, Indonesia has a lower cost of living but is still improving its healthcare infrastructure.
Golden Visa holders can stay in Indonesia for up to 10 years, with the option to apply for permanent residency after three years. They also benefit from priority immigration services.
While Indonesia's healthcare is still not as advanced as Malaysia's, it is becoming more appealing for those who prioritize affordability over top-tier medical facilities.
Tax Incentives and Economic Contributions
Tax benefits are often important for those seeking long-term residency. Malaysia's MM2H offers tax exemptions on funds transferred to Malaysian bank accounts, making it attractive to foreign investors.
Liew noted that this feature helps Malaysia stay competitive despite higher costs. In comparison, Indonesia is still refining its tax policies under the Golden Visa but may offer tax benefits in the future.
Both programs contribute significantly to their economies. MM2H participants are encouraged to invest in property, healthcare, and education. Many foreign students attend international schools in Malaysia, spending around RM100,000 per child annually. These families also contribute to the economy through property purchases and travel.
Indonesia's Golden Visa has already brought over US$259 million into the banking sector since it launched in 2024.
Application Process
The application processes for the two programs are quite different. MM2H requires a lot of paperwork, including proof of income and assets, which can be time-consuming. In contrast, the Golden Visa offers a simpler process with faster immigration services.
Golden Visa holders enjoy priority lanes and expedited services, making the process more convenient. This has made Indonesia's program appealing to many potential applicants, who describe the application as straightforward and hassle-free.
Retirement Destinations
Indonesia's Golden Visa is quickly gaining popularity due to its simpler application process and flexible financial requirements. The program is especially attractive for those who want long-term residency without complex financial obligations.
However, Malaysia's MM2H program still has several advantages, especially for those with large families and those seeking high-quality healthcare. Malaysia's diverse culture and strong medical facilities continue to make it an appealing option for retirees and wealthy individuals.
With Indonesia catching up, Malaysia may need to adjust its requirements to stay competitive. The decision between MM2H and the Golden Visa will depend on factors like family needs, financial commitments, and lifestyle preferences.
As these programs evolve, potential applicants will need to carefully consider their options. The competition between the two countries is likely to grow, and the real winners will be the investors and retirees who make the most of these opportunities.
No comments:
Post a Comment