Shareda welcomes move on Malaysia My Second Home
Published on: Tuesday, July 23, 2024
.jpg "Shareda welcomes move on Malaysia My Second Home")
Chua expressed support for the move, emphasising the importance of the Federal Government’s recognition of Sabah’s autonomy in managing the MM2H programme.
Kota Kinabalu: The Sabah Housing and Real Estate Developers Association (Shareda) welcomes the recent announcement that Sabah will have full control over its Malaysia My Second Home (MM2H) programme.
This significant development follows a productive meeting between Sabah Tourism, Culture and Environment Minister Datuk Christina Liew and federal Tourism, Arts and Culture (Motac) Minister Datuk Seri Tiong King Sing.
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Shareda President Datuk Chua Soon Ping expressed support for the move, emphasising the importance of the Federal Government’s recognition of Sabah’s autonomy in managing the MM2H programme.
“Finally, the Federal Government, through its tourism arm, has agreed to support the State Government’s initiative for the Sabah MM2H programme.
“We are optimistic that this will entail full authority without being subject to federal guidelines. For instance, the agency fees for the silver programme are set at RM40,000 per application by the Federal Government, whereas our State Government’s proposal caps the fee at RM15,000,” said Chua.
Chua also highlighted the distinction between federal and state roles in the programme.
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“The Federal Government operates through Motac-licensed agents, while we will have state representatives assuming similar roles.”
An essential requirement under the new Sabah MM2H programme is the purchase of a new high-rise property exceeding RM600,000, whether completed or under construction, residential or commercial.
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“This measure aims to protect local buyers from unnecessary competition with foreigners, which could lead to speculative pressures on landed properties, still highly sought after by local residents,” said Chua.
The introduction of the Sabah MM2H programme is expected to yield substantial economic benefits.
“The influx of overseas investment and funds will not only benefit the real estate sector but also stimulate economic growth and enhance the tourism industry in Sabah,” he said.
“If a family spends RM1.5 million annually on purchasing a home, car, education and other needs, and we have 1,000 successful investors, this would generate RM1.5 billion in market activity.
“With an economic multiplier effect of three times, this translates to an additional RM4.5 billion into the market. This multiplier effect is expected to continue in subsequent years,” he said elaborating on the potential economic impact.
In terms of property trading flexibility, the programme allows purchased properties to be traded off after five years, provided the investors buy another new second home.
“This unique flexibility enables investors to upgrade or move into bigger units if they wish, compared to the federal programme where disposal is only allowed after 10 years,” he said.
Shareda is confident that the full control of the Sabah MM2H programme will bring about significant positive changes and looks forward to working closely with the State Government to ensure its success.
The Sabah MM2H programme and the national Malaysia My Second Home (MM2H) programme differ primarily in their application processes and requirements. Sabah MM2H, managed by the State Government, offers more flexible and attractive terms compared to the national MM2H programme.
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