Leong: The Premium Visa Program is a boon to the real estate industry

The Premium Visa Programme (PVIP) will draw wealthy overseas investors to Malaysia and benefit the local property sector, according to Mah Sing Group Bhd and Juwai IQI.

PVIP sits alongside the existing Malaysia My Second Home programme (MM2H), but unlike MM2H offers a 20-year stay and lets members study, buy property, invest, work, and run businesses.

MM2H participant nationalities

Pre-Covid MM2H participation broke down roughly as: Chinese citizens around 31%, Japanese about 11%, Bangladeshis 10%, and UK citizens 6%. Asian nationalities (including Japanese), Europeans, North Americans and Gulf nationals are expected to lead PVIP participation too.

PVIP eligibility requirements

Applicants must show a minimum RM1 million bank balance (only 50% withdrawable after a year, for property purchase or medical/education costs), monthly income of RM40,000, and pay an upfront participation fee of RM200,000 per applicant plus RM100,000 per dependent. In its first year, the government is targeting 1,000 participants, projected to contribute RM200 million to the economy and RM1 billion in fixed deposits.

Industry reaction

Tan Sri Leong Hoy Kum, founder and group managing director of Mah Sing, said PVIP would support the company's property developments nationwide, attract further foreign direct investment, create local jobs, and strengthen the ringgit. He added that Mah Sing expects the upcoming Budget 2023 to keep prioritising Malaysian households while preparing for a tougher global economic climate, and said the company backs government efforts to make homeownership more accessible, particularly for first-time buyers, expressing hope for further incentives in the 7 October budget.

Juwai IQI co-founder and CEO Kashif Ansari said PVIP opens the door to wealthy migrants on clear, appealing terms that resolve ambiguities left over from MM2H's recent reforms, open to foreigners with enough overseas income and assets to be net contributors to Malaysia's economy and society — describing it as the latest step in Malaysia's shift from quantity to quality in immigration policy.

"We believe the new visa programme will be a success and succeed in attracting close to its target of 1,000 participants in the first year. The conditions are not demanding, and the benefits of living in Malaysia under a long-term visa are very attractive. Foreigners want to be able to live and work here, send their children to local international schools, and not have to worry about renewing their visas every six or 12 months," — Kashif Ansari, Juwai IQI co-founder and CEO

Source: New Straits Times