Malaysia introduces premium visa programme to attract wealthy foreigners

PVIP visa benefits

Malaysia has introduced a Premium Visa Programme (PVIP) to attract wealthy foreigners to invest in and reside in the country for 20 years, Home Minister Datuk Seri Hamzah Zainudin announced. The "Residency Through Investment" scheme — the first of its kind from the government — opens for applications from 1 October 2022.

Hamzah said the programme is open to business figures from any country except Israel and those without diplomatic ties to Malaysia. Participants get visa approval for up to 20 years, permission to study, the right to buy residential, commercial or industrial real estate, and the ability to make active investments in permitted sectors.

"Programme participants are also allowed to work and carry out legal business activities in accordance with the laws of the country," — Home Minister Datuk Seri Hamzah Zainudin, at a press conference also attended by Immigration director-general Datuk Seri Khairul Dzaimee Daud

Eligibility conditions

To safeguard national security and sovereignty, Hamzah said his ministry has capped total participants — principals and dependents combined — at 1% of Malaysian citizens.

"We have to set a ceiling so that it does not exceed 1% of the total number of Malaysians. If there are 30 million citizens now, then it means that there should only be 1% (300,000) and the ceiling number also includes (participants) of Malaysia My Second Home (MM2H) programme," — Home Minister Datuk Seri Hamzah Zainudin

The programme is open to applicants of any age, provided they can show offshore income of at least RM40,000 a month or RM480,000 a year, and hold a fixed deposit of at least RM1 million — with no withdrawals in the first year, then up to 50% withdrawable afterward for property purchase or health/education expenses.

Programme targets and safeguards

The ministry is targeting at least 1,000 participants in the programme's first year, expected to generate around RM200 million in revenue plus RM1 billion in fixed deposits. Hamzah said the ministry expects the programme to draw further foreign direct investment, strengthen the economy, create local jobs, and boost demand for — and the value of — the ringgit, with the Immigration Department and police monitoring compliance with the programme's rules.

Source: The Edge Markets