KUALA LUMPUR – The RM200,000 bank guarantee required of Malaysia MySecond Home (MM2H) agents is necessary to protect the programme’s reputation following previous complaints of overcharging of clients and reselling of agency licences, Datuk Seri Tiong King Sing said.
The tourism, arts and culture minister said the bank guarantee amount, stipulated in new MM2H regulations, are aimed at ensuring registered agencies have the financial resources needed to facilitate applications for the programme.
“We received numerous complaints from previous MM2H applications on agencies ‘disappearing’ after charging fees, unsuccessful applications despite paying high fees, re-sale of MM2H agency licences to other companies, among other complaints, which ultimately caused the programme’s reputation to deteriorate.
“Such steps are taken to prevent MM2H applicants from experiencing losses caused by irresponsible agencies,” Tiong said in a post on his Facebook page.
The RM200,000 bank guarantee will be used to reimburse MM2H applicants in cases where the agency violates regulations, he said.
“If the agency concerned has violated the rules, such as by charging excessive fees, its licence will be revoked and the agency’s bank guarantee used to reimburse applicants.”
Tiong also reiterated the new rule that fixes the amount of fees an agency can charge applicants, stressing that it is now “forbidden to overcharge”.
“All MM2H agencies can only charge a percentage of certain service charges… for example, they can only charge a fee of 20% of the total value of the service charge, to be used as a deposit, before the application is approved.”
He was responding to complaints of the RM200,000 bank guarantee requirement as stated in the rules for MM2H agents.
The rules also fix service fees chargeable by agents to applicants according to the programme’s three tiers – Platinum (RM70,000), Gold (RM55,000), Silver (RM40,000) and special economic/financial zone applicants (RM40,000).
The tiers were introduced under a revamp of MM2H application criteria to attract high-net worth foreign individuals to buy property and contribute to Malaysia’s economy.
The programme contributes to the local economy, generating RM11.89 billion through visa fees, purchase of real estate and private vehicles, fixed deposits, and household spending from 2002 when it was introduced, to 2019, according to previous reports. – June 20, 2024