Dear Malaysia, Did You Really Just Kick Us Out?

Last Updated on August 22, 2021 by Kirsten Raccuia

In my last blog, I wrote about how Mark and I were planning to leave Malaysia temporarily. Go to the US and Mexico and see how we feel, come back to Malaysia with new eyes. Feeling better, refreshed and regrouped. We were going to be gone for a while but come back and see how things are.

Well, apparently, Malaysia has other things in store for us. I usually love a surprise! But not this one.

Following a nearly 2-year suspension of the MM2H 10-year visa program, we just got an insight into the new proposed requirements. And honestly, they suck. Big time. Now Malaysia is messing with people’s futures. And it’s not ok.

But I digress. Let me explain a few things…

Our current MM2H program—our grandfather has left the building

In 2017, when we applied for MM2H, the main requirements were that we were earning RM10,000 (US$2400) monthly, and we had to put a fixed deposit of RM150k (US$35k) in a Malaysian bank.

We were supposedly grandfathered into those original rules. Meaning those requirements were never supposed to change. So, every 10 years, when we renewed, we’d have the same rules we agreed to initially, in perpetuity.

However, all that changed this week when the MM2H program announced drastic alterations.

Now, I have to admit, the program has not been officially, formally changed. But it was announced in the media and in a press conference for all the world to see. So as far as I’m concerned, the writing is on the wall.

These supposed changes are not just for new applicants, but for current MM2H holders, like us.  Malaysia, how could you? I trusted you.

No, I don’t think you owe us anything other than what you promised us in our contract. In most places, a contract can be relied upon as a bond. But clearly, here, it’s just toilet paper.

The Most Significant Proposed Changes Include:

1. Minimum monthly offshore income quadrupled — from RM10,000 (US$2400) to RM40,000 (US$9500).

Let’s be real, if you were pulling in US$10k monthly, you probably wouldn’t be looking to move elsewhere to save money or lower your cost of living. You can live pretty damn well off that in any country.

2. A 567% increase to the fixed deposit.

Initially, for us, it was RM150k (US$35k), now it’s RM1 million (US$236k). Who’s putting a quarter of a million USD in a Malaysian bank just to hope it doesn’t devalue?  No one, or very few, that’s who.

By the way, points 1 and 2 are both necessary. It’s not one or the other.

3. It went from a 10-year renewable visa to a 5-year term.

So, let me get this straight, you want more money, but you’re giving us less time? And the contract that we have to sign is a good as fake news. Doesn’t sound like a win-win.

4. Processing fees

Now there will be a RM5000 (US$1180) fee for the principal and RM2500 (US$590) for the dependent. Until now, there was no processing fee. Most of us used an MM2H agent to which we paid fees. This either forces us to pay two sets of fees or forgo the use of an agent. This isn’t a deal-breaker, but where is this coming from?

Wouldn’t this take jobs away from the agents who are already struggling since the program has been on hold for so long? And for what it’s worth, having an agent handle this for us was the best thing we did.

5. Increase in renewal fees

Renewals went from RM90 (US$21) to RM500 (US$118) per person per year. So, if your passport expires 3 years into the 10-year term, you need a new MM2H visa put in your new passport. You’ll have to pay RM630 (US$149) for the remaining seven years. But now that fee would be RM3500 (US$826). By all means, also not a deal-breaker, but it feels like a money grab.

6. The Deadline

Depending on where you read the terms, it’s unclear whether we have until October 2022 to prove up all this money before being forced to leave. Or we have until the end of our current 10-year term, plus one extra year. As if that one year will give us the much-needed time to come up with the new requirements. After breaking our contracts, it’s the least you could do.

Malaysia, you’re a mensch.

What these changes mean to us

I recognize that us MM2H’ers are unimportant to you, Malaysia. In the grand scheme of things, we don’t bring in a ton of money. As my friend Kerry put it, “We are nothing but a pimple on an elephant’s ass.”

But I also know you are hurting. The people of Malaysia are hurting.

So, what are you doing? You’re pushing away good people who help boost the economy. As a result, you went from being one of the top retirement destinations in the world to being on the bottom of that list overnight.

To all the people who have been here for years, you are saying, Yeah, we know you’ve been here for a while. And we welcomed your kind way back when. But now we want an upper echelon of people here. We want higher quality, and you’re not it. So don’t let the door hit you in the ass on the way out.

Malaysia, you vetted us in 2017 and deemed us worthy to come in under your terms. Fair enough. You absolutely should choose who comes into your country.

And we are model citizens. We come and rent high-end condos, buy local cars and scooters, shop locally, eat locally. We support the families and businesses around us by spending our money there. And happily. Additionally, many expats are very generous and give freely and openly to charities.

We are precisely who you want to live in your country. We’ve bought Malaysian health insurance, we are long-term renters, we pay into the country every day. But that’s not good enough. We are not the quality of expats you are seeking.

I’m not mad you are making new rules for future participants. That’s your prerogative.

What I’m angry about is that you are going back on our contracts. You lied to us. And contracts mean nothing. I’m angry that you are going back on your word.

What about the expats who have made a life here, under your terms—the ones we’ve abided by?

You are changing those terms and making them unobtainable for the vast majority of us. So, unless we can come up with loads more cash, we are not welcome.

If a majority of the expats leave, what happens to the real estate industry? The landlords? The places that are already struggling to keep their doors open since the pandemic? There surely will be a trickle-down effect.

I get you want to boost the economy, but you’re being short-sighted by kicking out the people who are currently here spending and adding value to the community.

People are reeling. Many expats living here on a fixed income can’t afford to go back to their home country. Now what? Scramble to find a new country to move to at 75 years old? But I guess that’s not your problem.

The Final Say

We went from being very welcome here to basically being kicked out of the country.

Yes, they haven’t “officially” made the ruling, but they went on TV and held a press conference, so I’m inclined to believe them. Even if they walk back the new rules for current holders, who’s to say they won’t revert again in the future. They pulled the rug out from under us, and the trust is gone.

As far as I’m concerned, Malaysia, you can’t take it back. We can’t un-hear your plans.

Before, I was saying goodbye, but now, you are saying good riddance to us. Before, my heart was broken, now I’m pissed off.