Malaysia My Second Home Programme

Malaysia My Second Home Programme is promoted by the Government of Malaysia to allowpeople from all over the world who fulfil certain criteria, to stay in Malaysia as long as possible on a social visit pass with a multiple entry visa. The Social Visit Pass is initially for a period of ten (10) years (depending on the validity of the applicants’ passport) and is renewable.

Eligibility
It is open to all citizens of countries recognized by Malaysia regardless of race, religion, gender or age. Applicants are allowed to bring along their spouse and children (below 18 years old who is not married).

Terms & Conditions

Financial Requirements
Successful applicants required to comply with the following financial criteria upon receipt of the `conditional approval letter ' from Malaysia Immigration Department.

i) Aged Below 50 years old

* Open a fixed deposit account of RM300,000.00.

* After a period of one year, the participant can withdraw up to RM240,000.00 for approved expenses relating to house purchase, education for children in Malaysia and medical purposes.

* Must maintain a minimum balance of RM60,000.00 from second year onwards and throughout stay in Malaysia under this programme


ii) Aged 50 years and above

* Can either choose to:
- Open a fixed deposit account of RM150,000.00 ; OR
- Show proof of monthly off-shore income of RM10,000.00 such as pension scheme.

* After a period of one year, participant who fulfills the fixed deposit criteria can withdraw up to RM90,000.00 for approved expenses relating to house purchase, education for children in Malaysia and medical purposes.

* Participant must maintain a minimum balance of RM60,000.00 from the second year onwards and throughout stay in Malaysia under this programme.


Note:

1 ) Successful applicants need to open their fixed deposits in Ringgit Malaysia (RM) only.

2) Participants need to obtain prior approval from Ministry of Tourism before proceed to withdraw the fixed deposit

3) Participants under this programme may withdraw their entire fixed deposit anytime should they decide to terminate their stay in Malaysia under this programme. However, they must obtain prior approval from the Ministry of Tourism.


Medical Report
All applicants and their dependents (spouse and children) are required to submit a medical report from any private hospital / registered clinic in Malaysia.


Medical Insurance
Approved participants and dependents (spouse and children) must possess a valid medical insurance policy which is applicable in Malaysia.


Restrictions
Participants under Malaysia My Second Home Programme are not allowed to work / be employed while staying in Malaysia.

In addition, they should not participate in activities that can be considered as sensitive to the local people and a threat to the security of the country.

Malaysia My Second Home Programme

Malaysia My Second Home Programme is promoted by the Government of Malaysia to allowpeople from all over the world who fulfil certain criteria, to stay in Malaysia as long as possible on a social visit pass with a multiple entry visa. The Social Visit Pass is initially for a period of ten (10) years (depending on the validity of the applicants’ passport) and is renewable.

EligibilityIt is open to all citizens of countries recognized by Malaysia regardless of race, religion, gender or age. Applicants are allowed to bring along their spouse and children (below 18 years old who is not married).

Terms & Conditions

Financial RequirementsSuccessful applicants required to comply with the following financial criteria upon receipt of the `conditional approval letter ' from Malaysia Immigration Department.

i) Aged Below 50 years old


* Open a fixed deposit account of RM300,000.00.


* After a period of one year, the participant can withdraw up to RM240,000.00 for approved expenses relating to house purchase, education for children in Malaysia and medical purposes.


* Must maintain a minimum balance of RM60,000.00 from second year onwards and throughout stay in Malaysia under this programme


ii) Aged 50 years and above


* Can either choose to:
- Open a fixed deposit account of RM150,000.00 ; OR
- Show proof of monthly off-shore income of RM10,000.00 such as pension scheme.


* After a period of one year, participant who fulfills the fixed deposit criteria can withdraw up to RM90,000.00 for approved expenses relating to house purchase, education for children in Malaysia and medical purposes.


* Participant must maintain a minimum balance of RM60,000.00 from the second year onwards and throughout stay in Malaysia under this programme.


Note:


1 ) Successful applicants need to open their fixed deposits in Ringgit Malaysia (RM) only.


2) Participants need to obtain prior approval from Ministry of Tourism before proceed to withdraw the fixed deposit


3) Participants under this programme may withdraw their entire fixed deposit anytime should they decide to terminate their stay in Malaysia under this programme. However, they must obtain prior approval from the Ministry of Tourism.




Medical Report
All applicants and their dependents (spouse and children) are required to submit a medical report from any private hospital / registered clinic in Malaysia.


Medical Insurance
Approved participants and dependents (spouse and children) must possess a valid medical insurance policy which is applicable in Malaysia.


Restrictions




Participants under Malaysia My Second Home Programme are not allowed to work / be employed while staying in Malaysia.


In addition, they should not participate in activities that can be considered as sensitive to the local people and a threat to the security of the country.

Foreign Investor in Malaysia's Real Estate - Good News

On 20 December 2006, Prime Minister's Department have release a piece of good news for all foreign investors in Malaysia's real estate industry. With effective from 21 December 2006, all foreigners can purchase any RESIDENTIAL property above RM250,000 without any restrictions in the (1) usage - own occupancy or to let or (2) the number of units.

Now if you are an intending investor, no worries about complying with a set of rules, neither do you have to wait for 3 to 4 months for FIC approval.

The actual text (in Bahasa Malaysia), please click (1) here & (2) here.

Senior Citizen's Loan Info

Today, the key word among the older generation comprising pensioners and retirees is “independence”.

No longer do they want to rely on their offspring for day-to-day income during their golden years; instead, they prefer to source for instruments and assets that can give them recurring revenue they can manage on their own.

Traditionally, this has been derived through real estate rental and dividends from prudent equity investments. But another being enjoyed worldwide, and which could be well received if introduced to our shores, is a financial scheme known as reverse mortgages.

Proven popular in Australia and the United States and recently catching on in South Korea, this plan allows retired homeowners to extract the equity portion of their property for utilisation, without the need to make any monthly repayments until they sell their homes or pass away, unlike a typical mortgage.

In Australia, all that are required to obtain a reverse mortgage is that applicants be at least 62 years old and own property … and that’s it. They don’t have to show any proof of income or credit worthiness. Furthermore, they also don’t have to worry about their homes being repossessed or foreclosed, simply because they retain ownership and the amount owed cannot exceed 50 per cent of their property’s value.

Here’s how it works: Say an aged individual has a fully paidup RM200,000 home; he could receive up to half the amount for as long as he lives or occupies his property. The amount utilised, which can be released either in equal monthly payments for a fixed period, as a line of credit, or a combination of both, would be charged at the prevailing loan interest rate, while the portion yet to be utilised will earn savings interest.

TO READ MORE CLICK HERE

Corporates to keep an eye on !

Thinking to invest in shares? Keep watch on some stocks. (This is not advise to buy. Please consult your personal advisor or remisiers)

1) Dialog

Home boost for foreigners

Source: The Star Newspaper, Thursday October 19, 2006.

KUALA LUMPUR: From Nov 1, foreigners will be allowed to buy property like houses, condominiums and buildings costing RM250,000 and above without the approval of the Foreign Investment Committee (FIC) under the Prime Minister’s Department.

The ruling, however, is subject to the following conditions – that ownership is restricted to foreigners including permanent residents; only for own use and not rented out, leased or for investment purposes; and the property is in an area, premises or building meant for dwelling purposes only.

Minister in the Prime Minister’s Department Datuk Seri Mohd Effendi Norwawi announced the new ruling in a statement after the Cabinet meeting yesterday.

He said all further information could be obtained on the Economic Planning Unit (EPU) and Prime Minister’s Department websites and problems could be referred to the secretary of the FIC, EPU or PM’s Department.

Real Estate and Housing Developers Association (Rehda) president Ng Seing Liong welcomed the move, saying this was what they had been asking for.

“The market has been sluggish and this will definitely give it a boost,” he said

Ng said their survey showed that the market had not been too good in the past nine months compared with previous years.

He noted that interest rates have stabilised and oil prices which were sky-high had now come down, and this could help the market pick up.

The new ruling, he said, appeared to target those who wanted to make Malaysia their second home.

“It’s good to have foreigners come here to stay. This will help stimulate the economy,” he added.

As for concerns that Singaporeans would rush to snap up property in Johor, Ng pointed out that even the Johor market was currently sluggish and this might be a good boost.

Government 'very serious' about MM2H

By Allison Lee of City & Country of The Edge October 2, 2006. If anyone has any doubts about how serious the government is on promoting the Malaysia My Second Home (MM2H) programme, this is the government's reply: "We are very serious." Moreover, says Datuk Dr Victor Wee, the secretary-general of the Ministry of Tourism, the government is also learning from its mistakes, such as ensuring there is no more confusion about the programme. Wee concedes that this was the case in the past. One of the key lessons learnt is the need for interagency cooperation and open communication with those involved in MM2H. "People would go to our embassies to make enquiries but the officers themselves were not sure about the rules. In the past, the rules were changed too often and too much without first deliberating with the relevant parties and this resulted in confusion," Wee says. In May this year, City & Country reported that while property market players recognised the importance of MM2H, they questioned the rationale behind some of its rules. A new set of rules had been put in place in April. Under these rules, MM2H participants are no longer required to have a local sponsor and agents registered with the ministry will assist them to settle down in the country, among others. MM2H evolved from the Silver Hair Programme, which the government introduced in 1996 to convince foreign retirees above 50 years of age into making Malaysia their second home. The fact that tourism is the second highest foreign exchange earner for the country is reason enough for MM2H to be promoted aggressively. Foreigners who reside here will boost the economy in more ways than one, given their needs. One can also expect regular visits from family members and/or friends, which will again help stimulate the economy. Wee tells City & Country that the Cabinet — well aware of the programme's initial problems — has decided to "take the bull by the horns". A Cabinet committee on tourism, chaired by the Deputy Prime Minister, has been formed in a move that signals how much the government wants the programme to succeed. Wee chairs the MM2H steering committee, which was formed in end-2004. The government's goal: To reposition MM2H on the right path. One-stop centre Wee's office is on the 36th floor of Menara Datuk Onn in Putra World Trade Centre in Kuala Lumpur. On the 23rd floor is the MM2H one-stop centre. Set up just four months ago, it is brightly lit and manned by a team to guide those interested in the programme. However, the centre is not complete. It will not be until a vital component in the form of an Immigration branch is set up there physically, which is expected sometime next year. "We want to expedite the approval process for MM2H. Currently, the process can take up to six weeks because all applications for the MM2H visa need to be checked first. With an Immigration branch within the centre, we will be able to shorten the processing time to three to four weeks," Wee shares, adding that a request for this has been made to the Public Ser-vices Department. He says the promotion of MM2H will be stepped up once the one-stop centre is fully operational because it would be unwise to "promote something we cannot deliver quickly". The ministry has documented and included essential MM2H information on its website. At the same time, Wee and his team are working hard to publicise MM2H to the target markets of Japan, South Korea and the UK. So far, some 81 agents have been signed on. As expected, some of the agents are property developers who are naturally eager for MM2H to gain steam. The ministry organises forums and discussions for the agents and monitors their activities. Agents are required to include "MM2H" in the set-up of their companies for this purpose. Meanwhile, the number of MM2H participants has increased over the years, with the total since 2002 to August 2006 standing at 9,576 (see Table 1). Retirement homes Local developers' interest in MM2H is obvious. All the participants will need a roof over their heads as will visiting family members or friends. While some may rent homes, others will consider investing in houses here, creating demand in the local property market. Wee sees retirement villages as an exciting option for local developers, noting that such villages are abundant in Spain. "I have spoken to local developers and many are keen to build retirement villages. These are popular because they provide retirees with opportunities to mingle because many of them live on their own after the children have left the nest." However, for a retirement village to work, it will need to have medical facilities within 20 minutes' reach and easy access to major highways and transport hubs, Wee adds. Need for higher fixed deposits? One of the questions raised about MM2H conditions is the fixed deposit requirement. The new rules state that MM2H participants aged below 50 need to deposit a minimum RM300,000 while those aged 50 and above need only put in RM150,000. After a year, participants can make withdrawals but must maintain a minimum balance of RM60,000 in the account. The withdrawals can only go towards house purchase, education for children in Malaysia and medical expenses. Although the amount of deposit has been raised, some quarters feel this should be higher. Veteran developer Datuk Alan Tong, who is also the immediate past world president of International Real Estate Federation (Fiabci), has suggested that the amount be raised to US$500,000 (RM1.842 million) to ensure the programme attracts the right target group, which should ideally be "high net worth individuals". At the recent National Property Summit 2006, Glomac Bhd's managing director and Selangor chairman of the Real Estate and Housing Developers' Association (Rehda), Datuk F D Iskandar Mansor, felt the amount should be raised to RM500,000. "A higher limit will ensure that quality foreigners reside in the country, not just backpackers. In Rehda's Budget Consultation 2007 submission, we proposed the creation of a new tier. Those in the new tier must bring in RM1 million each. And 50% of this must be invested in fixed assets-, like property," Iskandar said in his paper entitled "Securing More Foreign Buyers for Malaysian Properties: MM2H, Making It More Attractive". Rehda Kuala Lumpur's chairman Teh Boon Ghee echoed Iskandar's views at the forum on Malaysia: My Second Home Programme held on Sept 22. "Our fixed deposit amount is relatively low in comparison to that of countries like Singapore, Thailand and Australia. Relevant issues such as work permits for MM2H participants also need to be addressed," stressed Teh, who is senior general manager of IGB Corp Bhd. When asked to comment on the calls for a higher fixed deposit, Wee says the current amount is the "right amount required to ensure that MM2H works". "The fixed deposit required is just the minimum requirement. We are targeting retirees and this amount rests well with them. Besides, most of them have bought houses here which cost above RM800,000," he adds. Japanese target Japanese baby-boomers are a key market for MM2H. "We already have a lot of Japanese residing in the country under the programme. There is even a Japan Club formed by expatriates living here. The Japanese are at the top of our list because they are very sensitive to the needs and feelings of others and also very law abiding," says Wee. Other countries targeted by the ministry are the UK, South Korea, Bangladesh and China. There is no denying that the ministry is determined to take MM2H places.

Old Klang Road gets new image

By Finton Tan of City & Country, THE EDGE SUNDAY May 14, 2006.

Excerpt of the article as follows . . .

Old Klang Road or Jalan Kelang Lama — the names evoke images of a long, winding road flanked by furniture shops, used car outlets, garden supply shops, Chinese restaurants, terraced factories, small and medium-sized businesses, housing estates and squatter colonies. The 12km road, which stretches from near Mid Valley City, starts inconspicuously off the Federal Highway and then opens up to a six-lane highway, ending in the vicinity of the Guinness Anchor Bhd building in Petaling Jaya Selatan. It also links to the 19.6-km New Pantai Expressway (NPE), Jalan Gasing and Jalan Puchong.

Like Jalan Cheras, the road is the main artery for housing estates on the left side if one is coming from the city. These comprise mainly single and double-storey terraced units and high rises, interspersed with semidees and bungalows.

Among the housing estates are Taman Desa, Taman Danau Desa, Taman Lin Hoe, Taman Goodwood, Taman Kuchai Jaya, Kuchai Brem Park, Taman United, Taman Happy Garden, Taman Bukit Indah, Taman Kanagapuram, Overseas Union Garden (OUG), Taman Yarl, Taman Nam Fong and Taman Seri Sentosa.

On the opposite side, it roughly parallels the Klang River and railway tracks in some sections. And sandwiched between the road and the Federal Highway beyond are a hodgepodge of shoplots, terraced factories, office buildings, squatter colonies and high-rise residential developments.

Notable commercial buildings along the road are Pearl Point Hotel and shopping mall, Citrus Park and Plaza OUG, while the area’s largest industrial zone is OUG Industrial Park, sandwiched between Taman Yarl and Taman Sri Sentosa.

The housing estates on the left side border areas such as Puchong, Bukit Jalil and Bandar Baru Sri Petaling. On the right, the road branches off to Jalan Gasing residential neighbourhoods and Petaling Jaya’s Old Town. The NPE links to the Damansara Puchong highway and Bandar Sunway.

Development of the housing estates on the left side took off from the early 1980s. Developers known for their involvement in the area are Faber Group Bhd in Taman Desa and Taman Danau Desa, Brem Holdings Bhd in Kuchai Brem Park, Aik Bee Sdn Bhd (Pearl Point development comprising retail, hotel and condominium), Sunrise Bhd (OG Heights and Fortuna Court) and Overseas Union Bank (OUG).

Others known to have been active here include Lee Yan Lian who developed Taman Bukit Indah in a joint venture with an Australian company, and also Taman United. Others such as Sin Nam are said to have developed parts of Taman Happy Garden while Tan Yew Lai developed Taman Tan Yew Lai and parts of Taman Yarl.

In recent years, with the upgrading of Old Klang Road and the completion of the NPE, both residential and commercial property developments have picked up, although on a much smaller scale because there is now less land. These developments are found not only along the road itself but also in small pockets within existing housing estates. Ongoing or recently completed projects along the road include 3rd Mile Square commercial centre by Tanjung Dikari Sdn Bhd and Zamrud apartments (in Taman Pasir Permata) by TPPT Sdn Bhd.

In Taman Desa and Taman Danau Desa, Faber Group is developing high-rise and landed residential properties in addition to the shopoffices completed about a year ago. Other developments in Taman Desa include UOA Holdings Bhd’s Desa Ria Condominiums, Zeus-TNB Properties Sdn Bhd’s Taman Bukit Tenaga apartments and Am-El Development Sdn Bhd’s Merc condominium.

In Taman Yarl, in the vicinity of OUG Club, smaller property developers are turning one-and two-acre parcels into semidees and bungalows.

City & Country visited the area to see how the road upgrading and NPE have impacted the surroundings and property values.

Congested road to six-lane highway

“Old Klang Road used to be a narrow road… there were shoplots selling fish and flowers and there were also squatters,” a long-time resident of the area recalls.

“I moved into my Taman Desa two-storey terraced house in 1976 [purchased for $65,000]. When I visited the site in 1975, I remember the area was hilly and covered with trees and rubber plantations,” she says.

“The junction where Old Klang Road branches off from the Federal Highway used to be littered with cow dung,” she exclaims, adding that she initially wanted to buy a house in Taman Seputeh but the nearby cemetery put her off.

Another consultant says the first thing that comes to mind when Old Klang Road is mentioned is the traffic. “The road was narrow then. A small accident would cause a jam and if it rained, the road would flood,” he recalls.

He added that the traffic and flood situation in the area have seen considerable improvement since the road upgrading but adds there are too many traffic lights along the way. He agrees with Lee that there is not much land left to develop in the area, and says completed or ongoing projects include commercial developments by Glomac Bhd in OUG (OUG Square) and South Malaysia Industries Bhd in Kuchai Entrepreneurs Park (Dynasty 2 and 3).

Taman Desa, OUG and Taman Yarl

“Taman Desa is the prime location along the entire left side of Old Klang Road, primarily due to its direct connection to the Federal Highway and the KL-Seremban Highway,”

He adds that if the smaller developers in Taman Yarl read the market right for their niche projects, then the take-up rates should not be a problem. “Sales should also be good since it is in a matured housing estate. However, these projects are too small to be of any impact,”

He notes there is some upward movement in the pricing and rental of properties along Old Klang Road but it takes time for the market to adjust from the days before the road upgrade as there is limited new supply.

“People are now starting to realise that the road is relatively free of traffic and it is close to the city… demand is picking up but it still needs time for people to come in,”

Corporate : UBS

UBS reiterates Malaysia’s long-term value to foreign investors

UBS remains bullish on the long-term value of Malaysia for foreign investors and will continue to support the Government’s drive to strengthen the capital markets.

Speaking at a media briefing, hosted by key executives of UBS and held in conjunction with the Invest Malaysia Conference 2006, Rory TAPNER, Chairman and Chief Executive Officer of UBS in Asia Pacific said: “In light of its strong fundamentals, Malaysia continues to present a compelling story to global investors.

UBS has had a long and uninterrupted association with Malaysia’s capital markets and is one of the country’s most active brokers. In the most recent trading summary published by Bursa Malaysia, UBS had the largest market share among all foreign investment banks operating in Malaysia. UBS was one of the first foreign brokers to start trading on Bursa Malaysia when the Securities Commission awarded foreign broker licenses in September 2005, and its research coverage is the most comprehensive of all foreign brokers.

"I am confident that the continuing strength of our equity franchise in Malaysia is in no small part due to the commitment we have shown to the market since first opening an office here in 1989. Indeed, UBS is one of a very small number of global investment banks not to have withdrawn from any of the region’s equity markets as a result of the financial crisis,” said Head of Asian Equities, Chi-Won YOON.

UBS Head of Investment Banking for Malaysia and Singapore, Patrick LEE, believes Malaysia’s economic fundamentals and growth bode well for the Malaysian stock market, in particular of the IPO (initial public offering) market. “The Malaysian equity market has seen a marked increase in new listings in the last eight years and we expect this trend to continue,” he said. “Our sponsorship of the Invest Malaysia Conference 2006 underlines our continued commitment to facilitate Malaysia’s markets in becoming increasingly strong, liquid and attractive for all investors, fund managers and analysts,” added Tapner.

UBS has lead-managed numerous ground-breaking equity, debt and M&A transactions in Malaysia in recent years. These include: IPOs from Bursa Malaysia and Astro; convertible bonds from IOI Corp and YTL Power; the first quasi-sovereign international Sukuk bond for Sarawak; Telekom Malaysia's bond and selldown in Telkom South Africa; and Telekom/Khazanah’s acquisition of a 24% stake in Singapore’s MobileOne.

Source of this article dated 23 March 2006