Stringent MM2H conditions aimed to attract high calibre foreign investors, DBKL bans adding walls to create more bedrooms in commercial-titled apartments and, more
15th August – 21st August
Economist Datuk Jalilah Baba said the stricter criteria for Malaysia’s My Second Home (MM2H) program should not be misunderstood as discouraging participants from the scheme.
Meanwhile, Kuala Lumpur City Hall’s (DBKL) Council of Buildings has introduced a new rule that bans the construction of room partitions or additional bedrooms in commercially-titled apartment with strata status within the jurisdiction of Kuala Lumpur.
1. Stringent MM2H conditions aimed to attract high calibre foreign investors
Economist Datuk Jalilah Baba said the stricter criteria for Malaysia’s My Second Home (MM2H) program should not be misunderstood as discouraging participants from the scheme.
Instead, the stringent prerequisites were aimed to attract top-tier foreign investors, said Malaysian Investment Development Authority’s former Director-General.
She explained that the MM2H programme is tailored for foreign nationals interested in making Malaysia their second home and operating base for their business, reported the New Straits Times.
The focus is on attracting substantial investment that would benefit both investors and the country’s economy.
Jalilah noted that the prerequisites served a dual purpose – deterring low-value ventures while promoting projects with growth potential and knowledge transfer.
“The intention is to foster a multiplier effect that cascades benefits throughout the nation, ultimately bolstering our collective knowledge base, technological insights and skill-sharing,” she said.
Meanwhile, MM2H Consultants Association President Anthony Liew expressed concerns on the programme’s stricter conditions, which resulted a substantial drop in applicants.
He suggested a more nuanced approach, such as reconsidering the income threshold since some foreign retirees have passive but inconsistent income streams.
Liew also underscored the importance of maintaining consistent and stable policies to foster foreign confidence in the programme.
2. DBKL bans adding walls to create more bedrooms in commercial-titled apartments
Kuala Lumpur City Hall’s (DBKL) Council of Buildings has introduced a new rule that bans the construction of room partitions or additional bedrooms in commercially-titled apartment with strata status within the jurisdiction of Kuala Lumpur.
With effect from 1 August 2023, the new rule was communicated to the heads of Management Corporations (MC), Joint Management Bodies (JMB) and Sub Management Corporations (Sub-MC) throughout the Federal Territory of Kuala Lumpur, reported the New Straits Times.
Kuala Lumpur Mayor Datuk Kamarulzaman Mat Salleh explained that the ban is founded on several reasons. First, converting living and dining spaces into new bedrooms violates the original Development Order (DO) that was approved by relevant authorities, including DBKL.
The rule is also aimed at maintaining adequate natural light at existing living areas and curb overcrowding within units. He pointed that adding more bedrooms would also create the impression that they were being rented out for commercial gains.
The ban’s primary objective is to prevent the existence of residential units that are used for commercial purposes, such as hostels, as well as prevent an increase in traffic and population density, which could affect neighbouring residents.
3. Johor to build 50 RKJ homes for poor, hardcore poor
Johor has set aside RM6.5 million for the construction of 50 housing units as part of the Rumah Kasih Johor (RKJ) programme, helping the state’s poor and hardcore poor get up the property ladder.
Datuk Mohd Jafni Md Shukor, Chairman of the State Housing and Local Government Committee, said recipients of the RKJ homes will not be required to pay for the housing unit, reported The Star.
“The state government hopes the housing assistance worth RM100,000 per person to the poor and hardcore poor under the eKasih system can help them live in more comfortable conditions and improve their standard of living,” he said.
He shared that each district in Johor will see five recipients of RKJ homes and that there are plans to expand the initiative in the future.
Notably, the state government targets to provide 100 RKJ homes yearly, said Mohd Jafni, who also serves as Bukit Permai assemblyman.
The 50 approved RKJ units have undergone site investigation, with construction works expected to start in September.
4. DBKL launches two affordable housing projects to help M40, B40 groups
Kuala Lumpur City Hall (DBKL) has launched two affordable housing projects in Desa Tasik Sungai Besi – Residensi Wilayah and Residensi Prihatin Madani – to cater to those belonging in the M40 and B40 income groups.
Nestled on a 1.4ha site, Residensi Wilayah will comprise 910 housing units spanning 902 sq ft each and priced at RM300,000 per unit, reported Bernama.
Residensi Prihatin Madani, on the other hand, will feature 100 housing units of 902 sq ft and priced at RM200,000 each.
Residensi Wilayah is open to applicants aged at least 21, with a monthly income of below RM10,000 (for singles) or RM15,000 (for married individuals) who were born, live and work in Kuala Lumpur.
Residensi Prihatin Madani is part of the Malaysia Madani concept, aimed at providing affordable housing to the M40 and B40 groups.
“Priority will be given to applicants who were born, reside in, or work in Kuala Lumpur and do not own a home,” said DBKL.
5. Sarawak’s MM2H programme sees encouraging response
Sarawak’s Malaysia My Second Home (MM2H) programme witnessed encouraging response, with 2,093 applicants approved since 2007.
The state approved 411 applications in 2022, up 1,422% from the previous year. It also approved 406 applications during the first eight months of this year, reported Free Malaysia Today.
Sarawak Tourism, Creative Industry and Performing Arts Minister Abdul Karim Rahman attributed the hike in applications to the programme’s attractive conditions.
Notably, the state’s MM2H programme imposes fewer restrictive financial conditions compared to the federal scheme.
Applicants in Sarawak’s MM2H programme are required to make a RM150,000 or RM300,000 for couples, fixed deposit. They should also have an offshore income of RM7,000 or RM10,000 for couples per month.
In comparison, the federal government requires its applicants to have RM1.5 million in assets, RM40,000 in monthly offshore income and a RM1 million fixed deposit.
Applicants are also required to pay a RM50,000 one-off fee for every dependent if the principal is 35 to 49 years old.
“We are comfortable with our current criteria, which still continue to attract applicants,” said Karim.
6. Sri Desa Entrepreneurs Park’s Block A off-limits following beam collapse
Tenants at Sri Desa Entrepreneurs Park’s Block A will have to wait a few weeks before they could return to work since the area had been cordoned off, following a beam collapse that destroyed 10 vehicles.
Block A building manager Emily Sim said the safety report, which will be prepared by a consultant appointed by Sri Desa Entrepreneurs Park Management Committee, will take two to three weeks, reported The Star.
“Kuala Lumpur City Hall (DBKL) and the Fire and Rescue Department will have to endorse it to ensure the building is safe,” said Sim.
On 15 August, a beam from the block’s upper floor fell, destroying 10 vehicles that are parked at the ground level.
Norizan Sulaiman, DBKL Building Control Department Director, said preliminary investigations indicated possible construction flaws, which could only be ascertained after a thorough probe by the Malaysian Institute of Public Works (Ikram), reported The Star.
“I cannot say for sure because we don’t want to speculate. There may be some issues with the building’s integrity,” she said.
