S-MM2H new licensing, conditions set for 2025

Dato Sri Karim (3rd left) after announcing the updated requirements and licensing framework for agents in the S-MM2H programme.

The Ministry of Tourism, Creative Industry, and Performing Arts Sarawak (MTCP) has just announced updated requirements and licensing framework for agents in the Sarawak-Malaysia My Second Home (S-MM2H) programme, which will take effect on Jan 1, 2025.

Minister of Tourism, Creative Industry and Performing Arts Sarawak, Dato Sri Haji Abdul Karim Rahman Hamzah announced this at a press conference in Petra Jaya on Oct 31, 2024.

With formal authority granted by Malaysia’s Ministry of Tourism, Arts and Culture (MOTAC) through a directive dated 2 July 2024, MTCP now holds the mandate to manage both application processing and agent licensing under the Tourism Industry Act 1992.

To develop the new guidelines, MTCP engaged with key stakeholders in a series of strategic discussions, including MOTAC Sarawak, the Immigration Department of Sarawak (JIMS), the State Attorney-General’s Chambers (SAG), the Sarawak State Health Department (JKNS), and other regional authorities. A productive roundtable discussion was also held with S-MM2H agents on Sept 5, 2024 at The Waterfront Hotel in Kuching, which allowed industry voices to help shape the updated programme requirements and licensing standards.

The enhanced requirements and licensing structure were submitted to the Sarawak Cabinet and officially approved on Oct 24, 2024.

“Since MTCP took over the S-MM2H programme from the Sarawak Immigration Department in 2020, MTCP has set up a One-Stop Panel to approve and expedite all S-MM2H applications,” Karim said when speaking at the press conference.

From 2007 to 2019, a total of 1,240 participants had been approved under S-MM2H, while 1,462 participants were approved between 2020 and August 2024 under MTCP's Panel Committee, after several enhancements were made on Sept 1, 2020, Sept 1, 2022, and Aug 1, 2023 to make the S-MM2H programme more attractive. The top 10 countries include China (391), the United Kingdom (350), Taiwan (262), Hong Kong (255), the United States of America (210), Singapore (207), South Korea (178), Japan (138), Australia (121), and Indonesia (117).

In 2023 alone, there was a 22.9% increase in participants, with a total of 542, contributing RM56.7 million in Fixed Deposits (FDs) to Sarawakian banks. In August 2024, a further 386 participants were approved, with FD placements of RM77.55 million in Sarawak local banks.

The S-MM2H programme has been enhanced to align with the Federal Government's updated renewal requirements for the Malaysia My Second Home (MM2H) programme set by MOTAC:

1) Enhancement of SMMH Application Programme:

a)	The S-MM2H programme is open to citizens of all countries that have diplomatic relations with Malaysia, and applicants must be 30 years old or above.
b)	A mandatory Fixed Deposit account with any local bank in Sarawak is required. The amount needed is RM500,000 for each application, including spouse and dependents. Additionally, proof of pension funds, offshore income funds, and three months of savings are required as evidence of financial capability to support themselves while residing in Sarawak.
c)	All S-MM2H pass holders are also required to stay in Sarawak for a minimum of 30 days per year as a condition for consideration of Visa extension or renewal.
d)	The S-MM2H pass duration remains five years, and participants can renew their application for another five years. After 10 years, they must apply as a new application. However, existing participants remain subject to the current renewal requirements.
e)	In addition, S-MM2H participants are not eligible for full-time employment. They may only work part-time in professional jobs (e.g., Education, Banking/Securities, Manufacturing, and Medical sectors) approved by the State Secretary through the Immigration and Labour Management Unit (ILMU), with total working hours not exceeding 20 hours per week. All applications to work under the S-MM2H programme must be submitted to the State Authority.
f)	S-MM2H participants may serve as "sleeping partners" in joint-venture (JV) businesses with local partners in sectors approved by ILMU. Participants must own at least 49% of the total paid-up capital of RM250,000 (minimum).
g)	Property purchase is optional for participants aged 30 and above. Approved participants are allowed to purchase a residential property in Sarawak with a minimum value of RM600,000 in Kuching Division and RM500,000 in other Divisions. Participants can sell their residential property after five years.
h)	Applicants are required to undergo a health examination and must have medical insurance coverage for the duration of their S-MM2H pass.
i)	Applicants are required to pay a one-off, non-refundable processing fee of RM5,000 to MTCP.
j)	Applicants, including their spouses and dependents, must provide a Letter of Good Conduct (LOGC) from their home country. PDRM Security Screenings are also required to ensure applicants for this programme are free from any criminal or legal offences.
k)	Approved participants may bring a maid, subject to compliance with the current entry requirements for foreign maids by the Immigration Department of Malaysia.

2) New Licensing Requirements for S-MM2H Agents

The following are key conditions highlighted for agents applying for licensing:

a)	A private limited company (Syarikat Sendirian Berhad) incorporated under the Companies Act 2016 [Act 777].
b)	Compliance with a paid-up capital requirement of RM100,000.
c)	Shareholders must be 100% Malaysian citizens and native Sarawakians or Sarawak-owned entities.
d)	Shareholders must not hold interests (share equity) in any other licensed S-MM2H company under the Tourism Industry Act 1992 [Act 482].
e)	Foreign nationals are not permitted to be Board Directors.
f)	Board Directors must be 100% Malaysian citizens, with a minimum of 51% being native Sarawakians.
g)	The company may operate in any division in Sarawak.
h)	S-MM2H operators may charge service fees to S-MM2H participants at rates consistent with the guidelines under the Price Control and Anti-Profiteering Act 2011 [Act 723].

The latest enhancements align with MOTAC’s standards for Malaysia’s wider My Second Home (MM2H) programme, bringing S-MM2H up to date with federal requirements. The new licensing system for agents and enhanced guidelines for participants come into effect on Jan 1, 2025. For more details, visit the MTCP’s official website at mtcp.sarawak.gov.my.