Info on Malaysian MM2H Visa

[Davita]

The Malaysian Gov't released some statistics from their MM2H Visa program which are interesting. It says over a million people have applied since 2002 but only 33,300 have been processed.
The Fixed Deposits (FD) deposited in Malaysian banks, required by those successful, converted from foreign currencies amounts to MYR 4.9 billion (US$1.14 billion). It also says over MYR12.8 billion (US$3 billion) has been added to the Malaysian economy since the MM2H inception.
I wonder if this info would inspire the Indonesian Gov't to establish a similar visa for RI...it would greatly enhance the Indonesian economy if they had such a Visa.
http://www.freemalaysiatoday.com/ca...llion-applied-but-only-33000-here-under-mm2h/

 

[lifelongexpat]

Indonesia would be greatly enhanced if it copied Malaysia in a lot of respects:

1. Ownership of land/property (freehold title).

2. A 90 day free visa on arrival with no questions asked.

3. Being able to be a shareholder in a local limited liability company (unlike the PT PMA scenario here).

4. Much less bureaucracy (vastly less paperwork).

5. Actually wanting expats there and appreciating what we can bring to the table.

 

[Davita]

Indonesia would be greatly enhanced if it copied Malaysia in a lot of respects:
1. Ownership of land/property (freehold title).
2. A 90 day free visa on arrival with no questions asked.
3. Being able to be a shareholder in a local limited liability company (unlike the PT PMA scenario here).
4. Much less bureaucracy (vastly less paperwork).
5. Actually wanting expats there and appreciating what we can bring to the table.

Your points above would surely benefit foreigners like ourselves to live/retire in Indonesia but how would they benefit Indonesians?

 

[lifelongexpat]

I've often said that Indonesia is missing out on alot of investment from small businesses which are not feasible due to the requirements of a PMA company.

In Malaysia you can own your own local limited liability company (Sdn Bhd or Senderian Berhad) and be eligible for a 2 year (easily renewable) work permit. The only stipulation is a paid up capital of $115,000 for 100% ownership or $81,000 if part of the shares are owned by Malaysians. If you don't need a work permit, you can just have a paid up capital of $1.

How would this benefit Indonesian? The country would attract smaller and more innovative/niche investments that would most likely be directly operated by the investor themselves. Any local employees would be trained by that person and probably learn alot more than being just another number in an MNC.

That equates to more expats, more tax revenue, more money spent in the local economy, more employment to locals etc etc.

 

[Davita]

I've often said that Indonesia is missing out on alot of investment from small businesses which are not feasible due to the requirements of a PMA company.

In Malaysia you can own your own local limited liability company (Sdn Bhd or Senderian Berhad) and be eligible for a 2 year (easily renewable) work permit. The only stipulation is a paid up capital of $115,000 for 100% ownership or $81,000 if part of the shares are owned by Malaysians. If you don't need a work permit, you can just have a paid up capital of $1.

How would this benefit Indonesian? The country would attract smaller and more innovative/niche investments that would most likely be directly operated by the investor themselves. Any local employees would be trained by that person and probably learn alot more than being just another number in an MNC.

That equates to more expats, more tax revenue, more money spent in the local economy, more employment to locals etc etc.

Ok! I agree with your above about creating foreign owned companies as there are many opportunities if it weren't for Indonesian's xenophobia.....but it doesn't address the reason for retirees, or others, who simply wish to stay in Indonesia as their home or 2nd home as does the MM2H program, which the minister admits, does benefit the Malaysian economy.

 

[lifelongexpat]

I lived in Malaysia for close on 5 years and know the MM2H concept well. I even tried selling the concept to my parents who thought it was interesting. Plus it's not only for retirees, if you can meet enhanced financial criteria, non-retirees are eligible to participate.

MM2H has caught on because the Malaysian government has promoted it well and basically sent out the message 'Malaysia wants you to retire here' (as long as you have a reasonable amount of $$$ which is not excessive).

In return, participants get:

1. A 10 year multiple entry residents visa and their own dedicated line at immigration.

2. The right to buy property (a minimum price threshold applies but for someone from a western country, it's not excessive).

3. The right to buy a car tax free locally or import a car from overseas tax free.

4. A work permit for a maid or driver.

5. The ability to own shares in a local company as an investor so long as the investment exceeds $81,000.

6. Being able to retire in a country that doesn't have a whirlwind immigration policy, is generally welcoming to foreigners, has better infrastructure, where English is widely spoken and where alcohol/nightlife is not an issue despite Sharia law being present in the country.

It's kinda easy to see why the program has taken off. In comparison the retirement KITAS option in Indonesia lacks significantly.

Who would want to sell up and move to a country who only gives a residents permits for 12 months at a time? Older people aren't as resilient as people in their 30's/40's.

Secondly older people are less adept at learning the local linguo. So the language barrier would be a huge problem for most unless they chose Bali.

Indonesia is a great country with so much to offer. However unless it stops blaming the Dutch (and citizens of the remaining 194 countries on the planet) for everything that is wrong here, it will miss out on so many great opportunities.

 

[Davita]

I agree with all your points as I have an MM2H but have never used as my wife is from Indonesia...so it's a plan B.
However, I use every opportunity to tell Indonesians how a similar system would benefit their economy at very little cost...as you've also noted.

 

[lifelongexpat]

To give Indonesia some credit, it does have two advantages over Malaysia:

1. Permanent residency is attainable in Indonesia, albeit in a lot of respects it is currently heavily restricted compared to ILR in the UK, the American Green Card system and permanent residency in general elsewhere.

In Malaysia, it is more or less impossible to become a permanent resident unless your Muslim (doesn't matter where you come from or how much money you have).

2. The same goes for citizenship in Malaysia. Unless you're Muslim, it will never happen. Examples include (non-Muslim) immigrants from India and China who married locals, have lived there for 50 or more years and still being denied citizenship despite having a Malaysian spouse and children.

So Indonesia does have its plus points. Permanent residency and citizenship is available regardless of religion.

 

[mauricio]

I agree with all your points as I have an MM2H but have never used as my wife is from Indonesia...so it's a plan B.
However, I use every opportunity to tell Indonesians how a similar system would benefit their economy at very little cost...as you've also noted.

Yes, indeed. Retired expats living in Indonesia = extra tourism dollars for the country.