KUALA LUMPUR, Aug 24 (Sin Chew Daily) – The country loses RM3.8 billion by turning down the applications of some 5,000 Malaysia My Second Home (MM2H) applicants, says Lim Kok Sai, the outgoing president of MM2H Consultants Association.

Lim said 1,000 applications were rejected from September to November last year and another 4,000 applications were turned down for the first six months of this year, causing a loss of RM776 million and RM3.1 billion in revenue respectively.

The association would meet Prime Minister Tan Sri Muhyiddin Yassin soon to express the association's dilemma.

Lim said the association would be submitting its appeal against the rejection of 1,000 applications with the hope the tourism, arts and culture ministry would review the 4,000 rejected applications.

"The ministry received more than 8,000 applications last year. In 2018, the ministry received 6,279 applications out of which 5,610 were approved. The rate of approval was 89%.

"From September to November last year, only 10% of the applications were approved after about 1,000 applications were rejected," said Lim.

Speaking at the 14th annual general meeting of the association, Lim said the association hoped that the prime minister would understand the predicament of the members as the government's decision to return the 4,000 applications had affected the members as MM2H agents.

"The association has spent lots of time and money to organize talks to promote the MM2H program in Hong Kong. The applicants might even request for refund of deposits they have paid for properties in Malaysia.

"The applicants may feel that the government is unprofessional. Additionally hotels, medical tourism and real estate sectors will all be affected too," he said, urging the government to review the 4,000 applications filed during the first half of this year.

Lim said the association is made up of 250 members. They did not have any business for the first half of the year and have expected the situation to remain the same in the second half.

He also said some members had stopped operating in the absence of any revenue and the staff have since switched to other lines such as reception, delivery services and online portals.

"The association wrote to the ministry in June in order to find out the reasons for the suspension of MM2H.

"The ministry deputy sec-gen replied that they were in the midst of revising the conditions and thresholds for new applications due to COVID-19," Lim said.

He is of the view that the suspension of MM2H poses a huge challenge to the industry and that the government could just announce the updated requirements for new applications instead of suspending the entire program. The ministry should state the reasons for rejecting the applications. 

Lim said the association received a reply from the deputy sec-gen on August 17 that MM2H applicants would need to request for review.

"Apart from the rejection of 90% of applications, no new applications have been allowed until 2021," he said.

Lim said it was unfair for the applicants who have planned to retire in Malaysia while their children can study here.