KUALA LAMPUR: The Malaysian Investment Development Authority introduced the Investor Pass, a golden visa that will enable international businesspeople to reside in the Southeast Asian country for up to one year.
MIDA said that the program is meant to attract global entrepreneurs and investors through a streamlined process for entry into Malaysia, whereby an application’s processing time takes only five business days.
Compared to the country’s Social Visit Pass, which is allowed to stay for a maximum of three months, this is a huge extension of stay. But before you scramble to apply, be sure to sharpen your business acumen and have your finances in order.
Visa applicants must either be new entrants into the Malaysian market, an existing investor or partner in a local concern, or in active negotiation with the government.
There’s no minimum spend requirement, but prospective applicants should be “senior decision-makers” in fields including manufacturing, education, and hospitality, MIDA says to Condé Nast Traveler.
They will also be required to provide proof of employment, as well as plans for potential investments or businesses, along with a fee of 1,296.00 Malaysian Ringgit (approximately $307), inclusive of tax but exclusive of additional immigration fees.
The new Investor Pass is designed to bolster the country’s economy, in a new bid by the Malaysian government to attract international high earners with unique visa options.
The country revamped its 29-year-old Malaysia My Second Home program, or MM2H, earlier this year. The multi-tier residency program is targeted at digital nomads, business professionals and the affluent, according to the country’s Ministry of Tourism, Arts and Culture, and is a popular option for expats looking to retire abroad.
The requirements for the lowest five-year but renewable silver tier include a fixed deposit of $150,000 in one of the country’s financial institutions and the purchase of a home costing at least RM 600,000, about $142,940.
The 15-year gold tier requires investments like a $500,000 deposit and a home of at least RM 1 million-about $238,40-while the highest tier in 20 years-Platinum-mandates a deposit of $1 million and a home of RM 2 million, approximately $473,490.
“The Investor Pass in itself is intentionally short, which creates a built-in compliance checkpoint,” says Laura Madrid, a researcher at residency-by-investment consulting firm Global Citizens Solutions. “For an extension, the authorities will re-evaluate if genuine investment activity has taken place. ”
Malaysia is not alone in introducing new visa schemes as part of efforts to attract digital nomads and foreign investors.
There are several golden visa programs like these being implemented in Southeast Asian countries to attract long-term residents of high net worth.
Indonesia has a multi-tier golden visa available for as long as 10 years, while Vietnam is expected to release its version of the coveted program. And in Thailand, individuals worth at least $1 million can apply for a 10-year visa, or upwards of 5,000,000 Thai baht (about $153,120) for the country’s 20-year Privilege Residence Program.
The European Union has expressed concerns about residence-by-investment programs, saying in 2022 that they “raise inherent security, money laundering, tax evasion, and corruption risks.”
Yet this warning doesn’t seem to be dampening their popularity, particularly among Americans: Amid “unprecedented volatility” in the US, Henley and Partners now has more American clients than the next four major nationalities-Turkish, Indian, Chinese, and British-combined, Dominic Volek, the company’s group head of private clients, tells CNT.
“ Ultimately, Americans are seeking not only financial or lifestyle benefits but also the assurance that comes with having an additional legal pathway abroad, one that provides freedom of movement, access to better living conditions, and a secure alternative for the future,” says Madrid.