Foreign Residents Pump RM84.2 Billion Into Malaysia’s Economy Amid MM2H Fraud Case

Malaysia roundup: MM2H fraud case, Sabah opens streamlined processing center, and government highlights billions from foreign residents.
IMI
• Amman

Foreign residents contribute more than RM84.2 billion annually to Malaysia’s economy, Housing and Local Government Minister Nga Kor Ming said Saturday, citing a new analysis. Even as the government highlights long-term residency as a pillar of its tourism and investment strategy, the MM2H program made headlines this week after a court convicted an immigration officer of preparing a fraudulent visa.

Malaysia’s MM2H program currently serves over 58,000 active visa holders. The program launched in 2002 to attract long-term foreign residents through residency visas tied to financial requirements and property investment.

Nga Kor Ming’s statement comes as Malaysia’s tourism industry generated RM291.9 billion in 2024, contributing 15.1% to the national economy. Inbound tourism surged 41.1% to RM107 billion, while domestic tourism expanded 25.1% to RM98.4 billion.

The minister described Malaysia’s approach as creating a competitive advantage. The “country’s openness stands in sharp contrast to restrictive policies in certain countries, which has now become Malaysia’s competitive advantage,” he said.

Nga Kor Ming said Malaysia’s tourism success demonstrates that the country “is on the right track.” He added that the nation is “not only revitalizing our tourism sector but also positioning the country as a global hub for education, investment, and sustainable living.”

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He said the Ministry will continue promoting “livable cities, affordable housing, green public spaces, and climate-resilient infrastructure that supports both domestic and international communities who see Malaysia as their home.”

Immigration Officer Sentenced for MM2H Fraud

The Kuala Lumpur High Court sentenced immigration officer Shamsudin Ishak to eight years’ imprisonment and a RM150,000 fine on Friday for preparing a fraudulent MM2H pass. The court convicted the 51-year-old assistant enforcement officer of forging travel documents for Li Xingqiang from Vanuatu in June 2022.

Justice Azhar Abdul Hamid ruled that Shamsudin “had failed to raise reasonable doubt and the prosecution had successfully proven its case beyond reasonable doubt.” The case represents the first investigation and trial under the Anti-Trafficking in Persons and Anti-Smuggling of Migrants Act.

Shamsudin Ishak

Deputy public prosecutor Noor Haslinda Che Seman told the court that Shamsudin “had abused his position of trust and tarnished the immigration department’s image.” The court granted a stay of execution pending appeal and allowed Shamsudin bail of RM30,000 with one surety.

Defense counsel Harpal Singh requested a lighter sentence, noting that Shamsudin had served 27 years with the immigration department without prior criminal record. Shamsudin, currently suspended from work, faces an additional 12 months in jail if he fails to pay the fine.

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Sabah Opens MM2H One-Stop Center

Sabah launched its MM2H One-Stop Centre at Sutera Avenue, Kota Kinabalu, on Thursday. State Tourism, Culture and Environment Minister Christina Liew said the center will make “Sabah more accessible and attractive for international residents.”

Minister Christina Liew

The facility consolidates services from the State Government, Immigration Department, Royal Malaysia Police, and Ministry of Tourism, Arts and Culture. Liew, who chairs the Sabah-MM2H Committee, said the center will “streamline services, reduce bureaucracy and provide greater transparency.”

Malaysia designed the MM2H program to “attract foreign residents who have the potential to bring in long-term investments, spend locally and contribute positively to Sabah’s economy and society,” Liew explained. She anticipates “positive impacts across the board, from real estate, tourism, healthcare, and education to local businesses.”

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