Sabah to Autonomously Manage State MM2H and License Local Agents

The Malaysian federal government has officially delegated authority to Sabah to implement its own version of the Malaysia My Second Home (MM2H) program, marking a significant shift in the state’s autonomy over immigration and tourism matters.

Malaysia granted Sabah full control over its state program following a special meeting in July between Liew and the federal Minister of Tourism, Arts and Culture, Dato’ Seri Tiong King Sing, where government officials discussed the decision to delegate full authority to Sabah.

This move comes after a tumultuous period for the national MM2H program. In 2021, the federal government introduced stringent new requirements, leading to an 85% drop in applications. Sarawak’s MM2H program, on the other hand, thrived amid the chaos, registering a 2,800% increase in applications in 2023.

Subsequent revisions in December 2023 and June 2024 aimed to make the program more attractive to high-net-worth individuals, introducing a three-tier system without income requirements.

During this period of change, the federal MM2H program faced significant licensing delays. In May 2024, agents had to reapply for licenses under revamped criteria, causing confusion and operational challenges in the industry.

Amidst these changes, Sabah launched its own MM2H program on July 2, 2024, offering a ten-year residency permit to successful applicants. Initially, the state could only appoint “qualified representatives” to process applications.

Through the federal government’s delegation of power, Sabah has full authority to appoint and monitor state agents for the Sabah-MM2H program.

This delegation of power introduces new dynamics for agents operating in Sabah. Agents must now obtain licenses specifically from the Sabah state government through the Ministry of Tourism, Culture and Environment (KePKAS). KePKAS will implement its own set of guidelines for appointing and licensing agents, which may differ from the federal MM2H program’s requirements.

Datuk Christina Liew, Sabah’s Minister of Tourism, Culture and Environment, explained that “this delegation of power pertains to the appointment of agents by KePKAS, the monitoring of the agents, and the enforcement of the program.”

She added that the ministry has its own guidelines for agent appointment and licensing. This shift means increased local oversight, as Sabah authorities are now responsible for monitoring agents and enforcing program rules.

The State Committee, chaired by Liew, will oversee the program’s operations, including screening applications before issuing MM2H passes. Sabah hopes this localized control will streamline the application process, which previously took eight to ten weeks for approval.

The formalization of this delegation occurred on August 28, 2024, when Dato’ Roslan Tan Sri Abdul Rahman, Secretary-General of the federal Ministry of Tourism, Arts, and Culture, handed over the letter of intent to Josie Lai Mei Sing, Permanent Secretary of Sabah’s Ministry of Tourism, Culture, and Environment.

Roslan has called for future trilateral meetings between the federal ministry, Sabah, and Sarawak’s tourism ministry to address any issues arising from the implementation of MM2H in these states, emphasizing the importance of “a good working relationship.”