Sabah Housing and  Real Estate Developers Association (SHAREDA) expressed deep concern and disappointment in light of the recent decision by the Federal Ministry of Tourism, Arts and Culture  (MOTAC) to suspend the licence of all MM2H agents, which has in turn affected the  launch of the Sabah Malaysia My Second Home (Sabah-MM2H) programme.

According to SHAREDA President, Datuk Chua Soon Ping, without MM2H agents, there is no  one to market the programme effectively. 

More than two years ago, SHAREDA proposed the Sabah-MM2H programme to the  state government as a vital catalyst to stimulate the market and generate significant economic benefits. This proposal was based on comprehensive studies of successful  second home schemes in neighbouring states and countries. After rigorous evaluation,  the initiative received consideration from the Tourism Ministry and was subsequently  approved by the state cabinet, despite changes in leadership with two ministers and  two permanent secretaries overseeing the process. 

The abrupt suspension by MOTAC, communicated just days before the planned  launch on June 1, 2024, is both unexpected and unexplained. This decision  undermines the efforts of licensed agents, particularly those in Sabah, who have been  preparing to facilitate the influx of potential applicants under the newly introduced  Sabah-MM2H programme. 

Sabah has long been marginalised in terms of receiving its fair share of revenue,  despite clear constitutional provisions. The economic potential of the Sabah-MM2H  programme represents a significant opportunity to rectify this imbalance, generating  additional revenue that could greatly enhance our state's infrastructure, including  water, electricity, roads, and drainage system. 

The new Sabah-MM2H policy is designed to act as a powerful economic catalyst,  leveraging its status as a premier tourism destination to strengthen our economy. Chua stated that he firmly believes that the programme will make Sabah more competitive with the neighbouring countries and significantly boost the local economy through increased  foreign investment and tourism. 

Chua also stressed that SHAREDA earnestly appeals to the federal government to reconsider their decision and ensure  the smooth implementation of the Sabah-MM2H programme. It is crucial that the rights  under the Malaysia Agreement 1963 (MA63) and the Immigration Act 151 are upheld,  which grant the Chief Minister special authority over foreign residency policies within  the state. 

The licensing of agents by MOTAC is meant to ensure professionalism and quality  service, crucial elements in promoting tourism—a top revenue earner for Sabah. The  economic contributions from foreign visitors are indispensable, providing vital market  stimulation and economic spin-offs. In the absence of connections through MOTAC  agents, the state can use alternative paths by accepting online applications and  drawing from a new pool of local agents through our own network, rather than relying  heavily on federal agents. 

SHAREDA stands ready to support the state in launching the Sabah MM2H programme and is prepared to assume the role of agents, ensuring that  applicants meet the prerequisite of purchasing property valued above RM 600,000. By  connecting with their network of agents overseas, SHAREDA aims to bridge any gaps and offer  sustainable solutions until a permanent resolution is achieved. Alternatively, a potential  avenue that smoothen out the application process is by way of an online application.  

Chua urges the federal government to recognize the importance of the Sabah-MM2H  programme for our state's economic future and to facilitate its seamless launch and  operation.