The Malaysia: My Second Home (MMSH) programme has not produced the results desired and the Government should therefore consider taking drastic steps, such as reviewing the entire programme and perhaps even privatising it, a recognised real estate agent has suggested.

“If privatisation is considered too extreme, the Government could at least allow the private sector to take up a promotion and marketing role,” said Charlie Chan, chief executive officer of SK Brothers Realty Sdn Bhd.

For a start, he said, the Government should hold dialogues with the private sector, including developers, estate agents and even chambers of commerce so fresh strategies can be developed.

“There should be no hard and fast rule. For example, there should be no insistence of evidence (from a foreign applicant) of fixed income from abroad, such as a salary slip, because many business people are unable to produce them,” he said.

If the rules cannot be flexible, then even privatising the programme will not work, Chan said.

While MMSH is a great improvement over the Silver Hair programme introduced in 1996 which targetted mainly elderly, wealthy Europeans, Chan said favouring retirees with money alone is not enough.

“People in business and professionals should also be encouraged to invest - they should be allowed to carry out their businesses or professional practices here, for their talents will also contribute to the national economy,” he said.

Arguably the best step would be to privatise the entire programme as the private sector has greater motivation and drive, unlike the Government, which is not a business organisation, he said.

Ideally, Chan said the programme should be taken out of the purview of the Ministry of Tourism and placed under the Prime Minister’s Department since it oversees the purchase of properties by foreigners through the Foreign Investment Committee.

By doing so, there would be better co-ordination among the relevant agencies such as Immigration, Housing and Finance to accelerate foreign investment.

In time to come, he added that MMSH could even be expanded to become a “Malaysia My Permanent Home” programme.

Under this, the Government could encourage people to settle down in Malaysia as permanent residents, bringing with them RM1 million each.

“If we get 10,000 people through such a programme, it will mean RM10 billion flowing into the country,” Chan pointed out.

A total of 853 wealthy, elderly Europeans applied to live in Malaysia under the Silver Hair programme between 1996 and 2001. It was replaced with the MMSH in 2002 and up to April last year, 2,834 people had taken part in it.

Foreigners under MMSH can buy houses priced above RM150,000, whereas those not in the programme can only buy houses costing RM100,000 more. The programme also allows an applicant to bring in dependants and a maid.

Participants get a five-year social visit pass with a multiple-entry visa - the longest visa period issued by the Immigration Department at present.

The Silver Hair programme was mooted under the National Economic Action Council’s plans to boost the economy by bringing in foreign investors as well as create a “goodwill connection” between Malaysia and other countries.