Sarawak to License Its Own S-MM2H Agents Starting in 2025
In a significant shift for Malaysia’s popular Malaysia My Second Home (MM2H) program, Sarawak is set to assume full control of licensing for the Sarawak-specific version, known as S-MM2H, starting January 1, 2025. This move grants Sarawak’s Tourism, Creative Industry, and Performing Arts Ministry greater autonomy in regulating the program, reflecting the state’s vision for a more locally managed, tailored approach to tourism and long-term residency.
Announced by Minister Datuk Seri Abdul Karim Rahman Hamzah, this development also introduces revised licensing requirements for agents, with a focus on locally owned businesses and stricter eligibility standards. This article explores the key changes, the new agent licensing requirements, and the program’s recent growth, along with what applicants can expect in 2025 and beyond.
Sarawak’s New Licensing Authority
As of July 2, 2023, the federal Tourism, Arts, and Culture Ministry delegated authority over the S-MM2H program to Sarawak. This shift allows Sarawak to handle the licensing of agents and the entire application process under a single, expanded One-Stop Centre dedicated to S-MM2H applications and inquiries. Minister Abdul Karim explained that this development is a significant step forward in empowering Sarawak to oversee its own long-term residency program, specifically adapted to local standards and the state’s unique tourism priorities.
Previously, Malaysia’s MM2H licensing was controlled by federal authorities through the Tourism Industry Act of 1992. The push for more centralized control in recent years, however, led to some friction between the federal and Sarawak state governments, with Sarawak advocating for autonomy to regulate its unique tourism industry and residency program. The new arrangement not only simplifies the process for S-MM2H participants but also strengthens Sarawak’s control over its tourism ecosystem.
Expanded Role of the S-MM2H One-Stop Centre
With the delegation of power to Sarawak, the S-MM2H One-Stop Centre now plays an expanded role, processing both applications and licensing for S-MM2H agents. This approach ensures that the entire process, from start to finish, remains within Sarawak’s jurisdiction, allowing for a more tailored, efficient experience. This One-Stop Centre aims to be a resource for agents and applicants alike, centralizing services for easier access and quicker processing.
By consolidating these functions, the ministry hopes to streamline the application journey for participants, reducing delays and maintaining clear communication channels. With a locally managed One-Stop Centre, Sarawak can better address specific needs and preferences unique to the region, helping applicants feel more connected and supported.
New Licensing Requirements for S-MM2H Agents
Under Sarawak’s new requirements, all S-MM2H agents will need to reapply for their licenses to comply with state-led standards. Minister Abdul Karim stated that this update would affect 40 previously licensed agents whose licenses were pending renewal until the delegation of authority to Sarawak was confirmed. Starting January 2025, these agents must meet Sarawak’s new criteria to operate legally within the state.
The following are the new licensing requirements for S-MM2H agents:
- Local Ownership and Incorporation: Agents must be registered as Sarawak-owned private limited companies (Syarikat Sendirian Berhad) under the Companies Act 2016. This ownership criterion ensures that the program remains rooted in Sarawak’s local business ecosystem.
- No Foreign Nationals on the Board: Only Malaysian citizens can serve on the board of directors, and at least 51% of the board members must be Sarawak-born individuals. This rule strengthens the program’s commitment to local involvement and oversight.
- Paid-Up Capital Requirement: To qualify for an S-MM2H license, companies must meet a minimum paid-up capital of RM100,000. This requirement establishes a baseline for financial stability and operational capacity.
- Exclusive Shareholding: Shareholders in an S-MM2H company cannot hold shares in other licensed S-MM2H companies. This regulation is in place to prevent monopolies and ensure fair competition among licensed agents in the state.
- Service Fees Compliance: Agent companies must charge service fees in accordance with the Price Control and Anti-Profiteering Act of 2011. This measure protects consumers by ensuring fair pricing and ethical business practices.
These requirements are designed to keep the program’s benefits within the state and prevent monopolistic practices. Sarawak aims to create opportunities for local businesses to thrive under the S-MM2H framework, encouraging Sarawakians to take part in the tourism and residency sectors.
Enhanced Application Standards for S-MM2H Participants
Alongside the new licensing requirements, Sarawak has also enhanced the application standards for S-MM2H participants. The changes reflect Sarawak’s aim to attract high-value, responsible residents who align with the state’s cultural and economic goals. By refining these standards, Sarawak hopes to make the program more appealing to qualified candidates worldwide.
Recent Growth and Success of the S-MM2H Program
The S-MM2H program has gained popularity since Sarawak’s Tourism Ministry took over from the state immigration department in 2020. Minister Abdul Karim recently reported a 23% increase in applications from 2022 to 2023, with numbers rising from 441 to 542. In the first eight months of 2024 alone, 386 applications were approved, with another 90 currently under review.
Sarawak’s approach to S-MM2H appears to be attracting more applicants than ever, especially from diverse international backgrounds. Chinese nationals top the list with 391 applications, followed by 350 British, 262 Taiwanese, 255 from Hong Kong, 210 Americans, 207 Singaporeans, 178 Koreans, 138 Japanese, 121 Australians, and 117 Indonesians. This diverse interest highlights Sarawak’s growing appeal as a long-term residency destination, thanks to its rich culture, natural beauty, and welcoming environment.
Sarawak’s unique take on the MM2H program sets it apart from the rest of Malaysia. For instance, the state has its own criteria for agent licensing, distinct from those in West Malaysia. This localized approach allows the program to evolve in ways that directly support Sarawak’s tourism and economic goals, creating a more customized experience for both agents and applicants.
What This Means for Agents and Participants
For agents, the new requirements mean that they’ll need to prepare for the reapplication process by January 2025. The focus on Sarawak ownership, board composition, and financial standards will likely require some agents to make adjustments to meet these new benchmarks. The requirement that shareholders cannot own shares in multiple S-MM2H companies ensures a level playing field, benefiting smaller, local businesses and reducing the potential for monopolies in the market.
For applicants, these updates indicate a stronger commitment to a streamlined, efficient application process backed by Sarawak’s expanded One-Stop Centre. With a more targeted approach, participants can expect clear guidance and support tailored to Sarawak’s unique cultural and economic landscape. The program’s enhancements also signal a commitment to welcoming residents who genuinely want to engage with Sarawak’s communities and contribute positively to its tourism sector.
Looking Ahead
As Sarawak prepares to take full control of the S-MM2H program’s licensing, agents and applicants have a lot to look forward to. The changes reinforce Sarawak’s autonomy and commitment to fair business practices, creating a solid foundation for sustainable growth. By ensuring that licensed agents meet specific standards and that the program’s benefits stay within the state, Sarawak is setting a new benchmark for residency and tourism initiatives in Malaysia.
With Sarawak’s diverse appeal and natural attractions, the S-MM2H program offers an incredible opportunity for foreigners to experience life in one of Malaysia’s most vibrant states. For those considering a second home in Sarawak, the S-MM2H program now provides a clear, transparent path to long-term residency in a community-focused environment.
Conclusion
As the S-MM2H program evolves, Sarawak is focused on making the process simpler, more transparent, and ultimately more rewarding for both agents and participants. This change empowers the state to manage the program according to its values and priorities, ensuring that applicants and agents alike benefit from a more locally managed, fair, and thriving tourism industry.
