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Malaysia Wants Foreigners to Stay

The Malaysian government announced its support for Tourism Malaysia"s program called Malaysia: My Second Home (MMSH), which is intended for foreigners wishing to make Malaysia their long-term home, by giving financial breaks as an incentive for travelers wishing to participate.
The government said it is giving applicants a choice of duty-excise-sales tax free import of their cars, or once settled in Malaysia, entitled to buy a new car free of excise duty and sales tax.
The government is using the tax break as an incentive because new cars imported into the country carry import tax and duties which can add up to 400 percent on the invoice value in the case of an expensive brand.
As of April, a total of 3,687 foreigners are in Malaysia under the program.
It was originally intended to lure wealthy elderly Europeans, but it only attracted 853 participants from 1996 to 2001. Since 2002, wooed by better incentives, the program drew 2, 834 participants.
"An applicant must show ownership of the vehicle and shown in the registration/ownership document prior to obtaining the visa and the vehicle must be imported within six months from the date the visa is endorsed," Malaysian Treasury said.
"The vehicle imported or purchased locally is for personal use only," it added.
Purchase of a house, seen as the biggest single expenditure for a family moving to a new location, has also been given a financial incentive for program participants. Under the program, foreigners are allowed to buy a house for a price well below the average price.
The MMSH program was started by the government to boost the economy as well as promote “goodwill connection” between Malaysia and residents of other countries who see Malaysia as an ideal place to set-up as a second home.
Other features of the program include the ability for participants to bring dependents and maids, and are entitled to multiple-entry visa valid for five years.

Kuala Lumpur 21/04/2005