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Why did the federal government change their minds and are only going to review the MM2H guidelines after there was a public outcry?

Can someone advise the Federal Government to stop flip-flopping in their decisions? When the government made flip flopping decisions on the MM2H issue, many people were shocked. First of all, there is no difference between the previous PN and now NO-NAME government so there shouldnt be flip-flopping but seems like the government is at it again.

Recently Penang was once again listed by a leading international magazine as one of the top three places in the world to retire. This follows numerous other international rankings consistently placing Penang as among the top retirement destinations. However it seems the federal government has no interest to help Penang in any way. Sort of like the phrase “cutting the nose to spite the face”, Penang is a big economy in Malaysia, the federal government should be supporting Penang not find ways to sabotage Penang’s growth. Why did the federal government change their minds and are only going to review the MM2H guidelines after there was a public outcry? (https://www.thestar.com.my/news/nation/2021/09/01/govt-to-review-new-mm2h-criteria)

Some of the key changes that was supposed to happen in the new guidelines before a review was mentioned were:

  1. Minimum monthly offshore income increased from RM10,000 to RM40,000 per month.
  2. Need to have a fixed savings account of RM1 million, compared with the previous conditions of at least RM150,000 for applicants above 50 years old and RM300,000 for those 50 years old and below.
  3. Liquid assets need to be at least RM1.5 million, compared to RM350,000 and RM500,000 respectively in the past.

And worse, these new rules would have applied to EXISTING MM2H residents. Not just new ones.

Many MM2H had made Penang their choice of residence in Malaysia. The new guidelines would have had affected the Penang economy terribly and also forced the families that did not qualify to leave the country with a bitter taste in their mouths.

Does the federal government understand that even announcing the changes and then saying it will be reviewed would have resulted in potential investors and MM2H pulling out. A flip-flopping government scares potential investors whether it was a business or an MM2H retirement investment. So damage was done. Will the federal government take responsibility for losses that Penang had potentially lost?

Was the federal government doing this on purpose?