Federal audit: MM2H health, conduct declarations inadequate

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The report said that in general, the achievement of the MM2H scheme for the period of 2015 to September 2019 was good. — Picture by Yusof Mat Isa
The report said that in general, the achievement of the MM2H scheme for the period of 2015 to September 2019 was good. — Picture by Yusof Mat Isa

KUALA LUMPUR, Sept 28 — The Ministry of Tourism and Culture (Motac) must improve the health and personal conduct declarations made for the Malaysia My Second Home (MM2H) scheme, said the Auditor-General in the 2019 Series II report.

In the audit, the A-G said there was a lack of supporting documents submitted for the RB-I Medical Report that required the self-declaration of infectious diseases such as tuberculosis, hepatitis A/B and AIDS.

“Based on the results of the review of the sample, formulated RB-I for all participants and dependents is not supported by confirmation documents from the country of origin.

“This involves a total of 26,110 new and extended participants for the period from 2015 to September 2019 as well as their dependents of 23,833 people,” said the report that was tabled in Parliament today.

The report also stated that there could be national security risks because Letters of Good Conduct (LOGC) were not required of MM2H participants' dependents.

According to the report, an audit review of 59 files of MM2H participants found that each approved application was accompanied by a LOGC only for the participants and none for their 107 dependents.

“This is because the rules do not prescribe LOGC to be submitted for dependents carried by the participant. The Audit also found that no other method was prescribed to verify that the dependents were free from criminal misconduct in the country of origin.

“Based on the results of the review of the sample, it is concluded that LOGC is not included for all dependents of 23,833 people for applications from 2015 to September 2019.

“The absence of LOGC for all these dependents could result in those with criminal records entering the country and getting the facilities offered as dependents of MM2H participants,” said the report.

On another matter, the report said the ministry’s assertion of RM11.125 billion in revenue tied to the MM2H scheme could not be verified accurately.

“According to Motac officials, the total contribution is likely to be lower than reported when an applicant who has been conditionally approved does not continue to participate in the MM2H Program.

“Motac has never set a target for total participant spending. The calculation of participants' monthly household expenses made by Motac is based on the following estimates: a single participant who has been in Malaysia for six months on average is estimated to spend at least RM5,000 per month. Family participants who have been in Malaysia for nine months are estimated to spend at least RM10,000 a month,” said the report.

However, the report said that in general, the achievement of the MM2H scheme for the period of 2015 to September 2019 was good as there were 21,292 participants compared to the set target of 17,500.

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