AG's Report 2019 Series 2: No letter of good conduct for MM2H participants' dependants poses national security risk

KUALA LUMPUR (Sept 28): The absence of a letter of good conduct (LOGC) requirement to verify that dependants of participants of the Malaysia My Second Home (MM2H) programme are free from criminal misconduct poses a risk to national security.

According to the Auditor-General's Report 2019 Series 2, MM2H programme management was also found to be inefficient and ineffective with the absence of an integrated database and weaknesses in the internal controls of the Malaysian Immigration System (MyIMMs).

“The audit further found that no LOGC was attached for 107 dependants of 59 participants as the rules did not stipulate that the letter had to be submitted and that no other method was used to verify that the dependants were free from criminal misconduct in their countries of origin,” according to the report.

Unclear rules or procedures made it difficult for the Ministry of Tourism, Arts and Culture (MOTAC) and the Malaysian Immigration Department (JIM) to effectively monitor and evaluate the achievement of the programme.

"Besides that, the minimum offshore income of RM10,000 per month has never been reviewed since the MM2H programme was started in 2002. The inconsistent recognition of the health status of MM2H programme applicants invites the risk of spreading dangerous infectious diseases.

"Participants' children enjoy eligibility as dependants even though they are over 21 years old due to unbalanced rules," the report said.

However, in general, MM2H participation from 2015 to September 2019 showed good achievement, with a total of 21,292 people participating in the programme compared to the set target of 17,500.

Coordination between MOTAC and relevant ministries or agencies needs to be enhanced by establishing an integrated system to improve the effectiveness of the implementation, monitoring and evaluation.

The report said MOTAC, the JIM and the MM2H Steering Committee need to review and revise the circular or guidelines of the MM2H programme to be more uniform, clear and comprehensive.

Apart from that, a study should also be conducted on health screening procedures to be in line with the standards set by the JIM and Ministry of Health (MoH).

In addition, the report also recommended the use of digital smart cards to record information on participants’ property purchases, residential and employment for more effective monitoring purposes.

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