Cebu as a second home: Consider Malaysia's model
Written by NOAH on 8:41 AMposted by: Cebu as a second home: Consider Malaysia's model
FULL DISCLOSURE By Fidel O. Abalos (The Freeman) Updated November 09, 2009 12:00 AM
Last week, in the anniversary celebration of the Cebu Investment Promotion Center (CIPC), we heard its prime mover, Joel Mari Yu, harping on the possibility of having Cebu as the most preferred choice of global citizens who are trying to find their second home.
This development is very encouraging. For one, CIPC has the credibility and track record in investment promotion. Apparently, they already have the experience, a database and a network of moneyed individuals.
However, just like any business, promotion will only translate into profits if the products or services offered approximate the representation it makes. Otherwise, sustainability is not even an issue worth delving in. It is practically dead from the very beginning.
The idea of promoting a country as second home isn't new at all. Malaysia started it a few years back and has now started reaping dividends. What Malaysia did wasn't something really special. It wasn't something that is beyond every ordinary Filipino mind's reach. They started it five years ago when they launched "Malaysia-My Second Home" (MM2H) by offering foreigners, particularly retirees, to live permanently in their country. They started by giving five-year visa with unlimited entry/exit privileges and without minimum annual residence requirement. Permanent residency is also a possibility after a five-year stay. Retirees may also bring in household effects duty-free, and import or purchase one vehicle locally, tax free. Income tax incentives are also offered for investing retirees. Notably, recipients (foreigners) are eligible to buy houses at a cost of not less than RM150,000.00 (or roughly US$41,677.50 at the current exchange rate) each. More importantly, for purposes of owning the house, they are also entitled to borrow from local banks 60% or more of its cost or value. As a result, Malaysia topped other Asian countries for two (2) consecutive years in a row in the International Living's survey for preferred destinations.
1 comments: Responses to “ Cebu as a second home: Consider Malaysia's model ”
By Hamster on January 10, 2010 10:49 AM
Of great concern to many foreigners is the deep seated hatred towards non Muslims in Malaysia.
The recent Christian church firebombings by Muslim extremist should be a warning sign to any foreigner that it's welcome is tentative.
If you are Muslim, the "My second home" program is something to consider.
If not...go at your own risk
In addition the growing unrest of ethnic Chinese and Indians, who constitute 40 percent of the population is of concern but are treated
differently by law from ethnic Malays is a reason for concern.
As long as the government carves out special privileges for Muslim Ethnic Malays I don't see a very bright future for foreigners in Malaysia
Think of a home as a 30 year investment Then ask yourself...when Malaysia gets to the point where it doens't need to rely on investment from "My Second Home"
foreigners and a Malay wants the property your house sits on.....what then?? Could the government apply a new law that gives ethnic Malays first rights to
property ownership over foreigners?? In 1970 about 150 american retirees bought beachfront property in Baja Mexico and built their dreamhomes. Later the legal
claim to the land they thought they had purchased legally was challenged and they ended up being evicted....they lost everything.
http://www.entrepreneur.com/tradejournals/article/131329660.html
Making an investment in a home is a long term move and it would be wise for anyone considering moving to another country just for
a lower cost of living to carefully evaluate the stability of the country, the level of corruption, religious and ethnic tolerance, and equal protection under the law.
Any one of those factors could end up costing you your investment