Government initiatives to attract retired migrants: An analysis of Malaysia's My Second Home (MM2H) programme

Abstract

International residential retirement programmes as a policy tool to attract mobile retirees have thus far been under-studied. Malaysia's programme that is nearly three decades old was investigated. Drawing data from interviews and secondary data, it charts the evolutionary changes that the programme underwent. The latest iteration signifies an attempt to target wealthier retirees, no longer the mass market. Using the Rowles Watkins Model as the theoretical lense, it points out that Malaysia's current policy direction, whether by design or otherwise, is sensible as it ensures that Malaysia avoids reaching the saturation stage whereby the disbenefits outweigh the benefits. The paper concludes by recommending certain changes, some of which can be implemented without having to wait for the next iteration. Other destination countries can draw lessons from Malaysia's foreign residential retirement initiative, in particular the initial effort to gain popularity and subsequent use in moderation to stimulate economic growth.