The programme, which was launched in 2004 in India, for attracting Indian investors to own bungalows and private resorts in Malaysia's tourism zones, has witnessed a substantial jump in 2006.
So far 490 Indians have bought bungalows and private resorts in Malaysia for about Rs 200 crore (Rs 2 billion).
The Malaysia tourism board, however, expects the number of investors to go up to 1000 by 2007. Most Indians, who have bought bungalows, are below the age group of 50 years.
Under the programme, the properties on offer in Malaysia vary from apartments and condominiums, terrace houses, bungalows in tourism zones such as beaches, near jungles and theme parks, recreational places and city centres.
The criteria to stay is a social visit pass with a multiple entry visa initially valid for a period of ten years and then renewable.
"Malaysia's stable economy, low cost of living, warm and balmy weather and political stability works in its favour. Also, Malaysia is an education destination with international schools and universities," said Manoharan, director, Malaysia Tourism.
Though initially, the 'Malaysia-my second home' campaign received lukewarm response from Indian investors, he added, "The scheme picked up steam only in later half of 2005 when the government relaxed investment rules and it became easy for people to invest money," said Manoharan.
At present, Indians below 50 years of age, who wanted to invest in Malaysian properties, are required to open a fixed deposit account of Rs 37 lakh. After a period of one year, the participant can draw up to Rs 29 lakh.
However, Indians aged above 50 years, the rule is relaxed to a fixed deposit of only Rs 18 lakh with a local bank for a minimum period of one year.
As per the Malaysian tourism scheme, each participant is allowed to purchase two units of residential properties at a minimum price of Rs 18 lakh each depending on the location of the property.
However, participants are not allowed to own a business and work in Malaysia under this programme.
