Yes interesting. But I suspect that the greatest benefit comes from renters, not home and property buyers. There's a lot more renters of condos...by an order of magnitude than buyers.
Also fixed deposits, unless used, are mainly only good for maintaining the foreign exchange balance. What the FD giveth it can also taketh away, with interest, when the MM2H recipient leaves. Now if they allowed more withdrawals from the fixed deposit for local purchases and investment then that would free up a trapped amount of cash for spending and even encourage it.
Let's say someone with MYR 350,000 in a FD was tightly budgeted at MYR 4000/month. If they could free up that FD they might spend more freely, perhaps MYR 5000/month locally. That's 12,000 more into the local economy per year. Just restrict those withdrawals to local goods and services. That may mean more employment (maid, health assistant, house or grounds keeping) an upgrade to a more expensive apartment, a lot more local tourism, car rentals, restaurant visits, etc.