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Should I retire to Malaysia?

If you’re starting your retirement planning and asking yourself “should I retire to Malaysia?” the short answer is yes it definitely should be on your list of potential landing spots for retiring in paradise.

Malaysia, according to Wikipedia is a Southeast Asian country that has thirteen states and three federal territories, separated by the South China Sea. This country’s name is derived from the Tamil word “malai” and “ur” which means “mountain” and “city, land” respectively. Considered as one of the many countries with tropical weather that boasts beauty and biodiversity.

It is considered as the forty second most populated country in 2010 with a population increase of 1.54 percent per year. More than sixty-one percent of the population practice Islam as their religion but Hinduism, Buddhism, and Christianity are also present in the country.

If you’re asking yourself should I retire to Malaysia? There are plenty of reasons why Malaysia is considered to be one of the many countries that are great for retirees. This country offers a lot of wonderful scenery that is great for relaxation and travel. Many have their eyes set on this tropical land to be their second home when they retire since the cost of living here is much lower than in the US. Economic growth has shown the whole world that this country showcases much more than what many believe. The continued development of the country’s infrastructure is also a great selling point for retirees and expats.

Should I Retire to Malaysia? Weather

Malaysia is a country near the equator and therefore has tropical rainforest weather that most expats love or hate. The climate here can be categorized into two; rainy and sunny. It can be very erratic since two monsoon seasons affect the land. The sun usually shines part of the day and then rains in the late afternoon. Since we are talking about the weather of this country, we need to separate this in three areas; highlands, lowlands, and coastal area.

Highlands

The general rule is that the higher you are, the greater the rainfall and the cooler the climate gets. Highlands receives lots of rainfall which is why most of its area is covered in heavy forest and greenery. The Highlands is a perfect place for a relaxing tea plantation tour as well as refreshing forest tours.

One of the popular highland destinations here in Malaysia is the Cameron Highlands. Temperatures range from 22℃ or 72℉ during the day and then drops into 14℃ or 57℉ at night. The verdant views and cooler temperature of this highland have attracted tourist and retirees in the past years and continue to do so up to this day.

Lowlands

There is no water shortage to be had in this area. Lowlands often experience the same amount of rainfall and temperature as the coastline of the country. The main difference is that lowlands have higher humidity rate due to the vast vegetation. The biodiversity of this area makes it a perfect haven for different wildlife and insects. Many new species of plants and insects have been found in this area.

Resorts in this area take advantage of the greenery and continued humidity with warm weather by offering tour packages that allow people to see the abundant forest life of the country.

Coastal Area

This is divided into two regions, the east coast and west coast. Each region has a different schedule of when the monsoons affect them the most.

East Coast

During the months of April to September, the east coast enjoys sunny weather with moderate temperatures ranging from 23℃ or 73℉ up to 30℃ or 86℉ and four to twelve inches of rain per month. The months of March to October is the wettest and rainiest for this coastal area with an average rate of more than twelve inches up to twenty-seven inches of rain per month.

West Coast

The country’s capital, Kuala Lumpur is located in this area. This coastal region is more developed to entertain and cater to tourists. Beautiful mangrove swamps can also be enjoyed in this area as well as bays and mudflats. Expect heavy rains during the months of May to October which can amount to an average of seventy to ninety-eight inches per year. Kuala Lumpur usually experiences rain around four to five in the afternoon which can be very refreshing given the warm and humid weather of this region.

Should I Retire to Malaysia? Cost of living

Malaysia’s currency is called Ringgit, it has an exchange code of MYR with a local symbol of RM. To realize how low the cost of living is in Malaysia compared to the US we must first know the latest conversion rate of these currencies. As of this date, April 4, 2019, one US dollar is equivalent to four RM. Factor in the average Social Security pension payment in the US of $1,300 per month, your pension can reach a lot more places in Malaysia than in the US.

Remittances from abroad are not taxed in this country which basically means that you are living tax-free. It is estimated that the cost of living in this country is 43% lower in the US. This is especially true if you are considering living outside of Kuala Lumpur. There are, however, a few areas where it might get tricky for you.

Where should I retire? Check out this Top Ten list to start looking.

Food Cost

Food is a major commodity in one’s life. In this country, you can enjoy Malay, Chinese and Indian foods for a low cost. Western restaurants are also popping out if you want a meal closer to what you have back home. Learning where to find the best bang for your buck is the key to keeping your food cost to a minimum.

In general, the rule of buying local produce can really stave off a few bucks from your expenses. Keep in mind that imported goods are always more expensive than local ones. Visiting and buying at a local market place is a great way to save some cash. Avoid buying processed, packaged or frozen food if you can because they generally cost more.

Eating out can also be a bit of a challenge. When you keep your dining experiences in areas and establishments that are under the open air, served in open stalls or is not in an air-conditioned place, your food expense will be way much lower. Also, dining and living in larger cities is always a lot more costly.

Ask around for places that offer good food for a cheap price and maybe cook your own meal once in a while to save money. Buying fresh produce in the market is far cheaper than buying ready to eat food.

Accommodation

Foreign retirees can own property in this country but it is recommended that you rent for the first few months so that you can have a trial run to see if Malaysia can be considered as your second home. The cost of a one-bedroom apartment ranges from $220 up to $395 per month. There are three bedroom apartments available too that costs $400 up to $710 per month. Your rent will take a large chunk off your pension pay but should not be more than 30% to 40% of your income.

A website called Numbeo can be visited to see a breakdown of the cost of living in this country, together with property prices within and outside the central cities, crime rate, healthcare cost, pollution index, traffic, quality of life and travel. Head to this site to help you compute how much money you need to earn each month to cover your basic expenses and still have enough money for leisure and savings.

Household Help

The peculiar thing about this service is that you will rarely see a Malay local provide you with household help. This country employs foreigners, mostly Indonesians and Filipinos to be domestic helpers for their country. Training the helpers would be your responsibility as well as board and lodging. For Indonesian helpers, a joint bank account is a requirement for the wages to be deposited into because these helpers are not allowed to carry cash for the first two years.

Indonesians usually have a language barrier because most only speak their native tongue. They are priced at $90 per month’s salary for a full seven days a week of work. Filipinas speak English to some degree and are priced higher at around $175 per month for six days a week work.

There are more than 250,000 domestic helpers registered under the country’s government. Most of these helpers come from the nine foreign countries that Malaysia approved. A set of rules are strictly followed by these foreign employees which ensure the safety of both the employer and the household help.

Internet and Infrastructure

Malaysia has a world-class airport and a bustling city life. Roads within the main cities are well maintained. Getting around the city can be via a car or the local monorail in Kuala Lumpur (KL) and also the Light Rail Transit. Buses and taxis are available for commuters too. The constant improvement of the infrastructure made this country number two in Asia and number five around the world in infrastructure investment.

The government focused on modernizing the current infrastructure of the country, using and encouraging technological advancements to further improve the general communication and internet of the country for the past few decades. This helped the country become one of Asia’s countries that are developing in leaps and bound when it comes to infrastructure.

Internet service in this country is very good. There are plenty of providers to choose from. You choose your plan according to your needs and it usually includes a free router. This service can be a deal maker or breaker for some because the internet can also serve as an offshore income generating tool for retirees. The good thing is that this service is a fairly low cost which can set you back about $40 per month for a fast connection with unlimited usage. The only downside would be if you are living outside major cities. Service and connection can be really slow.

If you’re looking for ways to generate an income/side hustle during or before retirement read my article here.

Should I Retire to Malaysia? Is it Safe?

Theft is the most common crime in this country, especially in KL. Bags and valuable snatching has increased in major cities. Credit card fraud has also been reported and scams like people borrowing money and presenting non-existent property as collateral.

Malaysia can be considered as a moderately safe country due to the government’s non-tolerance of drug use and trafficking. Terrorist attacks are very uncommon and the homicide rate remains low at about 2.3 murder per 100,000 persons.

But taking precaution can never hurt anyone. Always be wary of your surroundings wherever you are. Never walk the streets while talking on the phone because this can attract the attention of snatchers. Avoid walking in areas where there is no proper lighting especially at night. Keep your valuables in a safe place.

Most robbery, theft, and snatchings are performed by guys riding on motorcycles so avoid crossing your bag over your body to prevent injury. There are a few cases of getting dragged behind the motorcycle.

Should I Retire to Malaysia? Homes and real estate

Owning property such as a condo unit in this place can set you back around $136 per square foot. Homes in rural areas can be purchased for about $23,000 and about $165,000 in Kuala Lumpur. Areas that are roughly an hour away from Kuala Lumpur have properties for sale that are more or less $29,193 to purchase. It is also best to keep in mind that expats are only allowed to buy properties that are priced over RM500,000 or $121,637.50.

Should you rent or buy in Malaysia then? It depends on your preference but it is generally recommended that you rent for a few months to get the feel of the country and decided if the place should be your retirement place. But before you decide on owning or renting, you must employ a Malaysian lawyer to walk you through the whole process of owning or renting.

Real estate in this country remains inexpensive especially in areas outside the major cities. In KL, most expats are there due to work and are living in gated districts that offer great security and quick access to transportation for the commute. In Penang, expats are mostly retirees that work from home or are self-employed. Most of them prefer this area over KL because it is less congested and offers better air quality.

Should I Retire to Malaysia?  Visa Process

For expats relocating to this country, owning a visa depends on where you are originally from. There are seven different categories and knowing which you belong to would greatly help you. Remember that your passport will be the first requirement for requesting a visa. Make sure that this is valid for the next six months with at least a page remaining blank for it to be honoured by the government.

Determine if your country qualifies for the visa-free entry in the country and know how long your visa-free pass lasts. It can be fourteen days up to ninety days from the time of arrival. E- Visa can be issued to nationals from Bhutan, Bangladesh, China, India, Montenegro, Myanmar, Nepal, Pakistan, Serbia, and Sri Lanka and are allowed a total of thirty days stay.

Chinese and Indians who are entering from Thailand, Singapore and Indonesia are required to obtain a visa upon arrival and is given seven days of maximum stay. Countries that require a visa to enter are needed to apply in advance through their local embassy.

Some countries have a health requirement that you need to first comply before entering Malaysia. This health requirement is the mandatory yellow fever vaccination. If you will be entering Malaysia from these countries then a medical certificate that shows you’ve been vaccinated against yellow fever is needed.

What is Malaysia My Second Home Program (MM2H)?

This is a program created by the Malaysian government to cater to foreign nationals that plan to reside in the country for longer periods of time. The requirements to qualify for this program are the following:

• Below fifty years of age with liquid assets to show amounting to $125,000 or 500,00RM and $2,500 or 10,000RM or more of monthly income.
• Above fifty years of age needs to show $87,500 or 350,000RM of liquid assets and a monthly income of $2,500 or 10,000RM or more.
• Supporting bank documents must also be presented showing three consecutive months of transaction

Once you’ve been approved for this government program you must then do the following:

• Those who fall below fifty years of age need to buy a certificate of investment from a list of prescribed Malaysian Institution amounting to $75,000 or 300,000RM. Half of the investment price can then be withdrawn after one year for the purpose of either buying a house, paying tuition or for medical emergencies. The other half will remain with the institution for the duration of participation in the program.
• Participants who are over fifty need to invest $37,500 or 150,000RM where 50,000RM is available for withdrawal. Retirees have the option to waive the 100,000RM retaining balance.
• Medical certificates are needed from a respectable clinic or hospital within Malaysia.
• Medical Insurance papers
• Pay the security bond amounting to 200RM ($48.66) if you are applying directly. You can also get help from agents for a fee, around 1,200RM ($291.93) to 10,000RM (2,432.75) depending on the service provided.

Other forms of visa are also available:

• Dependent Pass: It is issued to spouses or children of foreign employees with valid employment pass.
• Student Pass: It is issued to students who want to study in any educational institution given approval by the Ministry of Home Affairs.
• Employment Pass: Issued to foreign employees with a minimum salary of 3,000RM per month who will be working at least two years.
• Visit Pass for Temporary Employment: Issued to foreign workers with a minimum salary of 3,000RM per month that will be working for less than two years.
• Visit Pass for Professional: Issued to foreign professionals who will be working in the country for a short period of time. Examples are actors, researchers, and volunteers.
  

Check out the Link to MM2H here

Should I Retire to Malaysia? Healthcare

Major cities such as KL have world-class healthcare facilities and more advancements are on the way. Rural healthcare often is limited to the basics. Life expectancy for Malaysians is at the average age of 74. And due to Malaysia giving great importance to healthcare, a substantial amount of funding is allocated into this area.

However, for expats, public healthcare is also readily available and is very affordable. It generally costs five dollars to get checked and around thirty dollars to get treatment. Still, the majority of the expats prefer to go into private care because it is more efficient and faster.

The best hospitals in the country are found in Kuala Lumpur. One of them is named, Gleneagles Hospital and it also serves as a medical tourism institution. You can rest assured that you will be properly taken cared of if you chose to go to one of the best hospitals in this country.

Basically, Malaysia offers great healthcare and is readily available if you are in the right part of the country.

Should I Retire to Malaysia? People, Culture and Entertainment

Locals of this country can speak some English which makes it really easy to have a conversation. People, in general, are very welcoming to expats. This country has become a melting pot of not just different nationalities but also different culture due to the rich history it has with Chinese, Indians, Arabs, and Europeans.

People

People of this country is called Malays and are mostly Muslims. Other religion includes Buddhism, Hinduism, and Christianity. With that in mind, expect a mixture of cultures and beliefs from the locals. About eleven percent of the population belong to the Orang Asal or “original people” population which are mostly from the indigenous tribes of this country.

Culture

This country is famous for its artistic tradition in carving, weaving, and silversmithing. Carving of wooden masks and painting it decoratively can be seen as part of their culture and tradition when you visit museums. Women in this country weave fabrics called batik and decorate it with embroidery back in the days. Silversmithing started out with producing knives and cutters for the betel nut. Malays also craft earthenware for utilitarian purposes but later on became part of the art culture due to the vibrant colors used when decorating them.

Entertainment

Local clubs, theatres, cinemas, shopping malls, and bars are scattered in the major cities of this country. This gives you plenty to do during your stay. Weekends allow you to watch some traditional Malay theatre performances called Bansawan, there are also traditional Indian theatre shows called Nadagam and the famous shadow puppets of the Chinese Opera called Wayang Kulit all for free at the riverside amphitheater located outside of KL’s Central Market.

Attractions

The many temples situated in this country is a great attraction to see to learn about the history of Malaysia. Street food is a big thing in this country and is a very popular attraction to tourists. The Central Market in KL also is a popular attraction for shoppers that are looking for great buys at a low cost. Haggling is name of the game here.

Visiting museums also is a great activity but if you want a more modern attraction, go to the Genting Highlands to play some casino, this place is also known as the Las Vegas of Asia and since your already in the area, go visit Snow World and Ripley’s Believe It Or Not Exhibit.

To experience a bit of the European influence in Malaysia, you can head to a place called Bukit Tinggi more locally known as Little France because of its European style architecture, cobblestone pavements, cafes and street performances. Legoland in Johor is perfect for the kids and also the kid at heart to explore.

Beaches here are just amazing!  Watch the beautiful sun as it sets in the horizon. The flora and fauna of this country is a must see, therefore, nature trips should be part of your itinerary. You can start visiting the National Parks and then work your way into the hills and forest of the country for a truly wonderful experience.

Should I retire in Malaysia? – Overall

Malaysia is an exotic place full of life and culture. It is a place rich in history and a country with different beliefs. Although religion varies a lot in this country, the people that inhabit this place are very peaceful and welcoming to expats. The crime rate is low all together with a few increases in theft and snatchings. The roads are well maintained and commuting is not as troublesome.

Retirees have the option to own a house or rent an apartment because of the government’s program that is specifically designed to attract foreigners to stay longer in the country. It’s easy to get into the country especially if you are from a visa-free entry country. Since the government has spent time, effort and money on healthcare, the medical facilities are world class but still affordable.

There is plenty of places to see, shows to watch, beaches to visit and forests to explore. Sunsets in this country is a view to die for. Food is a mixture of many cuisines of Asia which you can all enjoy in this place. This multicultural and multifaceted country combines the best of a tropical country, with top-notch healthcare, low cost of living, wonderful attractions and improving infrastructure all in one. This truly is a “paradise on a budget”.