Retiring in Malaysia

Retirement in Malaysia can be an attractive option for many people, and there are plenty of Europeans and Americans living there.

The reasons are as follows:

1. Cost of living: The cost of living in Malaysia is generally lower than in many Western countries, which can make it an attractive option for retirees. Housing, food, and transportation costs are typically lower in Malaysia than in many developed countries. According to the research done by numbo.com of 2023, the cost of living of Malaysia is ranked 40th cheapest country. Especially the fuel price, which is the cheapest compared to neighbouring countries in Southeast Asia.
2. Climate: Malaysia has a tropical climate, with temperatures ranging from 21°C to 32°C throughout the year. The climate can be a major draw for retirees seeking a warm, sunny environment.
3. Healthcare: Malaysia has a good standard of healthcare, with both public and private healthcare facilities available. Medical costs in Malaysia are generally lower than in many Western countries. Foreign retirees can only access to private hospitals and clinics, but the standard is high and the insurance fee is relatively low.
4. Culture and lifestyle: Malaysia is a muslim country, but it is also a diverse country with a rich cultural heritage, and retirees can enjoy exploring the country’s history, food, and natural beauty. There are also many social activities and events for retirees to participate in.
5. Language: The official language of Malaysia is Malay, but English and Chinese are widely spoken, especially in urban areas. This can make it easier for retirees to navigate daily life and communicate with locals.

How do foreigners retire in Malaysia? Malaysia offers a “Malaysia My Second Home” (MM2H) program, which is a long-term visa designed for foreigners who wish to retire in Malaysia. The MM2H program allows foreigners to stay in Malaysia for up to ten years which is extendable and offers benefits such as tax exemptions for income earned outside of Malaysia.

The latest requirements of MM2H:

• Those who are younger than 50 years old must have:
• Minimum liquid assets of RM1,500,000 (USD$340000)
• Minimum offshore monthly income of RM40,000 (USD$9033)
• A fixed deposit account in Malaysia which contains at least RM1,000,000 (USD$225000)
• Individuals who are 50 years or older must have:
• Minimum liquid assets of RM1,500,000(USD$340000)
• Minimum offshore monthly income of RM40,000 (USD$9033)
• A fixed deposit account with a Malaysian bank which contains at least RM1,000,000 (USD$225000)
• For retirees, there is a requirement to show proof of receiving pension from government RM10,000 per month (USD$2250)
• Other requirements include:
• One-off personal bond payment which costs approximately RM2,000 (USD$450)
• Social pass will also require an annual payment of RM90 (USD$20)

The restrictions of MM2H:

• Requirement to stay in Malaysia for 90 days
• Unable to actively run their Malaysia business under the MM2H programme visa
• Unable to work in Malaysia

Although Malaysia is a lovely country to retire, but the requirement of MM2H visa seems to be hard to achieve. To be honest, I have plenty of choices if I can be that rich.

We can only wish Malaysia will lower its requirements of MM2H in the future, otherwise most retirees will choose Thailand, Phillipines or Vietnam instead of it.