Retiring in Malaysia: A Step-by-Step Guide for Foreigners

Malaysia might not be the first place you think of when looking for a place to retire. Being a Muslim country, you may think that the country lacks the entertainment you need to enjoy your life in retirement.

In fact, Malaysia is a great place to retire. And it’s popular too. Of course, it may not have as many entertainment options as Thailand or the Philippines, but there are places where you can hang out and enjoy your life at night.

In addition to that, the overall infrastructure and healthcare system in Malaysia are good. It’s also easier to blend into life here since Malaysian culture is diverse and many people can speak English.

In this article, I am going to guide you through the whole process of retiring in Malaysia by showing you the pros and cons of retiring here, visa options, and what you need to do to settle in smoothly.

Why Retiring in Malaysia

Here are some of the top reasons why you might want to retire in Malaysia.

Quality of Life

Malaysia offers a comfortable life at a relatively affordable price. While it’s not the cheapest place to retire in Southeast Asia (Thailand and the Philippines tend to be more budget-friendly), it’s still much more affordable than most Western countries.

You can live quite well in Malaysia on a budget of around US$1,500 per month. With this, you can rent a nice condo, eat out regularly, and enjoy a good mix of conveniences and modern amenities.

If you’re used to having extra help around the house, it’s possible to hire a live-in nanny or domestic helper for approximately US$700 per month. Many retirees find this significantly enhances their day-to-day comfort and allows them to focus more on enjoying life.

In addition to affordability, Malaysia stands out for its modern infrastructure, efficient healthcare system, and relaxed lifestyle, especially in major cities like Kuala Lumpur. We’ll dive deeper into these areas in the next few sections.

Related articles:

• Cost of Living in Thailand as an Expat: How Much Do You Need Per Month?
• How Much is The Average Cost of Living in The Philippines

Infrastructure

Malaysia’s infrastructure is among the best in Southeast Asia. Kuala Lumpur, the capital city, is a modern metropolis. You’ll find fast internet, stable electricity, clean water, and a reliable public transportation system.

The city’s rail network is extensive and covers key districts and suburbs, making it easy to get around without needing to drive.

Grab, the ride-hailing app used throughout Southeast Asia, was originally developed in Malaysia. It was first launched as “MyTeksi” before expanding regionally. Today, Grab is widely used across the country, making it convenient and affordable to get a ride whenever you need one.

Healthcare

Malaysia’s healthcare system is another strong point for retirees. Private hospitals offer high-quality treatment at much lower costs than in Western countries.

You can often see a doctor the same day, get lab tests done, and receive a diagnosis without long waiting times. Both general practitioners and specialists are accessible and affordable, and you usually don’t need a referral to see a specialist.

Expats often speak highly of the healthcare system in Malaysia, especially the quality of care, up-to-date medical equipment, and professionalism of medical staff. Major cities like Kuala Lumpur, Penang, and Johor Bahru have international-standard hospitals that regularly serve foreign residents.

Language

One of the best parts about retiring in Malaysia is the language. English is widely spoken, especially among the younger generation and in urban areas.

Because English is part of the national school curriculum, many locals, including service staff and professionals, can communicate comfortably. This makes daily interactions like visiting a doctor, buying property, or handling banking matters much easier than in many other countries.

Most legal and official documents are available in English, which removes a lot of the barriers you might face elsewhere.

Community

The retirement scene in Malaysia is a bit different from its neighbors. In Thailand or the Philippines, most expats retire after 50. But in Malaysia, you’ll find more early retirees, including people in their 30s and 40s.

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Because of this, the expat community is generally younger and more active. People here tend to be more engaged, and social circles can feel closer and more supportive.

Since the financial requirements for Malaysia’s retirement visa are higher than those in many neighboring countries, the people you meet tend to be financially stable. Many don’t rely solely on pensions but have other ways to generate income.

Challenges of Retiring in Malaysia

While Malaysia is a great place to retire, it does come with a few challenges you should be aware of before making the move.

Visa

Visa is among the biggest challenges for retirees in Malaysia for two main reasons:

• The main visa for retirees in Malaysia is the Malaysia My Second Home (MM2H) program. It comes with high financial requirements, and many don’t have that much money.
• Malaysia does not offer a path to permanent residency or citizenship through retirement.

The good news is that there’s no age requirement. As long as you can meet the financial criteria, you can apply, whether you’re in your 30s or 70s.

You can find out more in the section below.

Weather

Malaysia has a tropical climate. It is hot and humid all year round, so you might sweat a lot throughout much of the year. During the monsoon seasons, from May to September or November to March (depending on where you are), it can rain heavily, sometimes followed by flash floods, even in a city like Kuala Lumpur.

Air Pollution

One issue that affects Malaysia periodically is air pollution caused by haze, which often comes from forest fires in Indonesia. This typically happens during the dry season, around August and September.

Air quality during this time can drop significantly, particularly in cities like Kuala Lumpur and Johor Bahru. On bad days, the Air Quality Index (AQI) can exceed 150, which is considered unhealthy for most people. 

Pets

Malaysia is not a particularly pet-friendly country, especially if you’re bringing a dog. You might find the local attitude toward dogs discouraging. In many places, dogs are not treated with the same affection or acceptance as in other countries.

While some parks and neighborhoods are dog-friendly, they’re limited. 

In addition, bringing a pet into Malaysia involves strict and expensive procedures, including quarantine and import permits. 

Nightlife

Malaysia’s nightlife is more limited compared to countries like Thailand. While drinking alcohol is legal, it’s strictly regulated. You can drink in licensed establishments like in a bar or restaurant. Public drinking is not allowed, and drinking culture isn’t widely embraced.

There are still bars and nightlife options, especially in Kuala Lumpur and Penang, but they’re fewer and more subdued. If you’re looking for a place with a good party scene, Malaysia might not be the right fit.

Cost of Retiring in Malaysia

One of the main reasons expats choose Malaysia is the low cost of living. You can retire comfortably with a budget of around US$1,500 per month (RM6,500) in cities like Kuala Lumpur or Penang.

Here’s a rough breakdown of average monthly expenses:

• Rent: US$500
• Food: US$500
• Transportation: US$80
• Utilities: US$50
• Personal Expenses: US$370
  

These numbers reflect life in two of the most expensive cities in Malaysia. If you choose to retire in a smaller town like Ipoh or Melaka, your monthly costs can drop even further.

Find out more: Cost of Living in Malaysia: How Much Do Expats Need Per Month?

Where to Retire

Malaysia’s geography is quite unique, as the country is divided into two distinct regions: West Malaysia and East Malaysia.

West Malaysia, also known as Peninsular Malaysia, is the more developed part of the country. It borders Thailand and Singapore and is home to major cities like Kuala Lumpur, Penang, and Malacca. This side of the country has modern infrastructure, better connectivity, and more amenities for expats.

East Malaysia, on the other hand, lies on the island of Borneo, sharing space with Brunei and Indonesia. It’s known for nature, forests, and wildlife. Urban development is more limited here, but you’ll find a slower pace of life and access to beautiful natural surroundings.

Most retirees choose to settle in West Malaysia, especially in Kuala Lumpur and Penang. However, East Malaysia is becoming more popular among those looking for a quieter, nature-focused lifestyle.

Here are some popular cities to consider if you’re planning to retire in Malaysia:

Kuala Lumpur

The capital and largest city in Malaysia. Kuala Lumpur has everything you need: modern hospitals, international schools, high-end shopping malls, a wide range of cuisines, and reliable public transport.

It’s also the most expensive city in Malaysia, but if you prefer city life with easy access to everything, it’s a top choice.

Penang

Penang is a small island with a strong expat presence. The lifestyle is more laid-back and peaceful compared to Kuala Lumpur, and many retirees love it for its charm and manageable size.

It’s easy to get around, has a good public healthcare system, and is known for medical tourism. The island’s capital, George Town, is a UNESCO World Heritage Site with a mix of colonial and modern architecture.

Kuching

Located in East Malaysia, Kuching is the capital of Sarawak. It’s one of the more urbanized cities on the Borneo side, with good infrastructure, low cost of living, and a calm lifestyle.

Kuching is also notable because it offers a state-specific MM2H visa (S-MM2H) with lower financial requirements, making it an attractive option for retirees.

Taiping

If you’re looking for a truly peaceful and green retirement, Taiping might be the right place. It’s a quiet town known for its parks, clean air, and natural beauty. Taiping has been recognized as one of the top sustainable cities in the world, and it’s ideal for those who want to live close to nature.

While it doesn’t have the modern amenities of a large city, it offers a slow-paced and stress-free environment.

Preparing for Relocation

If you’re planning to retire in Malaysia, there are a few important things to prepare. The first and most crucial step is sorting out your visa.

Visa

While Malaysia doesn’t actually have a specific visa for retirees, it has a visa program called Malaysia My Second Home, or MM2H for short. It’s the main visa route for retirees. Some may even refer to it as a retiree visa.

Since it isn’t a retiree visa, there’s no strict age requirement. You can apply for certain MM2H options as early as age 21 or 25, depending on the type. This makes Malaysia popular among early retirees.

There are four main MM2H options you can choose from:

• Platinum
• Gold
• Silver
• SFZ (Special Finance Zone)
  

Each option has different financial requirements, but in general, there are two main conditions across all types:

1. You must place a fixed deposit in a Malaysian bank, such as Maybank or HSBC. You can withdraw up to 50% of it later to pay for medical, education, or tourism expenses or to purchase property.
   
2. You must buy a property in Malaysia and hold it for at least 10 years. The minimum purchase amount depends on the visa type and the state where the property is located.
   

Let’s take a look at three of the most popular and accessible MM2H options:

S-MM2H (Sarawak)

• Fixed deposit: RM150,000 (~US$35,000)
• Property purchase: Minimum RM600,000, and the property must be in Sarawak
• Visa validity: 10 years, renewable

SFZ (Special Finance Zone)

• Fixed deposit: US$65,000 (or US$32,000 if you’re over 50)
  
• Property purchase: Minimum RM500,000, and the property must be in Forest City
  
• Visa validity: 5 years, renewable
  

Silver Program

• Fixed deposit: US$150,000
  
• Property purchase: Minimum RM600,000 (varies by state)
  
• Visa validity: 5 years, renewable

Other requirements for all types of MM2H visas include:

• A passport with at least 18 months of validity
• Letter of intent (prepared by your agent)
• Health insurance (if you are younger than 60 years old)
• Medical report

The Gold and Platinum options offer longer visa terms and some extra benefits, but they come with higher financial thresholds.

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A few things to know about MM2H:

• You must apply through an authorized agent This makes the program more expensive but the process easier, as the agent handles most of the paperwork. Just make sure to choose one who isn’t pushy about property deals. Agent fee is normally in the range of MYR 40,000 to MYR 70,000.
• You can bring your legal spouse and dependent children under the age of 35. Keep in mind that same-sex marriage isn’t legally recognized, so partners in same-sex relationships aren’t eligible under the dependent rules.
• If you are younger than 50 years old, you need to stay in Malaysia at least 90 days a year

Whichever MM2H path you choose, it’s a good idea to start the visa process early. Because everything goes through an agent, you won’t need to deal with the government directly, but you do need to gather all your documents and prepare your funds in advance.

Paperwork

While preparing for your MM2H visa, there are certain documents that you should keep them organized and easily accessible. You’ll likely need to present them from time to time, especially when dealing with immigration, banks, or property-related matters.

Here’s what you should prepare:

• MM2H Visa: Keep both a printed and digital copy of your visa approval.
  
• Valid Passport: Make sure your passport has at least 18 months left. It’s required for the MM2H visa application.
  
• Return Flight Ticket: Depending on your visa status, immigration may ask to see proof of onward travel when you arrive in Malaysia.
  
• Additional Copies of:
  
  • Birth certificate
    
  • Marriage certificate (if applicable)
    
  • Academic records (if you or your dependents are enrolling in school)
    

Tip: Having both physical copies and scanned backups of these documents will save you time and hassle later on. It’s a good idea to upload these documents to a cloud storage service like Google Drive or Dropbox so you can access it whenever needed.

Flights

Talk with your MM2H visa agent and get their recommendation about your visa processing time, which can take 3–6 months.

Once you have an estimated timeline, you can start booking your flights. It’s recommended to book a few months in advance and avoid travel during long holidays such as Chinese New Year or Hari Raya. Otherwise, the airport is going to be full of people.

Also, check which airport is closest to the city where you plan to retire. Two most popular airports include:

• Kuala Lumpur International Airport (KLIA): If you are planning to retire in West Malaysia, such as Kuala Lumpur, in many cases, you will first need to fly to Kuala Lumpur International Airport (KLIA), the country’s main international airport, and then make a transit to your destination.
• Kuching International Airport: If you’re planning to retire in East Malaysia, such as in Kuching, book your flight to Kuching International Airport.

Other major international airports in Malaysia include:

• Penang International Airport (Pen)
• Langkawi International Airport (Kedah)
• Senai International Airport (Johor Bahru)
• Kota Kinabalu International Airport (Sabah)

Planning What to Ship

Before moving to Malaysia, decide whether you want to bring a few essentials or relocate larger household items. You can choose between cargo boxes (suitable for smaller items like clothes, books, or kitchenware) or a full container if you’re planning to ship furniture, appliances, or bulkier items.

When it comes to shipping, air freight is faster but more expensive, while sea freight is the more affordable option if you’re not in a rush.

Several international movers offer door-to-door relocation to Malaysia. It’s a good idea to contact a few companies and get quotes based on what you plan to bring.

Tip: If you’re moving under the MM2H program, check with your shipping company and agent if there are any tax exemptions or allowances for bringing in personal items. Malaysia doesn’t waive customs duty for MM2H holders by default, but some exceptions may apply depending on the items and their declared value.

What to Bring

As an MM2H visa holder, you can bring used household items to Malaysia without having to pay tax. I recommend bringing large-sized clothing, as it can be hard to find here.

Also, there are a few things you should keep in mind:

• Malaysia is hot and humid, so you don’t need any winter clothing at all.
  
• If you want to ship your furniture, make sure it’s suitable for a hot climate.
  
• If you love to cook and have quality kitchenware, bring it.
  
• If it’s an electronic appliance, think twice. Malaysia uses 240V.
  

Here’s a list of items that you MUST NOT bring to Malaysia under any circumstances:

• Pornographic products
  
• Drugs
  
• Firearms
  

You can check the Malaysia Customs website for a full list of restricted items.

When it comes to finding a shipper, most people use sea shipping. Malaysia is a maritime country with many ports, making it even more convenient.

You can use this form to quickly find a shipper.

Settling in Malaysia

After you secure your visa, here’s what you need to do to settle yourself in Malaysia.

Property

A majority of retirees in Malaysia buy a property here since it’s one of the main requirements for getting the MM2H visa.

Before buying a property, there are a few things you should keep in mind:

• Check the minimum requirement of your MM2H visa type
  
• Check the minimum requirement of your state, since it can be different from the visa
  
• Check other requirements. For example, if you get the SFZ MM2H visa, you need to buy from a property developer only
  

You can check with your agent, as they should have the latest requirements for both your MM2H visa type and the state where you plan to buy.

Also, you need to buy a property after getting the MM2H visa. In the meantime, you can use PropertyGuru or iProperty to search for a property in advance.

You can also ask for a list of properties from your visa agent too.

Bank

Once you arrive in Malaysia, you should open a bank account and place your fixed deposit there. The process is simple, as they mainly need to see your MM2H approval letter.

While you can open an account with any local bank in Malaysia, Maybank and HSBC are popular among retirees.

After that, you can use your Malaysian bank to set up your e-wallet account (cashless payment is huge in Malaysia) and send your money from overseas here.

*Important: Malaysia has strict financial regulations and won’t allow you to open a bank account with a tourist visa. You can only open a local bank account after you have the MM2H visa.

SIM Card

There are three main SIM card providers in Malaysia: Maxis, Celcom, and U-Mobile.

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Here are the main differences:

• CelcomDigi has a wide range of coverage and is recommended if you live in a small city, especially in East Malaysia.
  
• Maxis has many unlimited plans available at a good price.
  
• U-Mobile, on the other hand, focuses on budget plans. It’s good if you don’t use a lot of mobile internet.
  

You can go with their monthly plans, as they often come with the best deals.

Health

In Malaysia, public hospitals are mainly catered to Malaysians. While expats can visit them, they pay a higher price than locals. Because of this, the majority of expats in Malaysia simply visit private hospitals.

While they are more expensive than public hospitals, the cost is still very affordable. You can expect to pay around RM200 (US$42) to RM400 (US$85) for a doctor visit, even at a premium private hospital in Kuala Lumpur.

If you visit a regular clinic, it can cost less than half that amount.

Like most countries, top hospitals are found in the capital city, Kuala Lumpur.

Top hospitals in Malaysia include:

• Gleneagles Hospital Kuala Lumpur
• Sunway Medical Centre
• Pantai Hospital Kuala Lumpur
  

All of these hospitals are regularly listed among the top hospitals in Asia.

When it comes to health insurance, many people buy local insurance if it’s required by their visa, which is sufficient for visiting a standard private hospital.

While retirees over 60 years old don’t need health insurance as part of their visa, it’s still recommended to have one. If you’re on a budget, you can opt for local insurance. On the other hand, if you want international coverage and a plan that covers you abroad, it’s better to get international insurance.

Cigna Global has a good plan for retirees.

You can read our articles on health insurance in Malaysia to find out more.

Utilities

You can easily install water and electricity in your property by simply visiting your local authorities. Please note that if you bought a used property, you need to make sure the previous property owner paid all of the bills. Otherwise, you may not be able to transfer the utilities into your name.

When it comes to home internet, you can choose the same providers as your SIM card. Maxis and CelcomDigi offer internet packages that include home internet, mobile internet, and mobile calls at a discounted price.

Tax

Another great thing about retiring in Malaysia is the tax. As an MM2H visa holder, you do not need to pay Malaysian income tax on money that you bring into Malaysia, such as your pension.

Malaysian Culture

One of the great things about retiring in Malaysia is the culture.
Since culture in Malaysia is diverse, people generally respect different cultures and ways of life. This makes it easy for you to settle in without facing major cultural issues.

Malaysians are usually warm, friendly, and welcoming. They’re also very family-oriented and tend to love children.

One thing that surprises many expats is how multilingual Malaysians are. Bilingual people are common, and some are trilingual. A majority of people in Malaysia can speak English and Malay. Many Chinese Malaysians speak Mandarin too. Some Malaysians even speak Bahasa Indonesia.

This means you don’t need to learn a new language to live comfortably in Malaysia. That said, learning some basic Malay can still be helpful in daily interactions and is always appreciated by locals.

Retiring in Malaysia vs Other Countries

In addition to Malaysia, Thailand and the Philippines are other top retirement destinations in Asia. Below is a side-by-side comparison of important factors to help you choose the right country.

Please note that this is totally based on our opinion. The best way to find out is still to go there personally and live for a few months. Nothing is better than seeing it with your own eyes.

Malaysia vs Thailand

Malaysia is similar to Thailand in many regards. Both countries have similar levels of infrastructure and healthcare quality. The cost of living is also similar.

What Malaysia Wins:

• Language: Most people in Malaysia can speak English. On the other hand, many people in Thailand can’t speak English, especially in rural areas.
  
• Infrastructure: The overall infrastructure in Malaysia is slightly better than in Thailand. For example, rail transportation in Malaysia is better than in Thailand.
  
• Pollution: Thailand has a problem with air pollution, especially during the burning season. While Malaysia still has it, the overall problem is less severe.
  
• Culture: Malaysia respects diverse cultures more than Thailand.
  

What Thailand Wins:

• Visa: Thailand’s visas are better than Malaysia’s. They have fewer financial requirements, and you can upgrade to permanent residence later on.
  
• Things to do: There are more things to do in Thailand than in Malaysia.
  
• Food: Food and drinks in Thailand are more diverse.
  
• Beach: Thailand’s beaches are more beautiful and have more facilities. On the other hand, beaches in Malaysia are more laid-back.
  

Comparable:

• Cost of living
  
• Healthcare
  

In short:

If you can get a visa and want to live a simple lifestyle without having to adjust yourself much, Malaysia can be a better option.

On the other hand, there are more things to do in Thailand.

Malaysia vs Philippines

There’s quite a difference in lifestyle between Malaysia and the Philippines. For example, Malaysia has better infrastructure overall than the Philippines, but life in the Philippines can be more laid-back, and English is widely spoken throughout the country.

What Malaysia Wins:

• Infrastructure: Being an island country, the Philippines has some infrastructure problems. For example, there’s a lack of public transportation and occasional blackouts in many areas.
  
• Healthcare: The overall healthcare system in Malaysia is better than in the Philippines. Hospitals are better equipped, and it’s easier to find quality medical facilities.
  
• Safety: The general level of safety in Malaysia is better than in the Philippines.
  

What the Philippines Wins:

• Visa: The retirement visa in the Philippines is much easier to get than in Malaysia.
  
• Cost of Living: The overall cost of living in the Philippines is lower than in Malaysia.
  
• Social Life: Malaysians are more conservative. On the other hand, Filipinos are more socially open.
  
• Beach Towns: There are more great beach towns to live in the Philippines than in Malaysia.
  

In short:

It’s better to live in Malaysia if you want a country with good infrastructure and quality healthcare.

If you are on a budget or want to live in a beach town, the Philippines can be a better option.

Ready to Retire in Malaysia?

If you are ready to retire in Malaysia, the very first thing you should do is get in touch with a licensed visa agent in Malaysia to start processing your visa, which can take 3–5 months.

While you are waiting for your visa to be processed, it’s time to start packing and contacting a moving company to move your belongings to Malaysia. This is also a good time to take care of everything else needed for a smooth retirement such as informing your local banks about your relocation, forwarding your mail to a trusted friend so your important mail won’t get lost, and telling your friends about your move.

There will be many things to check off your list.

And once you are in Malaysia, don’t forget to join your local communities. At the very least, join a Facebook community in your city. It will be a valuable source of information when it comes to finding local service providers. Word of mouth is still key to finding good services in Malaysia.

Happy retirement 🙂