Cost of Living Guide to Retire in Malaysia for Expats

Retirement is a momentous turning point in life. It’s a time to be laid back, explore newly unchartered territories (only for the non-faint-hearted-hearted), and celebrate the fruits of your labor in your golden years.

For many Singaporeans, Malaysia stands out as an attractive retirement destination. With its close proximity, diverse culture, and affordable living, it’s no wonder that more and more Singaporeans are considering making Malaysia their second home.

Why Malaysia is an Attractive Retirement Destination

Malaysia offers a unique blend of modern amenities and rich cultural experiences. The cost of living is considerably lower than in Singapore, allowing retirees to enjoy a higher quality of life without breaking the bank. From stunning beaches to vibrant cities, Malaysia has something for everyone.

Moreover, the similarities between the warm climate and friendly locals make it easy to feel at home. The country is known for its diverse culture, with influences from Malay, Chinese, Indian, and indigenous communities. This multicultural environment creates a welcoming atmosphere for expats.

Visa and Legal Requirements

Malaysia My Second Home (MM2H) Programme

The MM2H programme is the most popular option for Singaporean retirees looking to settle in Malaysia. This programme allows foreigners to stay in Malaysia on a long-term basis, making it ideal for retirees.

Eligibility Criteria for Singaporeans

The current programme now has a tiered structure (Platinum, Gold, and Silver), and the requirements are different for each tier:

Age Requirement: The minimum age for applicants has been lowered to 25 years across all tiers, reflecting a shift away from a strict focus on retirees.

Financial Requirements:

Silver Tier: Requires a fixed deposit of USD 150,000 (approximately RM 700,000) in a Malaysian bank. The previous requirement of RM10,000 monthly income is no longer explicitly mentioned, and there is no specific liquid asset requirement.

Gold and Platinum Tiers: Require higher deposits and come with different benefits and obligations, such as mandatory property purchases in Malaysia.

Residency Requirement: Applicants are required to stay in Malaysia for at least 60 days per year, down from the previous 90 days.

Application Process and Required Documents

The application process involves several steps:

• Complete the application form.
• Submit financial documents proving your income and assets.
• Provide medical reports from a licensed doctor.
• Obtain a police clearance certificate.
• Pay the application fee.

Once approved, the MM2H visa is valid for ten years and is renewable.

Cost of Housing

Comparison of Housing Rental in Different Malaysian Cities

Housing rentals in Malaysia vary significantly depending on the city. In Kuala Lumpur, a one-bedroom apartment in the city centre can cost around RM2,500 (approximately SGD 800) per month.

In contrast, renting in Penang or Ipoh can be much cheaper, with prices starting from RM1,200 (approximately SGD 385) per month.

Renting vs. Buying Property

Many retirees opt to rent initially to get a feel for the area. Renting provides flexibility, especially if you're unsure about committing to a location. However, buying property is also an option.

Malaysia allows foreigners to purchase property, which can be a good investment for those looking to settle long-term. (Minimum allowable housing purchase prices of RM600,000, RM 1,000,000 and RM 2,000,000 for the three tiers - Platinum, Gold and Silver respectively)

Popular Areas for Singaporean Retirees

Some of the most popular areas for Singaporean retirees include:

• Kuala Lumpur: Offers a cosmopolitan hustle and bustle lifestyle with excellent amenities.
• Penang: Known for its beautiful tropical beaches, local food galore and the rich pre-war Victorian architecture and cultural heritage.
• Malacca: A historical city with a vibrant potpourri of locals with Portuguese culture.

Daily Living Expenses

Food and Groceries

The cost of food in Malaysia is relatively low. A meal at a local coffee shop can cost as little as RM10 (approximately SGD 3.20), while monthly groceries can range from RM400 to RM600 (approximately SGD 130 to SGD 195), depending on your eating habits.

Transportation

Public transportation in Malaysia is efficient and affordable. For expats and tourists, the public transportation pass is not available. Instead, you can use pay-as-you-go options like the stored value Touch 'n Go card for individual rides.

Alternatively, the MyCity passes offer unlimited light rail transport (LRT) train, mass rapid transport (MRT), monorail, bus transit (BRT) and bus rides. However, these rides are limited to daily or three-day options, and prices vary.

In Johor Bahru, , a similar MyBAS50 pass is available, but it also has the same citizenship restriction. Meanwhile, taxis and ride-sharing services are also available at reasonable rates in all city areas.

Utilities (Electricity, Water, Internet)

Monthly utility bills for a standard apartment typically range from RM200 to RM400 (approximately SGD 65 to SGD 130).

Internet services are widely available, with prices starting at RM100 (approximately SGD 32) per month. If you are thrifty, (subject to availability), your landlord can provide you with free WiFi.

Entertainment and Leisure Activities

Malaysia offers a variety of entertainment options, from shopping malls to cultural festivals. Many activities, such as visiting parks or enjoying local markets, are free or low-cost, making it easy to enjoy a vibrant lifestyle without overspending.

Healthcare Costs

Overview of Malaysian Healthcare System

Malaysia boasts a robust healthcare system, with both public and private facilities available. The quality of care is generally high, and many doctors speak English, making communication easier for expats.

Cost of Medical Insurance for Retirees

Medical insurance is essential for retirees. The cost of private health insurance varies, but retirees can expect to pay between RM2,000 and RM5,000 (approximately SGD 650 to SGD 1,600) annually, depending on coverage.

Comparison of Healthcare Costs in Singapore

Healthcare costs in Malaysia are significantly lower than in Singapore. For example, a consultation with a specialist in Malaysia may cost around RM100 (approximately SGD 32), while the same service in Singapore could be three to four times higher.

Taxation

Tax Implications for Singaporean Retirees in Malaysia

One of the advantages of retiring in Malaysia is the favourable tax environment. Malaysia does not tax foreign income, meaning that your retirement income from Singapore is generally not subject to Malaysian taxes.

Double Taxation Agreements Between Singapore and Malaysia

Singapore and Malaysia have a double taxation agreement, ensuring that retirees are not taxed on the same income in both countries. This agreement provides peace of mind and financial security for those living in Malaysia.

Banking and Finance

Opening a Malaysian Bank Account

Opening a bank account in Malaysia is straightforward. Most banks require your passport, proof of residence, and a minimum deposit. Having a local bank account simplifies transactions and currency exchanges.

Currency Exchange Considerations

The Malaysian Ringgit (MYR) is the official currency. Exchange rates can fluctuate, so it’s wise to monitor rates and consider using services that offer better rates than traditional banks.

Transferring Funds Between Singapore and Malaysia

Transferring funds is easy, but be mindful of fees. Using online transfer services can save money compared to traditional banks, which often charge high fees for international transfers.

Lifestyle and Culture

Adapting to Malaysian Culture

Adapting to Malaysian culture can be an enriching experience. The country’s diversity means there are many traditions and festivals to enjoy. Embrace local customs and try to learn a few phrases in Malay to enhance your experience.

Social Activities and Expat Communities

Malaysia has a thriving expat community, especially in cities like Kuala Lumpur and Penang. Joining clubs or social groups can help you meet new people and build a support network.

Language Considerations

While Malay is the official language, English is widely spoken, especially in urban areas. This makes it easier for Singaporeans to communicate and integrate into the local community.

Pros and Cons of Retiring in Malaysia

Advantages for Singaporean Retirees

• Low Cost of Living: Enjoy a comfortable lifestyle without the high expenses of Singapore.
• Friendly Environment: Malaysia is known for its hospitality and welcoming locals.
• Cultural Diversity: Experience a rich tapestry of cultures, foods, and traditions.

Potential Challenges and How to Overcome Them

• Cultural Adjustment: Embrace the differences and seek to understand local customs.
• Healthcare Access: While healthcare is generally good, make sure to choose locations with quality facilities.

Conclusion

Retiring in Malaysia can be an exciting and fulfilling experience for Singaporeans. With its low cost of living, vibrant culture, and welcoming communities, Malaysia offers a wonderful lifestyle in your golden years.

As you consider this significant transition, remember to research thoroughly, embrace the local culture, and connect with fellow expats. With the right preparation, Malaysia can become your ideal retirement destination, allowing you to enjoy life to the fullest.

So, why wait? Start planning your retirement in Malaysia today!