It seems that people prefer Malaysia to the United States or Western European countries to settle after their retirement. According to the ratings prepared by the international survey authorities, Malaysia ranked sixth for the year 2016. Among a comprehensive list of reasons, a most salient characteristic is the cost of living. It is much more affordable compared to what is prevalent in advanced countries. Given the clause that the foreign pension would reduce the amount of social benefit offered by the US, many expatriates in the US are migrating to Malaysia. Similarly, the high cost of medical services in the US, UK, Japan and Singapore is forcing people to seek greener pastures.

What is the fundamental reality?

Let’s try to understand the situation closely. The cost of living in Malaysia is lower than in its neighbor Singapore. However, there are exceptions. Malaysia has imposed huge taxes on luxury goods, cigarettes and alcoholic products, thus increasing their prices at multiple levels.

  • Accommodation cost: When considering buying accommodation, a myriad of options in the form of condos, studio apartments, penthouses, bungalows appear on the list of real estate properties displayed on property portals. Depending on what you choose, the price would be different (obviously). However, there are some additional points to consider such as location, available amenities, neighborhood, and of course, the reputation of the builder. Compared to the price per square foot of accommodation in Hong Kong or Singapore, the price set in Malaysia is 7 times lower. Apart from this benefit, expats retiring in Malaysia and holding MM2H visas can purchase apartments whose prices have been set differently by individual states. The good news is that state governments set minimum accommodation prices for foreigners at RM500,000.
  • When it comes to rental accommodation in Malaysia, a 2-bedroom condo costs RM 4,500 per month in an upscale Kuala Lumpur settlement. However, in Georgetown, you can find the same rental accommodation for half the price.

  • Cost of the meal: Aside from the fact that Malaysian delicacies are known for their succulent flavors, their prices are also very affordable. Even a full meal at an Italian restaurant would rarely cross RM 90, giving you an idea of ​​what the price might be at local restaurants. It is not more than 70 RM (in most cases). However, be willing to pay more for meals accompanied by alcoholic beverages.

  • Cost of medical care: According to the WHO report on national health care standards, Malaysia is ranked 50. There are public and private health facilities in Kuala Lumpur. As most hospitals are equipped with advanced medical facilities and hired competent doctors and nurses, people from all over the world come here to take advantage of the best medical services (in fact Malaysia is famous for medical tourism). Super specialty health centers are MS ISO9002 certified.

Consultation fees for doctors in private health centers could be as low as US $ 5. However, visiting a specialist could cost US $ 30. International medical insurance covers up to RM350,000 for a comparatively premium amount. lower than what people must pay in their home countries.

Those who do not want to compromise on their lifestyle standards but want to save money should opt for retirement in Malaysia. And before making decisions, they should do a thorough research on the available options.

NB: – 1 RM = 0.23 USD