Malaysia Retirement Today

Islam is the dominant religion in Malaysia.

Thailand and the Philippines are usually the countries that many Americans think about when considering a Southeast Asian retirement destination. However, in recent years, Malaysia has been aggressively going after retirees in an attempt to make that country one of the best places to retire in the region.

Malaysia Retirement -Economy

The average income in Malaysia is about $13,200 US when adjusted for purchasing power. this is higher than the Philippines ($3,700) but still significantly lower than the USA which has an average of about $46,000. A retiree living on a modest budget will find Malaysia a good retirement destination, although perhaps not as cheap as in the Philippines.

Malaysia is considered a newly industrialized country. Manufacturing began to grow in the 1970’s, particularly in the areas of high technology and heavy industry leading to a very export oriented economy. Much of the economic growth has been driven with foreign investment from countries such as Japan. Older industries such as mining (tin), rubber and palm oil still exist but continues to decline as a percentage of national income.

For retirees, Malaysia has launched a “Malaysia, My Second Home” strategy designed to attract foreigners who are planning to retire overseas. The program grants retirees priveleges to engage in part time work, ability to invest in businesses, a long term and multiple entry visa, ability to purchase a home, and ability to import an automobile duty free. Retirees must be able to demonstrate financial ability to support themselves (about $2,500 US/month) or an initial deposit of about $40,000 .

The rapidly modernizing economy combined with the widespread use of English in urban centers (particularly among the younger urban Malaysians) helps to make the country a suitable retirement destination and minimizes culture shock.

A modern mega mall, characteristic of Malaysia's rapid economic development.

Malaysia Retirement – Food and Shopping

Food is relatively inexpensive when purchased from local wet markets and reflects the diverse cultural (Malay, Chinese, Indian and European) heritage of the region. Of course, retirees who wish to shop in more familiar settings will find supermarkets more akin to those in the United States (with correspondingly higher prices). One of the attractions is that the retiree will have a choice how to shape the quality of life when living abroad.
Other products can also be purchased either from megamalls or the local market. Access to electronics, household appliances and other goods is very good in the larger cities. Overall costs are fairly low in comparison to the United States, but slightly higher than in other Southeast Asian countries that are less developed. The country has a clothing industry and locally produced clothing is quite inexpensive.
While a very good destination for living, it’s newly industrializing status will tend to drive costs up over time in relation to other countries that are developing less quickly.

Malaysia Retirement – Healthcare

Malaysia has made major investments in healthcare, not only to service its own growing population, but to provide modern levels of healthcare to foreigners interested in Southeast Asia for healthcare. As in many other Southeast Asia retirement destinations, emphasis on medical tourism initially focused on cosmetic medical procedures. However today, the healthcare system has evolved significantly and provides internationally accredited acute care (hospital) services and development of medical services for chronic and long term care. Costs for healthcare in Malaysia could be as much as 80% cheaper than comparable medical procedures in the USA.

A European styled community for westerners.

Malaysia Retirement – Housing

Housing provides a diverse range of options for an American choosing a Malysia retirement. There are more exclusive foreigner type of settlements and lower cost settlements for the local population. Rental costs will vary from $250 per month to $1,000 per month for more exclusive and high demand areas.
Malaysia Retirement – Social and Political Environment
Malaysia is a relatively stable country from a political perspective. In times past, there were racial tensions between Malay and Chinese groups, but for the most part these have gone way.

Despite being a predominantly Muslim country, there are only few and isolated incidents related with terrorist types of groups. Overall, the population is friendly and has opened its arms towards retirees from abroad with very nice retirement packages.

As in all countries around the world, crime rates are highest in the city. When compared to the USA, the crime rate in Malaysia is low. In 2000, the homicide rate in Malaysia was 2.36 per 100,000 in contrast to a rate of 5.46 homicides per 100,000 in the USA.

A local market for a shopping alternative to malls and supermarkets.

Malaysia Retirement – Transportation and Communications

Malaysia boasts 6 international airports and a fine transportation system of roads connecting the cities within the country. One may also travel by rail or by bus between major destinations. Within the city, one can readily get around by light rail, bus, taxi, or private vehicle. Overall, for the retiree, the systems are more than adequate but for a working expatriate one may have to depend on private transportation.

Given that Malaysia is a newly industrializing country, the retiree will find easy access to modern telecommunications in the major cities. Cable based and satellite networks are available for local and international programming. Stations such as the Discovery Channel, Nikolodeon and MTV are available.

Telephone communications is available through land line and cellular phones. Like in many Asian countries, cell phone use is popular for texting as a cheap way to keep in touch with friends and family.

Internet service providers can provide access to DSL service. Historically, internet cafes operated around the clock but plans have been issued to curtail access after midnight. Other rules will require children under 12 to be accompanied by an adult. Part of these rules are being proposed due to truancy among students.

Malaysia Retirement – Summary:

Overall, although Malaysia is still a country in development it gets a thumbs up as a retirement destination due to the low cost of living and healthcare, business, and transportation infrastructure. Government policies that attempt to make Malaysia one of the best places to retire in Southeast Asia are also likely to prove attractive to Americans who might want to retire abroad. Economically, the country is one of the top performers in Southeast Asia and should provide a retiree with a stable and progressive retirement destination.

Retiree’s Ranking of a Malaysia Retirement: 5.0/5.0

(Photos by: Asli Jamil, Olimohd, Shaolin Tiger and Coba Tra)

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