Best Places to Retire: Kuala Lumpur, Malaysia and Beyond
GraySpirit | Dec 07, 2009 | Comments 10
Kuala Lumpur's Zoo and Aquarium are memorable visits.
Kuala Lumpur is the capital of Malaysia and is emerging as one of the best places to retire in Southeast Asia. It has a population of nearly 2 million, but has grown into a larger metropolis of over 7 million inhabitants. Its rich cultural heritage combined with a low cost of living and modern infrastructure truly makes it one of the best places to retire in Asia, if not the world.
Today, Kuala Lumpur is known for its affordable first class tourist accommodations, international culinary options, impressive architectural attractions such as the Petronas Twin Towers, and world class shopping malls. Combined with an aggressive strategy for attracting retirees and expatriates, Kuala Lumpur has become a first class retirement destination.
Kuala Lumpur originally emerged as a small mining town on the west coast of the Malaysian peninsula. The mining of tin gave birth to the city, but although the tin industry has since declined, it has been replaced with high technology industries and a high powered business and finance sector that are propelling the country forward as one of the newly industrializing countries in Southeast Asia.
Putrajaya Mosque reflects Islamic architecture and culture.
Malaysia Retirement: The People of Kuala Lumpur
Kuala Lumpur is a truly multicultural capital. During Europe’s Industrial Revolution, the mining of tin grew into a major economic activity for the country. Many Chinese laborers were brought into the country to fuel the expanding tin industry. Today, Chinese make up over 40% of Kuala Lumpur’s population. Another 40% of the population are Malay.
A large influx of Indian laborers during the British colonial period infused Indian culture into Kuala Lumpur, and today about 10% of the city’s population is of Indian ancestry.
In the late 1900’s when Malaysia began to emerge as a rapidly developing country built on business and finance, construction, and tourism there was once again a need to bring in labor. During this period, a large influx of workers from across Southeast Asia once again changed the country’s demographic profile. Today, nearly 10% of the city’s population are foreign residents from across Asia and the world.
Of course, these demographic changes also resulted in major changes in the country’s religious base. The predominant religion is Islam, but other significant religions in the city are Hinduism, Buddhism, Confucianism and Christianity.
Typical Kuala Lumpur supermall.
Malaysia Retirement: Activities in Kuala Lumpur
Shopping in Kuala Lumpur: the city boasts a large number of very modern supermalls serving its international population of residents. For something a little more traditional, there is no shortage of smaller local open markets as well. The Petaling Street night market is perhaps the most well known. The Central Market of Kuala Lumpus is a very popular shopping area for many of the tourists seeking that unique Malaysian gift.
Natural and Historical Activities: the Lake Gardens provides residents and tourists alike with a botanical park with an abundance of Malaysian flora and birdlife. The National Zoo and Aquarium offer insight into the country’s wildlife. The National Museum offers a historical and diverse cultural perspective of the development of Malaysia and Kuala Lumpur. The many mosques and temples of the city reveal the true diversity of the city through its Islamic, Chinese and Indian religious influences. The Jamek Mosque (Islam) and Sze Ya Temple (Chinese) are popular sites. The National Art Gallery and Islamic Arts Museum are ideal destinations for viewing the history and culture of Malaysia through its art.
Kuala Lumpur Architecture: Kuala Lumpur is just a little over 150 years old. In some parts of the city, the architecture reflects a period of British colonialism. In other areas, the architecture reflects the rise of Malaysia following independence, into a center of industry and commerce. The 88 story Petronas Towers, once the tallest building in the world, probably captures the “New Malaysia” better than any other local landmark of progress and change.
Kuala Lumpur Communities: of course, the main downtown commercial center reflects the modern Malaysia of today. However, it is still possible to experience the multicultural heritage of the country. Chinese (Chinatown), Malay (Kampung Baru) and Indian (Little India) communities still provide their own unique ethnic atmosphere.
Expatriate living in Malaysia is characterized by a great deal of cultural diversity. It is embedded in the city’s life, architecture, communities, commercial and entertainment activities. If you retire abroad to Kuala Lumpur, you will retire into a truly rich and internationalized lifestyle.
Malaysia Retirement: Amenities in Kuala Lumpur
Kuala Lumpur Transportation: From Kuala Lumpur, it is possible to travel throughout the country and to nearby countries (Singapore, Thailand) via rail transportation. In addition to the rail network, one can hop a short flight to surrounding destinations from Kuala Lumpur International airport.
Kuala Lumpur Housing: the cost of living in the city will vary depending on the type of accommodations that you desire. Natural market forces are at work here. The closer you are to the city center, the greater the demand for land and rent. As one moves further out of the city, prices begin to drop noticeably. Typical apartments are a basic two bedroom, living room and kitchen units.
Kuala Lumpur Healthcare: the larger hospitals in Kuala Lumpur are modern and equipped with state of the art facilities that are regulated by a national Malaysian medical accrediting body. Some of the top of the line private hospitals serve a medical tourism function primarily. If you retire abroad to Kuala Lumpur, you will have ready access to modern medical care.
Petronas Towers in the distance - once the tallest building in the world.
Malaysia Retirement: Beyond Kuala Lumpur
Beyond Kuala Lumpur, other possible retirement destinations include Georgetown, which is the capital of Penang. Its population is about 200,000 – making for expatriate living in a smaller urban setting.
Subang Jaya is a small city in Petaling with a population of about 1,000,000. It’s medium size provides modern shopping, education, and commercial activities for the Malaysian expatriate.
Kota Kinabalu has a population of 600,000 and is the capital of Sabah. Unlike the other cities mentioned, Kota Kinabalu is found on the island half of Malaysia. Despite its distance from Kuala Lumpur, expatriate living in this city still provides a wide range of convenient amenities that an expatriate would want – whether its medical, shopping, housing or entertainment.
Whether on the Asian continent or on the island half of Malaysia, expatriate living will tend to be affordable but without any major compromises to the types of amenities that a modern expatriate might want.
Malaysia Retirement: Kuala Lumpur Summary
Kuala Lumpur is a young and rapidly modernizing city in Southeast Asia. The country of Malaysia has bent over backwards to attract expatriates to their country. Kuala Lumpur hosts a large resident population of foreign workers and expatriates, and is a multicultural city in its own right. Given the city’s economic progress and friendly policies towards expatriates who wish to retire abroad, Kuala Lumpur is definitely one of the best places to retire today.
(photos by: Mejmankani, Meelin, PaulMT, Alfa Domino)
Popularity: 32% [?]
Filed Under: Featured • Southeast Asia
1. ENTRY REQUIREMENTS FOR MAIN APPLICANTS – SUBMISSION
1.1 Applicants need to show their financial capability to support
themselves in Malaysia whilst on the programme and it is advisable to submit
as much proof of your financial worth as possible to strengthen your chances
for approval.
1.2 Upon submission, applicants below 50 years of age should show proof of
liquid assets of RM500,000 and a monthly income of RM 10,000 per month.
1.3 Upon submission, applicants aged 50 and above should show proof of
liquid assets of RM 350,000 and proof of monthly income of RM10,000. They
may also show proof of government-approved pension funds of RM 10,000 per
month.
1.4 Applicants who have bought and paid for houses costing at least RM 1
million qualify to place a lower fixed deposit when approved on the
programme.
1.5 The entry requirements are to be provided by the main applicants only.
2. CRITERIA – upon conditional approval
Four criteria – financial, medical report, medical insurance, security
bond
2.1 Financial – Fixed Deposits
i) Upon conditional approval, applicants aged below 50 years are required to
place a Fixed Deposit (FD) of RM300, 000 in any bank or financial
institution in Malaysia. Participants may, with prior approval from the
Ministry of Tourism, withdraw up to RM150, 000 for house purchase, medical
expenses or children’s education, business and investment after one year on
the programme. From the second year, they are required to ensure a minimum
balance of RM 150,000 in fixed deposits until they exit the programme.
Should they terminate the programme earlier, they may withdraw all the FD as
well as any interest earned.
ii) Upon conditional approval, applicants who are 50 and above are required
to place a Fixed Deposit of RM150,000 in any bank or financial institution
in Malaysia. Applicants who are receiving government pensions or
government-approved pensions that are equivalent to RM 10,000 a month may
ask for a waiver of the fixed deposit criterion. Participants may, with
prior approval from the Ministry of Tourism, withdraw up to RM50, 000 for
house purchase, medical expenses or children’s education, business and
investment after one year on the programme. From the second year, they are
required to ensure a minimum balance of RM 100,000 in fixed deposits until
they exit the programme. Should they terminate the programme earlier, they
may withdraw all the FD as well as any interest earned.
iii) New applicants who have purchased residential property costing a
minimum of RM 1 million may maintain an FD placement of only RM 150,000
(instead of RM300,000 for below 50 years category,) or RM 100,000 (instead
of RM150, 000 for 50 and above category). This is on condition that they
have fully paid and have the property titles and grants.
2.2 Medical report: medical report from any private hospital or registered
clinic in Malaysia is to be submitted.
2.3 Medical insurance: applicants will be required to purchase medical
insurance policy. International insurance policies which are recognised in
Malaysia are acceptable.
2.4 Security bond: applicants will be required to prepare a security bond in
the form of cash, money order or bank draft for the main applicant. The
amount for each nationality is listed in the “MM2H Application Form” ranging
from RM 200 to RM3,500 per person. The security bond form is to be stamped
at any income tax office and the stamp fee is RM10 per security bond.
3. INCENTIVES
Incentives include accordance of renewable multiple-entry social visit pass
for 10 years, tax-exempt import of one personal vehicle or tax-free purchase
of locally-assembled car, purchase of residential properties priced above RM
500,000 per unit ( depending on the location and state respectively) , 5 %
real property gains tax on profits made from house sale, tax- exempt income
from abroad, permission to bring in a domestic helper and opportunity to be
involved in business and investment.
4. STAGES IN MM2H APPLICATION
MM2H applications may be submitted by individual applicants in person or by
mail to MM2H Centre in Kuala Lumpur OR through licensed MM2H agents listed
on the “Licensing” page of our website.
4.1 Pre-submission/submission : application for social visit pass ( 4
working weeks)
Relevant documents related to the MM2H application are attached, Immigration
FORM IM 12, MM2H application form, security bond fees, guidelines and health
declaration form RB I are attached. Please comply with all the guidelines
listed for new applications, to avoid unnecessary processing delay. Copies
of marriage, birth certificates, financial and other endorsed documents need
to be submitted together with the application. Please note that only
registered marriages are eligible for MM2H application. One partner is the
main applicant whereas the spouse, parents and unmarried children below the
age of 21 may be listed as dependants. Unmarried couples are required to
submit two separate applications and fulfill the criteria separately.
Approximately 4 weeks from submission, you or your appointed agent will be
notified of the status of your application by our Immigration authorities.
If approved, you will be receiving your Letter of Conditional Approval to be
on MM2H programme. Applicants may also check the status of their
application on-line.
4.2. Letter of Conditional Approval (maximum validity 6 months)
Applicants are required to be in Malaysia within six months of the Letter of
Conditional Approval to fulfill the criteria of:
i. opening fixed deposit account in any banking institution in Malaysia
ii. undertaking medical test in any private hospital or registered clinic
iii. purchasing medical insurance policy
iv. preparing the security bond and having it stamped.
Documents related to the above are to be submitted to the Immigration
Department for final approval of MM2H status (see (4.3) below).
4.3 MULTIPLE-ENTRY SOCIAL VISIT PASS
The Immigration Department will accord the MM2H visa once your final
documents are approved, and you will be issued the renewable multiple-entry
social visit pass for ten years (or less, depending on the validity of your
passport). A visa fee of RM90.00 per year will be collected. For some
nationalities, a Journey Performed (JP) visa fee of RM500.00 may need to be
paid before the MM2H endorsement is given.
5. RESTRICTION
MM2H participants are not allowed to work whilst on MM2H programme. An
exception applies to participants aged 50 and above, who may be allowed to
work a maximum of 20 hours a week in specific sectors. Please refer to the
“incentives” page of our website for information on “working part time”.
6. OTHERS
6.1 Property purchase: please be informed that property purchase is not a
pre-requisite for participating in MM2H programme. Any foreigner may
purchase any number of residential property in Malaysia, subject to the
minimum rates established for foreigners by the different states. They
start from RM500,000 per unit for most states, from 1st January 2010. Land
is a state matter and it is important to check state laws before making any
commitment, as the minimum purchase price is not standardised between
states. We advise buying homes which are already issued with certificates
of fitness but if you intend to purchase from developers, ensure that it is
a reputable company. Also ensure that your lawyer does a thorough check
with the local land office that you have ownership rights to any property
that you are purchasing.
Profit made on the sale of property is 5% Real Property Gains Tax but
foreigners who are earning income in Malaysia for example, from rental, are
subject to Malaysian taxation laws and are required to declare their income
to the Inland Revenue Board (http://www.hasil.gov.my).
6.2 Investment/business: MM2H participants may invest or be actively
involved in business, subject however to the policies and regulations
governing a particular sector on ownership and foreign participation.
Please refer to the “incentives” page of our website on “business and
investment” and “liberalised sub sectors” for further information.
6.3 Websites : please visit our website http://www.mm2h.gov.my for
comprehensive information on MM2H programme. Some other websites/portals
which make useful reading include:
i. http://www.malaysia.gov.my : Government portal
ii. http://www.miti.gov.my : Ministry of International Trade
and Industry
iii. http://www.mida.gov.my : Malaysian Industrial Development
Authority
iii. http://www.treasury.gov.my : Ministry of Finance
iv. http://www.bankinginfo.com.my: banking reference
This city has been on several movies, because of the way the buildings look like something out of the future.
Thanks for the article.
Rhett out
I think Kota Kinabalu is a better choice
You know what? I actually agree. I kind of prefer smaller cities, but not too small.
These are some very beautiful and interesting places to visit for sure! Malaysia is definitely on my list!
Definitely Kuala Lumpur is modernize city with lots of new developments done. Good place for shoppers and you can find almost everything here. I used to live here for couple years before. Nice article.
This is such an informative site. I find it quite resourceful and have become a follower. Looking forward to reading more of your posts. Its lovely to know another fellow expat blogger..
I love malaysia, it is a nice country. Great info, but I wrote otherwise about this topic at my blog.
It’s always nice to read about Malaysia. Malaysia’s culture and tradition should be treasured and preserved by its people. I would love to retire in a country that is full with beauty.
Excellent Information . Thank you for a great blog. i will recommend you often!