Living In Malaysia: A Guide To Moving To Malaysia As An Expat

Dreaming of a life filled with cultural diversity, mouth-watering street food, and a tropical climate? Look no further than Malaysia. Nestled in Southeast Asia, Malaysia offers a unique blend of modernity and tradition against a backdrop of lush landscapes and thriving cities.

From navigating the vibrant streets of Kuala Lumpur to discovering the idyllic beaches of Langkawi, expats in Malaysia can truly have the best of both worlds. And with the cost of living generally low compared to most Western countries, it’s easy to see why Malaysia is becoming an increasingly attractive destination for expats.

As with any international move, the journey into expat life in Malaysia is not without its challenges. Cultural nuances, the tropical climate, and a different pace of life may present initial hurdles. Fear not, though, for our comprehensive guide to expat life in Malaysia stands ready to be your compass as you start a new chapter in this Southeast Asian gem.

Life in Malaysia: What to expect from moving to Malaysia as an expat

What is life like in Malaysia?

Malaysia is a melting pot of cultures, with Malay, Chinese, Indian, and indigenous communities all calling Malaysia home. This diversity is best reflected in the cuisine, festivals, and daily life, which combine to make Malaysia one of the most exciting and vibrant places in the world to settle down. That said, this can also be overwhelming and some expats in Malaysia may experience culture shock as they attempt to settle in.

Islam is the predominant religion in Malaysia, accounting for 63.5% of the population. However, the Constitution in Malaysia guarantees freedom of religion, and you’ll find communities practising Buddhism (18.7%), Christianity (9.1%) and Hinduism (6.1%), along with other faiths. Because of this, Malaysians celebrate a wide variety of festivals, including Hari Raya Aidilfitri (the end of Ramadan), Chinese New Year, Diwali and Christmas. These festivities are often marked by colourful processions, traditional performances, and communal feasts.

Malaysian food is renowned for its unique flavours, with dishes like nasi lemak, rendang, and satay taking centre stage. Expats in Malaysia should look out for “mamak stalls“. These open-air eateries are famous for serving delicious local delights 24/7, providing a communal space where people from various backgrounds come together to enjoy good food and conversation.

Art and music thrive in Malaysia, and cities are often brimming with galleries, theatres and concert venues, all showcasing a diverse range of performances. The country’s cultural diversity is reflected in the arts, with influences from traditional Malay, Chinese, Indian, and indigenous art forms contributing to a dynamic landscape.

The tropical climate is another thing expats can look forward to. Being close to the equator, Malaysia is warm year-round, with temperatures ranging from around 23°C to 35°C. Be warned: Malaysia also has two monsoon seasons: the Southwest Monsoon (May to September) and the Northeast Monsoon (November to March).

Is Malaysia affordable for expats and foreigners?

Expats in Malaysia can expect both a higher wage compared to the national average, and a low cost of living, making it easy to enjoy a high-quality of life in Malaysia.

Everything from eating out, to the cost of travel and rent is generally cheaper in Malaysia than in Western countries. Meanwhile, the advantage of a public healthcare system gives expats working and paying taxes in Malaysia the option to use either public or private healthcare facilities.

Rental costs for housing can vary significantly depending on the location and type of accommodation, though are still comparatively low. As a rule of thumb, expats can expect urban areas to have higher rents, with more affordable options available outside the city centres, especially in suburban or rural areas.

Is Malaysia safe for expats?

Malaysia, in general, is considered relatively safe for expatriates, ranking as the 19th safest country in the world in 2024 according to The World Population Review. The country has low crime rates which have been falling sharply year on year since 2013. Urban areas like Kuala Lumpur, Penang, and Johor Bahru may have slightly higher crime rates than rural areas, but they are still relatively low by global standards.

That said, Malaysia may not be the ideal nesting place for everyone, particularly those in the LGBTQ+ community. As a predominantly Muslim country, Malaysia’s legal system is heavily influenced by Islamic law, criminalising same-sex sexual activity between men and between women. The gender expression of trans people is also criminalised.

How is the political situation in Malaysia

In general, Malaysia is politically stable with relatively little ongoing upheaval. It runs on a federal constitutional monarchy, in which the Yang di-Pertuan Agong is head of state, and the Prime Minister of Malaysia is head of government. Prime ministers are selected through democratic elections every five years. The current prime minister, Anwar Ibrahim, was elected in 2022, with the next election not due until 2027.

Economically, Malaysia enjoyed a huge boom toward the end of the 20th Century and has been on an upward trend ever since, with GDP currently sitting around US$407 billion. This being said, Malaysia has not escaped rising inflation – though this has eased off, and now hovers around 1.5% as of December 2023, down from 3.8% in December 2022.

What language do they speak in Malaysia?

The official language in Malaysia is Bahasa Malaysia, colloquially known as ‘Malay’, and is the language you’re most likely to hear used in daily life. However, with large populations of Indian and Chinese communities, you’ll also find that Mandarin, Cantonese, and Tamil are spoken widely. English is also used as a common language between communities and is especially used in business and education.

While it’s likely that expats will be able to manage living in Malaysia well with just English, learning some basic Malay phrases will help you integrate better into the community and establish meaningful connections with locals. This is especially true in rural areas where English proficiency may be lower. The good news is that Malay has a Latin script, making it one of the easiest Asian languages to learn.

Cost of living in Malaysia

The cost of living in Malaysia will vary depending on where you choose to live, whether in a major city, a more rural expat town or in an island community. However, in general, Malaysia is a relatively affordable country to live in. Expats living in Malaysia can expect to pay less for rent, food, and transportation than they would in Western countries.

The cost of living in Malaysia can vary so we’ve broken down the costs of rent and amenities in the capital Kuala Lumpur, Penang and the popular Langkawi islands.

The cost of living in Kuala Lumpur

An obvious choice for expats moving to Malaysia is the capital city, Kuala Lumpur. One of the most popular expat destinations in the world, Kuala Lumpur is a vibrant and diverse city with a dynamic economy and jobs across various industries – particularly manufacturing, technology and pharmaceuticals. The city’s infrastructure is well-developed with international schools, healthcare facilities and access to modern shopping and entertainment.

The cost of living in Kuala Lumpur is far lower than in Western cities, with the average price of rent in Kuala Lumpur being 83% lower than in London. The estimated cost of living in Kuala Lumpur (without rent) as a single person is around US$541 per month.

The cost of living in Penang

Another desirable location for expats moving to Malaysia, Penang offers a thriving arts scene and more laid-back lifestyle than the capital. While the job market is diverse, with opportunities in industries like tourism, manufacturing and technology, it may not be as extensive as in Kuala Lumpur. However, the lower cost of living none-the-less makes Penang an attractive city for expats in Malaysia to settle.

Rent in Penang is, on average, 85.6% lower than in London, while the estimated cost for a single person to live (without rent) sits around US$493.46 per month.

The cost of living in Langkawi

Langkawi, with its breath-taking natural beauty, is a popular choice for expats seeking a more tranquil lifestyle. While the islands may not offer the same level of job opportunities as major cities, Langkawi is particularly attractive to digital nomads and retirees looking to escape the metropolitan noise. Langkawi’s duty-free status contributes to its affordability, and the island’s growing tourism industry creates openings in hospitality and related sectors for expats looking to make some extra spending money.

The cost of renting a one bedroom apartment in Langkawi is around US$264 per month, which is just slightly more expensive than in Penang. Meanwhile basic utilities including electricity, water, heating, and internet come to around US$44.41 per month.

How do I open a bank account in Malaysia?

Opening a bank account as an expat in Malaysia is a generally straightforward process, though specific requirements may vary among banks. While some banks allow online applications, most will require you to go into the branch in person to complete the process.

Once you have submitted your application, the bank will review your application and notify you of the decision. If your application is approved, you will be issued a bank card and be able to start using your bank account as you would in your home country.

To open a bank account in Malaysia, you will need to provide the following documents:

• Passport: Your passport must be valid for at least six months after the date you intend to move to Malaysia.
• Visa: A copy of a valid visa or work permit, which allows you to live and work in Malaysia.
• Proof of residence: This could include a utility bill or a tenancy agreement.
• Proof of identity: You’ll need a second proof of identification, which could be a driver’s licence or national ID card.
• Proof of income: A letter from your employer or a copy of your work contract confirming your employment status and income.
• Bank deposit: There is usually a minimum deposit to open a bank in Malaysia, this can vary from RM500/US$106 to RM3,000/US$634 or more depending on the bank and type of account.

Healthcare in Malaysia

The healthcare system in Malaysia is generally very good, ranking 42nd in the world according to World Population Review. Malaysia benefits from a universal healthcare system for all citizens and residents, funded through taxes. While this doesn’t make healthcare completely free, medical services are heavily subsidised. A trip to the medical centre for something small like a cold or sinus infection, for example, could cost as little as US$10, while an overnight stay in hospital comes to around US$50 for a private room.

Both public and private hospitals in Malaysia offer high-quality care and facilities, and the Malaysian Government is dedicated to improving this further. Indeed, the Health Minister received a 13.5% increase in the 2024 budget, rising from RM36.3 billion to RM41.2 billion.

Do I need international health insurance in Malaysia?

Expats in Malaysia will only benefit from public subsidised healthcare if they pay taxes to Malaysia. This means that if expats are working as digital nomads or are retired, international health insurance is a must.

However, most expats living in Malaysia choose to invest in international health insurance even if they do work in Malaysia and pay taxes. International health insurance gives expats living in Malaysia peace of mind that they can be treated by an English speaking doctor and have access to the care they need without the extended wait times associated with public healthcare.

International health insurance also makes it easier for expats to transfer to countries with better or more specialised services in an emergency.

Where are the best places to live in Malaysia as an expat?

Malaysia offers various attractive locations for expats, each with its own unique features and advantages.

Here are some of the most popular destinations among expats in Malaysia:

1. Kuala Lumpur: As Malaysia’s capital city, Kuala Lumpur is a bustling metropolis with a diverse population. It offers a vibrant urban lifestyle, excellent job opportunities, international schools, and a range of entertainment options. Kuala Lumpur has also topped lists for being one of the world’s best cities for expat living. The expat community in Kuala Lumpur is large and growing, with foreign nationals now making up 9% of the city’s population. As such, English is widely spoken.
2. Penang: Known for its rich cultural heritage, Penang is a state in northwest Malaysia comprising mainland Seberang Perai and Penang Island. Georgetown, the capital, is a UNESCO World Heritage Site with colonial architecture and a thriving arts scene. Penang is also famous for its food, and is a popular choice for retirees and expats looking to settle away from the hustle and bustle of the capital.
3. Johor Bahru: Located near the border with Singapore, Johor Bahru is becoming increasingly popular with expats due to its proximity to its neighbouring country. While still a major city with a thriving city centre and plenty in the way of entertainment, dining and schools, Johor Bahru offers a much lower cost of living than both Kuala Lumpur and Singapore, making it a great choice for expats considering a daily commute across the border.
4. Langkawi: A tropical paradise, Langkawi is an archipelago of 99 islands known for its pristine beaches, lush rainforests, and duty-free status. It offers a serene lifestyle with a mix of natural beauty and easy access to modern amenities, making it an ideal retreat for expats seeking a tranquil environment.
5. Kota Kinabalu: Nestled in Malaysian Borneo, Kota Kinabalu is a gateway to adventure with its proximity to Mount Kinabalu, rainforests, and diverse wildlife. This coastal city offers a laid-back lifestyle, making it appealing to expats who value nature, outdoor activities, and a more relaxed pace of life.
6. Kuching: Another gem in Borneo, Kuching is known for its cultural diversity, friendly locals, and the Sarawak River waterfront. With a mix of modern conveniences and beautiful natural surroundings, Kuching provides expats with a unique and harmonious living experience in the heart of Malaysian Borneo.

Can expats buy property in Malaysia?

Yes, it is entirely possible for expats to buy property in Malaysia. In fact, there’s even a specific Government programme, Malaysia My Second Home (MM2H) which was set up specifically to encourage foreigners to live in Malaysia.

That said, there are still some restrictions and guidelines to be aware of if you’re thinking of buying property in Malaysia. These restrictions include:

• Type of property: Expats in Malaysia are typically allowed to buy residential property, including houses and apartments. However, restrictions may apply to certain types of properties, such as agricultural land, land for commercial development, or low-cost housing.
• Minimum price: Some states in Malaysia have set minimum property prices for foreign buyers. This minimum price can vary, and it may be higher for properties in certain areas or of a specific type. The minimum threshold for expats buying property in Kuala Lumpur, for example, is RM1,000,000/US$211,461.30.
• State Approval: Expats will need to seek approval from the state authority before purchasing property. This is usually handled by your solicitor, but be sure to ask as you’ll need this for your purchase to go through.
• Leasehold and Freehold: Expatriates are generally allowed to purchase both leasehold and freehold properties. However, leasehold properties have a limited tenure, and buyers should be aware of the remaining lease period.
• Financing: Foreign buyers may face restrictions on financing. It’s always best to book an appointment with a couple of local banks to gauge your mortgage options before falling in love with a property.

What is the Malaysia My Second Home scheme?

The Malaysia My Second Home programme is a government initiative designed to attract foreign nationals to live in Malaysia on a long-term basis. It was launched by the Malaysian government in 2002 to promote Malaysia as a destination for expats, retirees, and individuals seeking a second home.

The MM2H programme offers a visa that allows foreigners to stay in Malaysia on a long-term basis, with the flexibility to come and go as they please. This helps by-pass the state approval process mentioned above.

Eligibility requirements for MM2H are simple, with no specific age limit. However, you will need proof that you can support your lifestyle, whether that be through work or an adequate overseas pension. You’ll also need to have a clean criminal record and health record, as well as having international health insurance in place.

Jobs, visas and working in Malaysia

Expats looking to live and work in Malaysia will need to look into visas before they travel. There are a number of different types of visa available to expats in Malaysia depending on your circumstances and the length of your stay.

Types of visa available to expats include:

• Employment Pass (EP): The Employment Pass is designed for foreign nationals employed by Malaysian companies. There are various categories to cater to differing salary levels, skills, and qualifications. This pass is usually tied to a specific employer and job role, facilitating legal employment for a set period of time.
• Dependant Pass (DP): Designed specifically for families of Employment Pass holders, the Dependant Pass allows spouses and children to reside in Malaysia while the primary EP holder works. It ensures that families can stay together during an expat’s time working in Malaysia.
• Malaysia My Second Home (MM2H) Visa: The MM2H Visa is tailored to attract expatriates seeking a long-term stay in Malaysia. Whether for retirement, professional pursuits, or establishing a second home, this program requires applicants to meet specific financial criteria, health insurance standards, and other conditions for eligibility.
• Student Pass: For foreign students looking to study at Malaysian universities, the Student Pass will be valid for the duration of their academic course.
• Social Visit Visa (Long-Term): For extended stays beyond typical tourist visits, the Long-Term Social Visit Visa is meant for foreigners visiting family for a set period. It could also be used if you’re receiving medical treatment in Malaysia. The duration of this visa may vary based on the specific circumstances of the visit.
• Residence Pass-Talent (RP-T): Geared toward highly skilled foreign professionals in key industries, the RP-T offers greater flexibility, allowing holders to change jobs without being tied to a specific employer. This visa is designed to attract top talent to contribute to Malaysia’s strategic sectors.
• Business Visa: Tailored for foreign entrepreneurs looking to establish or invest in businesses in Malaysia, the Business Visa often comes with specific financial and business-related criteria. It facilitates legal residence for those contributing to the local business landscape.
• Spouse Visa: The Spouse Visa permits spouses of Malaysian citizens or permanent residents to live in Malaysia. Tied to the duration of the marriage, this visa allows spouses to accompany their Malaysian partners.
• Malaysian Work Holiday Programme: For citizens of specific countries, including Australia, New Zealand and South Korea, the Malaysian Work Holiday Programme provides an opportunity to work and travel in Malaysia for a limited period.

What is the average expat salary in Malaysia?

The average salary in Malaysia is below what you might expect to earn in most Western countries, and below the national average. As of 2023, the average salary in Malaysia is RM6,610/US$1,398 per month.

To put this in perspective, the average salary in the UK currently sits around £2,913/US$3,701.

That said, while the average salary in Malaysia might be low, expats in certain industries or with desirable skills or experience could enjoy much higher salaries.

These are some of the highest paying jobs in Malaysia:

*January 2024, Salary Explorer

How much tax will I pay in Malaysia?

Expats living in Malaysia who do not have Malaysian residency are taxed at a flat rate of 30% on income.

Expats in Malaysia may be eligible for certain tax exemptions or deductions. These could include allowances for housing, education, and other related expenses. The availability of such benefits may depend on the individual’s employment contract and specific circumstances so it’s always worth getting advice from an embassy or from your employer.

Malaysia also has double taxation agreements with many countries to avoid the same income being taxed in both Malaysia and the expat’s home country. These countries include: United Kingdom, Australia, New Zealand, France, Germany, Italy, South Africa and the United States.

For more advice on taxes, check out our guide to paying taxes as an expat abroad.

International health insurance for expats in Malaysia

Moving to another country can be stressful. But that doesn’t mean your international health insurance should be too.

For over 30 years, William Russell has been helping expats find the right coverage for their needs. Our comprehensive and flexible policies can give you peace of mind knowing your family is protected, wherever you are in the world.

Speak to us today to learn more about how our expat health insurance could benefit you and your family – and good luck moving to Malaysia!