Are you thinking of retiring abroad? Have you considered Malaysia?

Malaysia, whether it’s the New York-esque high-rise infrastructure of Kuala Lumpur, the old towns and beaches of Penang, or Langkawi, with it’s untouched islands so close to paradise it feels like being on the set of a classic Steven Spielberg Hollywood movie. Malaysia truly has something to offer for everybody, and since I arrived here for the first time 10 years ago, I have seen firsthand how this tropical melting pot of cultures has become the perfect choice of retirement for expatriates from all corners of the world.

Why Retire in Malaysia?

Malaysia's Rise in the Global Retirement Index

As of 2025, Malaysia ranks 7th in the International Living’s Annual Global Retirement Index, whereas 10 years ago, Malaysia wasn’t even on the list. So why is this? Why is Malaysia climbing the ranks and seeing the number of foreigners who choose to spend their Golden years and beyond in the humidity, traffic, and the land of Durian (If you haven’t been here yet, you will smell Durian first - Good luck)?  

What Retirees Love About Malaysia

In the Expats Club, we have the ‘MM2H and Expat Retiree' group, we hold monthly events in both Kuala Lumpur and Penang and have a lot of members who we have helped relocate from their home countries to their new homes in Malaysia. We have regular conversations, and I often ask, “Out of everywhere in the world, why did you pick Malaysia?” Here are some of those answers:

Retirement Visa in Malaysia: MM2H & S-MM2H

"They actually offer a retirement visa!”

Many expats who have lived and worked abroad their whole lives, opened businesses in Singapore or managed offices in Vietnam, find that, upon retiring, they have to leave, as retirement visas and residency programmes are not available in every country. If you have become accustomed to enjoying life in South East Asia, you don’t have access to live freely in the EU, or you are looking for a fresh start and flying from west to east, Malaysia has the MM2H/ SMM2H visa options for you, as long as you meet its requirements.

Tip: Work with an experienced agent who can guide you through the application process. Reach out to me if you need help connecting to a recommended agent.

English as a Common Language in Malaysia

“It’s English speaking”.

This matters a lot to people. If you’re coming over to retire, learning a whole new language can be difficult and daunting to navigate. Being able to settle into a country on day one matters to a lot of people, so understanding the language is a bonus.

Malaysia Does Not Impose Tax on Foreign Income

"No tax on foreign income”

For those drawing down on pensions or rental income, knowing that they won’t be taxed when they withdraw money abroad is a must. As of this point, Malaysia has no tax on foreign income, so all we have to focus on is the tax you’re paying in your home country.

Low Cost of Living in Malaysia for Retirees and Expats

“It’s so cheap”

Now, I know this is relative, but it comes up time and time again. I know when I speak to family in the UK and I tell them “My electricity bill has gone to RM180 this month”, they can’t believe what they’re hearing when they discover its $42.80USD (31.94 GBP). With rent and groceries being below half of what I would have expected to pay, for those with Western pensions and income, find that their money goes further in Malaysia.

Safety and Security of Living in Malaysia

"I always feel safe”

As someone who has worked in over 40 countries, I can confirm that Malaysia has some of the greatest, most caring people I have ever met. I have felt safe from the moment I stepped off the flight, and it brings people peace of mind knowing they are not restricted to their apartments.

Supportive Expat and Retiree Community

“The Expat Community is very supportive”

As the owner of an Expat community called The Expats Club in Malaysia, with over 12,000 members, I see it. The community here is amazing. One of the witnesses at my recent wedding was the wife of one of my closest retired Australian friends, whom I met in my own Expat community. You feel everyone is moving towards something, everyone is supportive, and it’s a pleasure to be around the retirees in both Kuala Lumpur and Penang.

Diverse and Delicious Food Scene in Malaysia

“I love the food, it’s hard to stay skinny”

The food is such a melting pot of different cuisines; if you want it, they have it, and there is no possible way you can eat at every restaurant. Whether that’s fine dining, discovering Nasi Kandars or even one of the many uncles operating street vendors, cooking the same meal over and over again for 40 years until the recipe is perfected.

High-Quality Healthcare in Malaysia

“The healthcare is better than home”

This is a major one for me; the healthcare system in Malaysia is incredible. Especially in the Kuala Lumpur area, with hospitals such as Sunway Medical Centre, Prince Court, and Pantai Hospital. They have some of the most high-tech hospitals I have ever seen, the best surgeons and physicians, and you can go through every department in one visit without the need for a waiting list. If you have a comprehensive international health insurance, you can walk in and receive treatment without worry. It’s why Malaysia has become such a beacon for medical tourism within Asia, because you don’t find healthcare like this anywhere in the world.

Is it time to review your Expat Insurance coverage? Read this article here.

Key Considerations Before You Choose Malaysia to Retire

Now, I didn’t include the sun, lifestyle and vibrant culture in those, even though they were mentioned - A lot. Because if you’re considering a move to Malaysia, these are things you will already know. However, if you are in the process of relocating to the home of the Batik Shirt and Roti Canai, here are a few things you may want to consider:

Understanding the MM2H Visa Requirements

Ensure you fully understand the MM2H and S-MM2H visa options, and are working with an agent that fits you and your family's lifestyle. The updated MM2H programme now has 3 tiers, each requiring:

• A fixed deposit in Malaysia

• A property purchase (except in S-MM2H)

• Payment of agent fees

Ensuring you’re working with the correct agent who can break down each tier, find the one that fits your lifestyle and hold your hand through every step of the process should be important to you. For example, some people may prefer the option of the S-MM2H, as there is no property purchase, but others may not want to spend 30 days of the year in Sarawak to get that benefit. Others might prefer the Silver MM2H, but aren’t fully aware that they can purchase the property after the visa is accepted and use up to 50% of the fixed deposit to cover the cost of the home, whilst also ensuring they’re using a fixed deposit that is keeping up with deflating currencies and inflation.

For anyone who wants to speak about MM2H further, please reach out, even if it’s just to be referred to an agent we know will go above and beyond.

Updating your Will for International Assets

Update your Will! Many people move abroad and assume that the Will created in their home country will automatically cover their global assets, but this is very rarely the case. Put it this way, if something happens to you, and amongst the upset of losing you, your spouse and children have to deal with the probate process in your home country. If this is a country like the UK, this process can take anywhere from 6 months to 2 years. During that time, your Will remains with the executor of the estate until everything is finalised. This means any assets you own in your new country are left without legal coverage, and even after the UK Will is eventually sent, there's no guarantee it will be valid, as it may not comply with local laws and jurisdictions.

Having an international Will to cover your global assets will help save a lot of stress for your loved ones, and ensure your assets are distributed exactly as you intended.

Choosing the Right Health Insurance when you Retire in Malaysia

Medical care, on the surface level of bumps and bruises, is very cheap; however, moving into critical illness areas such as oncology becomes extremely expensive, and you didn’t work all your life to spend your retirement fund on hospital bills. You can choose between:

• Local insurance cover: Lower premiums and breakdowns of which funds can be used where, remember, if you’re retiring and pushing 65-70, you may not get another chance to go through the underwriting process, and if you do, there may be exclusions, so the cover you want is the one you want for life.

• International insurance cover: Higher premiums, with direct hospital billing, and it can follow you wherever life takes you, as you never know, when it comes to your MM2H renewal, you may want a change in scenery.

Managing your Taxes and Finances as Retirees in Malaysia

As mentioned, Malaysia currently doesn’t tax foreign income. However, this doesn’t mean you can ignore your tax obligations in your home country. Speaking with a qualified tax advisor about your financial situation can help you avoid unwarranted visits from the tax man. For this, we would refer you to one of the many tax professionals based around the globe whom we trust, to ensure you're fully compliant and protected. At Melbourne Capital Group, one of our advisors can take a deeper look into setting up a cross border tax structure, which can help with things such as Inheritance Tax Planning and managing your estate to ensure your finances are taken care of so you can focus on enjoying your retirement without any doubts in the back of your mind about what may happen tomorrow.

View how we've collaborated with tax experts in the past to provide you with insightful information. Watch here.

‍Getting Help with your Relocation to Malaysia

If you’re unsure about any of the above 4 points I have mentioned, please feel free to reach out, and we can have a chat to make your relocation process easier. Or I can add you to our WhatsApp community of Expat Retirees (& Non-retirees) so you can ask real people, who have been in your situation before, how they did it and if they have any tips and advise for you.

Connect with me on Linkedin or contact me at joshuawebley@melbournecapitalgroup.com