malaysia - s3.amazonaws.com · history and heritage, victorians christened it “the pearl of the...

An International Living report • www.InternationalLiving.com

MALAYSIA

Find the Perfect RETIREMENT LOCATION

in…

Find the Perfect Retirement Location in…Malaysia

An International Living report

Designer: Lorie Drozdenko

Cover photo: ©Fotolia.com/Kara-Kotsya

©IL/Eoin Bassett

© Copyright 2014. International Living Publishing Ltd., Elysium House, Ballytruckle, Waterford, Ireland. All rights reserved. No part of this report may be reproduced by any means without the express written consent of the publisher. The information contained herein is obtained from sources believed to be reliable, but its accuracy cannot be guaranteed. Registered in Ireland No. 285214.

1Find the Perfect Retirement Location in…Malaysia

WELCOME TO MALAYSIA

Conjuring up all the mysteries of Asia, Malaysia is a former British colony. The sultans, headhunters, pirates, and gin-swilling English rubber planters of the Victorian age have long since gone, but the

country remains as colorful as ever. Beyond the lofty skyscrapers of the capital, Kuala Lumpur, its dramatic canvas is embroidered with tropical beaches, mountains, dense rainforest, and vivid-green tea plantations.

It’s Malay…it’s Chinese…it’s Indian…it’s international. Influences from across Asia and beyond have merged together to create an extraordinary cross-cultural melting pot of customs, dress, architecture, and cuisine. Along with foreign expats from around the globe, the country is home to Malay, Chinese, and Indian Malaysians.

©Fotolia.com/nyiragongo

2 Find the Perfect Retirement Location in…Malaysia

There are still traces of the British influence. For example, Malaysians drive on the left and expect to see locals gathered around TV sets at midnight, watching soccer matches beamed live from the U.K. Most of the signposts on the roads and highways are also in English as well as Malay, making driving around the country relatively easy.

Throughout the Muslim world, there’s probably no more liberal country. Although most Malay women cover their hair with tudung headscarves, the younger Malay women often wear tight jeans, skimpy tops, and makeup. Foreigners don’t need to give up drinking alcohol, eating pork, or even gambling—though you’ll have to visit the Genting Highlands for the latter. In expat areas, Christians will find plenty of churches for worship, and Christmas is one of Malaysia’s most celebrated holidays.

Our favorite locations in MalaysiaPenang

Many foreign retirees opt for a new life on Penang Island, a 50-minute flight from Kuala Lumpur to Penang International Airport. It’s also accessible by an eight-mile long road bridge and a ferry from the mainland that runs 24 hours a day. A second bridge opened in 2014.

One of the oldest outposts of the former British Empire, Penang delivers 110 square miles of tropical treasures. A lush, mountainous island oozing history and heritage, Victorians christened it “the Pearl of the Orient”. It lies anchored on the Spice Route, just off Malaysia’s west coast, a mere two-hour drive from the boarders of southern Thailand.

Home to around a million-and-a-half people, Penang is a colorful mix of Malay, Indians, and Peranakans—descendants of Chinese immigrants. And joining them in recent years is an ever-increasing number of Western expats lured by the benefits and pleasures of life here.

The beaches here attract vacationers from around Malaysia and beyond. Thousands of visitors come every year on “food pilgrimages” to feast on the region’s best cuisine from early morning dim sum dumpling stalls to midnight Nasi Kandar curry shops where dishes cost just a few bucks.

3www.InternationalLiving.com

The island’s capital is George Town and there are few places like it in the world. Along the seafront, grand German-style buildings housing museums and restaurants face Chinese clan jetties where you’ll be welcomed with tea. There is something of a café culture in George Town and many of the restored colonial-era shophouses are home to trendy cafés and art galleries. In fact, art is one of the big draws for tourists from China and Singapore, who crowd around the city’s famous graffiti art to take photos. The heart of Penang is the colonial core of George Town. Here you can stroll down a street of Peranakan pork butchers, take a left and in a few minutes be standing amidst the jewelers and sari sellers of Little India, or walk a little farther and explore the little antique stores tucked into crumbling shophouses on Chulia Street and brimming with eclectic reminders of the island’s colorful past.

Penang is a melting pot of cultures and offers many of the expat pleasures of life

©IL/Eoin Bassett


Most expats opt to live along the northern coast, just a few miles outside George Town. Prime residential areas include Pulau Tikus, Tanjung Tokong, Tanjung Bungah, and Batu Ferringhi— Penang’s main beach area.

Real estate examples in Penang:

• A one-bedroom, one-bathroom condo apartment near Batu Ferringhi. The apartment also has an open-plan kitchen/living area and 1,000 square feet of living space. Shared facilities include a large swimming pool set in landscaped gardens, a gym, tennis courts, and a sauna. Price: MYR 500,000 ($155,000).

• A one-bedroom, one-bathroom condo in the popular Pulau Tikus area of Penang. There’s also a small kitchen and living area and a parking space. Communal facilities include a swimming pool, a mini mart, and a restaurant. Price: MYR 550,000 ($170,500).

• A newly renovated and fully furnished condo apartment with 1,500 square feet of living space, also close to Batu Ferringhi. The apartment has one bedroom, one bathroom, a small kitchen, and a lounge area. Communal facilities include tennis courts and a swimming pool. Price: MYR 550,000 ($170,500).

• A two-bedroom condo in Tanjung Tokong. The apartment has 1,000 square feet of living space and also includes an open-plan kitchen and living area. The condo tower is set in a landscaped garden with an attractive swimming pool. There’s also a communal roof terrace with an infinity pool. Price: MYR 550,000 ($170,500).

Kuala LumpurUsually abbreviated to “KL”, Kuala Lumpur, which translates as “Muddy

River”, is Malaysia’s capital and is fast becoming a favorite for travelers looking for great restaurants, cool cafés, and stylish bars. The airports, highways, and the user-friendly monorail are more modern than in many Western cities.

Dominated by the twin PETRONAS Towers, once the tallest freestanding buildings in the world, the city center is getting a new high-rise skyline. But along with the mosques, churches, and the Hindu and Buddhist temples, the mock Tudor buildings from the British colonial era still stand tall.


Conveniences abound, especially around the heart of the city known as the “Golden Triangle”—Internet cafes, English bookstores, cinemas, international-standard hospitals and schools, and branches of Western supermarkets such as the U.K.’s Tesco and Cold Storage.

Although Kuala Lumpur is more expensive than other parts of Malaysia, it is the capital—and capitals invariably are. Swiss Bank UBS surveyed 71 comparable cities in the world from London to Jakarta. Kuala Lumpur was rated the seventh cheapest place to buy an identical basket of 122 goods and services.

Although foreigners can own freehold landed properties and apartments above MYR 250,000 ($77,500), in KL’s center and poshest suburbs, finding anything below that is pretty much impossible.

Though Malaysia’s most modern city, Kuala Lumpur still retains some of its traditions

©IL/Eoin Bassett


Real estate examples in Kuala Lumpur: $1 = 3.22 MYR/1 MYR = $0.310

• A 1,400-square-foot condo with three bedrooms and three bathrooms. The property is located in the popular district of Puchong Jaya. It’s being sold partially furnished and also includes an open-plan kitchen/living area. Communal amenities include a swimming pool, a business center, a launderette, and a mini market. Price: MYR 553,000 ($171,430).

• A recently renovated condo apartment with 1,405 square feet of living space. The apartment has three bedrooms, two bathrooms, a dry and wet kitchen, and a small balcony. Communal facilities include a swimming pool, a squash court, a business center, and a restaurant. Price: MYR 610,000 ($189,100).

• An upmarket penthouse apartment with one bedroom and one bathroom. The apartment is tastefully furnished with marble floors and counters. It also includes a kitchen and a balcony with excellent views of the surrounding areas. Communal facilities include a rooftop terrace and social area, a swimming pool, landscaped gardens, a mini mart, and a restaurant. Price: MYR 890,000 ($275,900).

The property buying process in MalaysiaMalaysia has some of the most liberal regulations in the region when it

comes to foreigners buying residential property, particularly landed homes. Right now, it’s the only country in Asia where foreigners can buy property freehold. Unfortunately the rules have changed a number of times over the years and there is still some confusion over the current policies that govern the minimum price at which foreigners can buy.

The latest decision by the federal government was to raise the minimum property price to MYR 500,000 ($155,000), effective 1 January 2012. Until this rise, over half the properties purchased by foreigners in Malaysia were in the MYR 250,000 to MYR 500,000 ($77,500 to $155,000) bracket, so this rise hit the industry quite hard.

However, property in Malaysia is actually a state matter, so the states have the power to overrule federal policies and often do.


Not all the states have followed the current federal policy on the minimum purchase, and the following states have different rules:

Selangor (which controls the rates in the capital Kuala Lumpur) initially decided to drop their minimum price for foreigners to MYR 125,000 ($38,750) but have since raised it to MYR 250,000 ($77,500), which is still the lowest in Malaysia.

Penang raised the minimum price for foreigners to MYR 500,000 ($155,000), in line with the federal government’s guideline, but made a special exemption for Malaysia My Second Home (MM2H) program participants (you’ll learn more about this in the visas and residence section below). The State Land Office in Penang has confirmed this but they will not stipulate a minimum price in writing. They have however confirmed that MM2H participants can buy up to two properties priced below MYR 500,000 ($155,000). In practice, it seems that they will approve a purchase above MYR 250,000 ($77,500) and if two properties are purchased this can drop to MYR 125,000 ($38,750) each.

Sarawak has always had different rules, probably because it is located in East Malaysia, on the island of Borneo. They set a minimum price for foreigners at MYR 350,000 ($108,500). They also have different rules for people wishing to join the MM2H program.

At the time of writing all of the other states in Malaysia have a MYR 500,000 ($155,000) minimum price for foreigners looking to purchase property.

Visas and residenceYou don’t need a special visa in advance for a short visit to Malaysia. The

Social Visit Pass is issued at the airport on arrival in the country. Normally valid for a single entry, it allows a stay of three months from the date of issue. If you need to, or would like to, stay longer you will have to leave the country for two days and two nights and then re-enter, where you will automatically be given another three-month visa.

Malaysia My Second Home Program

The Malaysia My Second Home (MM2H) program was conceived by the Malaysian government to allow foreign citizens (with spouse and children) to stay in Malaysia for an extended period of time. Participants under this


program are given renewable 10-year, multiple-entry Social Visit Passes. This visa also allows you to sponsor your parents and/or siblings should you choose to do so.

The rules of application differ depending if you are below or above 50 years of age. If you are above 50 you are now allowed to work up to 20 hours per week. If you are below 50 years of age you are not allowed to work unless you decide to start your own business.

A renewable, 10-year, multiple-entry visa allows you to live or spend extended time in Malaysia year round. If your visa is issued for mainland Malaysia it does not include the Malaysian territories of Sarawak and Sabah in Borneo. However, if your visa is issued for Malaysian territories in Borneo it does include mainland Malaysia. Otherwise, you’re on a 90-day Social Visit Pass.

No matter what visa you hold in Malaysia, all overseas remittances remain tax free.

The main applicant, if below 50 years of age, needs a monthly income of MYR 10,000 ($3,100). They must also leave a fixed deposit of MYR 300,000 ($93,000) in a bank based in Malaysia. This can be an international bank such as Citibank or HSBC and does not have to be a Malaysian bank. You must also prove that you have assets outside Malaysia to the tune of MYR 500,000 ($155,000).

After one year, you can withdraw up to MYR 150,000 ($46,500) for medical expenses, education, or a property purchase.

If you’re above 50 years of age it’s a great deal easier and the financial restrictions are less. The main applicant needs a monthly income of MYR 10,000 ($3,099) or must leave a fixed deposit of MYR 150,000 ($46,500) in a bank based in Malaysia. You must also have assets outside Malaysia of MYR 350,000 ($108,500).

As the rules and regulations change regularly, it’s best to watch the websites for updated information. These are two of the best: www.penangmyhome.com/Main.htm and www.mm2h.gov.my.


Cost of livingThe cost of living in Malaysia is cheap. A couple can easily live on just over

$1,000 a month. A budget of $3,000 or more will have you living in absolute luxury.

An entire bagful of fresh fruit, including mangoes, bananas, apples, oranges, and pineapples costs just $4. High-speed Internet is reliable and costs $30 a month, and the premier cable TV package for $40 includes favorites like HBO, CNN, and the BBC.

And a couple can eat out well for less than $10. Go to night bazaars, and you can dine for much less than that: chicken-and-rice meals are often only $1.

A sample monthly budgetThis is a typical monthly budget for a couple living on Penang:

Rent $500

Electricity $100

Water $10

Cell phone $10

Gas $4

Internet $30

TV $40

Maid (four hours a week) $15

Transportation $34 for gas

Health insurance $33

Dining out/entertainment $300 (eating out five nights a week, note alcohol not included)

Monthly total: $1,076


Health careMalaysia has both public and private health care with medical expertise on

par or better than most Western countries. In fact, Malaysia is known for its medical tourism, as a medical center of excellence, and is among the world’s best—and cheapest.

A visit to the dentist for an annual check-up is never a pleasant experience at home, but here it actually is. The staff are friendly, professional, and genuinely happy to see you. The majority of the doctors and dentists are trained in the U.S. and the U.K. Dentist studios are state-of-the art and as your seat reclines, a flat-screen TV showing Animal Planet episodes magically appears from the ceiling. Your mind is immediately someplace else as you feel yourself instantly relaxing.

An annual check-up costs $9. A filling and a cleaning costs about $32.50. In the U.S. this treatment costs on average $180. To replace a cap on a tooth costs on average $300, while at home this would cost closer to $1,200.

Prescriptions in Malaysia cost a fifth of what you pay at home. But it’s not just the cost that’s attractive; it’s the service. The pharmacists, like the rest of Malaysia’s medical staff, are well trained and informed. Malaysians are a friendly people, but it’s the genuine interest that they take in you, no matter how small or large the issue, which impresses. It takes you back to a time when service meant something. That same service is alive and well here.

And then there is the occasional “hospital run.” A visit to the emergency room for a minor emergency costs about $15. A CAT scan just $90. A sinus operation (as an example) with a world-class surgeon, anesthesiologist, and full medical staff, including your own private room, under general anesthetic including two nights accommodation in hospital will set you back $1,000.

Private health insurance with expat companies such as BUPA and Allianz Insurance will cover you for all emergencies, but it’s also a country where you can survive without cover due to the low charges. Gleneagles Private Hospital (website: www.gleneagles-penang.com) and the Lam Wah Eee Hospital (website: www.hlwe.com.my) charge just $12 and $8 respectively for daily nursing care. Private room charges start at $28 but for $90 you can have your own room with en-suite, flat screen TV with cable, and a great view.

http://www.gleneagles-penang.com

http://www.hlwe.com.my


It’s a country where medical tourism has been taken to the next level. For more information about this, see the Association of Private Hospitals Malaysia (APHM) website: www.hospitals-malaysia.org.

TaxesOnly income from Malaysian sources is taxable in Malaysia. As an expat,

you may be exempt from paying any income tax if you aren’t classified as a fiscal resident and if your period of employment in Malaysia does not exceed 60 days per calendar year. However, if you are a non-resident for tax purposes but your period of employment exceeds 60 days, you will be taxed at 26% on all your income from Malaysian sources.

Generally, foreigners who are living in Malaysia for more than 182 days per year qualify as residents for tax purposes. As a result income tax will be withheld from your salary and settled at the end of the financial year upon filing of your tax return.

Malaysia has no inheritance tax. There is no capital gains tax in Malaysia either. However, real property gains tax (RPGT) applies to properties sold less than five years after purchase. Those sold less than two years after purchase are subject to 10% RPGT, and those sold between two and five years after purchase are subject to 5% RGPT.

Accessibility to North AmericaWhile there are no direct flights from North America to Malaysia, many

of the flights only require one stop if you’re departing from the west or east coast of America. For instance, flights leaving Los Angeles international airport tend to make a stop in China or South Korea, or Hong Kong. Flights leaving New York tend to stop in Istanbul or Dubai. It’s a long flight so be prepared. Flights from the west coast of America can take up to 29 hours with just one stop. Flights from the east coast take up to 24 hours with one stop.

Fun stuffYou certainly won’t go short of anything in Kuala Lumpur (KL), or the

other popular expat hangout, Penang Island. If you sway to the party beat,


KL and Penang have clubs galore and an abundance of boutique hotels, cool cafés, and international restaurants.

Throughout the Muslim world, there’s probably no more liberal country. Although most Malay women cover their hair with tudung headscarves, the younger Malay women often wear tight jeans, skimpy tops, and makeup. Foreigners don’t need to give up drinking alcohol, eating pork, or even gambling—though you’ll have to visit the Genting Highlands for the latter.

Festivals are a big deal in Malaysia. There are numerous colorful festivals throughout the year here—at least one a month. One of the best known is the George Town Festival that runs from mid-June to mid-July. It’s an international festival that brings in dance groups from New York, opera singers from Italy, theater groups from China, and of course Malaysian artists from all over the country. There’s an event every single night of the week. It’s a month-long party and a fun way to appreciate Malaysian life.

Due to its cooler climate, the Cameron Highlands are popular with weekend golfers looking to tee off among the tea plantations and strawberry farms. This is also where American millionaire Jim Thompson, famous for being one of the founding members of the OSS (the Office of Strategic Services which was the predecessor of the CIA) in WWII and reinvigorating the Thai silk industry, disappeared in March 1967. He went out for a walk one day and was never heard from again, but you can still stay in the cottage that he rented before he disappeared.

The ferry crossing from mainland Malaysia to Penang Island offers dramatic views of George Town and the mighty Penang Hill. And it costs just 35 cents. Take it at night to see the houses lit up on the hill. Even better, the ferry only charges one-way: It’s free when you travel from Penang to the mainland. Take it early in the morning, as the sun starts to rise and the fishing fleets come in, to see the port much as early travelers would have.

On the water are the Chinese “Clan Jetties.” Formerly, Chinese workers were landed at the jetty that matched their surname. Instead of spending a fortune at one of George Town’s many boutique hotels, do a home-stay via the Chew Jetty. You can live simply on the water with a traditional jetty family, sampling Chinese food and enjoying the harbor view, for as little as $10 a night.


If you’re keen on Penang, there’s plenty here for colonial history buffs and foodies. And beaches are on George Town’s doorstep. A 60-cent bus ride takes you past up-market Gurney Drive to Batu Ferringhi’s golden sands. Gurney Drive’s promenade is a favorite spot to catch the sunset and then feast, feast, feast. There’s a dazzling array of stalls and restaurants selling delights such as charcoal-baked crabs, salt-baked shrimp, and Penang’s signature fried flat noodle dish, Char Koay Teow. It’s cooked using sweet dark soy sauce, bean sprouts, garlic, onions, Chinese sausages, prawns, chili, and squid. People drive from miles around just to sample it.


MALAYSIA CONTACTS

IL contactsFor more coverage on Malaysia make sure you take a look at our website:

www.internationalliving.com, where you’ll find a wealth of information, contacts, and news from around the world.

You can also find us on Facebook. We currently have over 214,000 followers…and counting. This is a great way to get in touch with other IL readers and all our editors. Plus it’s full of fun and interesting photos, videos, and much more. Find us at www.facebook.com/internationalliving.

International Living’s Community website is the place to get answers to all your live-overseas questions. The International Living Community goal is to give you up-to-date, informative, and first-hand answers to your living, retiring, and working overseas questions. We know from more than 30 years of experience that there are places around the world that are cheaper…healthier…safer…freer…than you ever thought possible. Our job at International Living is to help you discover these places, and help you take advantage of the opportunities they offer.

Whatever you want to do in Malaysia, you’ll find something to interest you on our International Living Classified Ads website. This is the best way to reach your fellow readers, like-minded individuals, and the thousands of people who visit Internationalliving.com every day. If you want to sell or buy a property overseas, offer an expat service or are seeking one, want to promote a blog, or post a “want” ad…check out http://classifieds.internationalliving.com. And as a buyer of this Blueprint, you’ll get a special reduced rate when placing an ad. Just quote this promotional code, ILVPRO15, and you’ll get 15% off the regular price of an ad.

Live Large for Less on the Exotic Islands of South East Asia: White sands, the scent of spices, the call of the east. Thailand, Malaysia, and the Philippines are so much more than exotic vacation spots. Enticing expats and retirees from around the globe, these fabled lands of South East Asia still beckon with the promise and rewards of an exciting life overseas.

http://community.internationalliving.com/

http://www.Internationalliving.com

http://classifieds.internationalliving.com


Live Large for Less on The Exotic Islands of South East Asia is the best resource available to help you get to know this paradise that is South East Asia. From finding a property…to obtaining residence. You’ll learn how to, travel, live, and retire in this part of the world. With this report as your guide, you’ll save time, money, and hours of frustration…for more see https://secure.internationalliving.com/BBSED/W120Q9ED.

Embassies• U.S. Embassy in Malaysia, 376 Jalan Tun Razak, 50400 Kuala

Lumpur, Malaysia; tel. +60 (3) 2168-5000; website: http://malaysia.usembassy.gov.

• Malaysia Embassy in the U.S., 3516 International Court, N.W. Washington DC. 20008; tel. (202) 572-9700; fax (202) 572-9882; email: [email protected]; website: www.kln.gov.my/perwakilan/washington.

• Malaysia High Commission in Canada, 60 Boteler Street, Ottawa, K1N 8YR, Ontario; tel. (613) 241-5182; email: [email protected]; website: www.kln.gov.my/web/can_ottawa/.

• Canadian Embassy in Malaysia, 17th Floor, Menara Tan & Tan, 207 Jalan Tun Razak, 50400 Kuala Lumpur; tel. +60 (3) 2718-3333; email: [email protected]; website: www.canadainternational.gc.ca/malaysia-malaisie/.

Note: The Visa and Immigration Section at the High Commission of Canada in Malaysia (Kuala Lumpur) is closed and services transferred to the High Commission of Canada in Singapore (Singapore), One George Street, #11-01, Singapore 049145; tel. +65 6854-5900; website: www.canadainternational.gc.ca/singapore-singapour/.

Expat resources• @llo’ Expat Malaysia: website: www.malaysia.alloexpat.com.

• Expat Exchange; website: www.expatexchange.com/malaysia/liveinmalaysia.html


Real estate • iProperty.com (all areas in Malaysia); website:

www.iproperty.com.my.

• For real estate in Penang, contact Alvin Cheah, Astro Hill Realty; email: [email protected]; website: www.astrohill.iagent.my.

• Daiwa Housing Agency (Penang); website; www.daiwahousing.com.my.


MAP OF MALAYSIA

malaysia - s3.amazonaws.com · history and heritage, victorians christened it “the pearl of the...

Documents