20.12.2023

Moving to Malaysia

Moving to a new country offers amazing prospects and opportunities for exciting experiences. People choose Malaysia as their new home for various reasons. First of all, the economy here is thriving and offers ample employment opportunities in various sectors. The cost of living is also quite affordable, especially compared to other Southeast Asian countries. Furthermore, the country impresses with its diverse culture, where you will find vibrant and welcoming communities. Another attractive aspect of Malaysia is its natural beauty, from the islands and beaches of Langkawi and Tioman to the rainforests of Taman Negara. Here, visitors have the opportunity to enjoy breathtaking landscapes and immerse themselves in the magic of exotic wildlife.

The best cities in Malaysia to move to permanently:

Kuala Lumpur: The capital of Malaysia, which is the cultural and economic center of the country. Kuala Lumpur offers modern facilities, a wide range of educational institutions and numerous cultural events.

Penang: Known as the "Pearl of the Orient", Penang is renowned for its cultural diversity and historical attractions. Affordable housing and beautiful beaches make it an attractive place for permanent residence.

Georgetown: It is the administrative center of Penang and stands out for its unique architectural style, which is a UNESCO World Heritage Site.

Johor Baru: Located on the border with Singapore, the city is known for its industrial base, diverse cultural offerings and rich natural resources.

Kuching: Kuching is located on the island of Borneo and is the capital of the state of Sarawak. The city attracts visitors with its tropical nature as well as cultural and historical attractions.

Ipoh: Ipoh is located in the state of Perak and is known for its beautiful parks and historic buildings. The city has a tranquil setting, which makes it attractive for those looking for a secluded place to live.

Choosing a city depends on your individual preferences such as work, education, lifestyle and proximity to natural beauty.

Foreigners need an appropriate visa to stay in Malaysia for a longer period of time. The most important options are

Malaysia My Second Homeland (MM2H) Visa - for pensioners and financially independent persons over 50 years of age. Issued for 10 years.
Work visa - for employment in a company in Malaysia. It is issued by the employer. Duration - usually 2 years with the possibility of extension.
Entrepreneur or investment visa - if you want to open a business or invest in Malaysia's economy, from $150,000. A residence permit for 5 years is possible.
Malaysia My Second Home (MM2H) visa - for the purchase of luxury properties worth 1 million ringgit (approx. $250,000) or more for a minimum period of 5 years.
Allows a residence permit for up to 10 years.
Visa for talented professionals in the fields of culture, arts and sports - at the invitation of a special government committee.

In addition, there are other more specific types of visas tailored to the particular needs of foreigners wishing to move to Malaysia. When choosing a visa category, it is advisable to carefully check the requirements and conditions for each category.

Cost of living in Malaysia

The cost of living and housing in Malaysia varies greatly depending on the region and city. In large urban centers such as Kuala Lumpur, prices are higher than in smaller towns and cities.
Basic foodstuffs - milk, bread, eggs - are relatively inexpensive. Local markets and stalls are often cheaper than supermarkets.
The cost of renting accommodation varies depending on the neighborhood and type of property. Condominiums and apartments cost around 500 to 2700 ringgit (120 to 650 US dollars) per month. Renting a house costs between 1,500 and 8,500 ringgit ($365-$2,000).
Home purchase prices have also risen due to foreign investment and government support. A three-bedroom apartment or a private detached house can cost around £400,000 ($95,000).
Apart from the cost of food and accommodation, one should also consider the cost of transportation (3 to 5 ringgit per trip on public transport) and utility bills (up to 200 ringgit excluding subsidies). As well as entertainment and other running costs.

The Malaysian tax system

The most important types of tax in Malaysia:

Corporate income tax for resident companies. The rate in 2020 is 24-25% of taxable income.
Individual income tax for residents with an annual income above a certain minimum amount. The rates range from 2 % to 26 % depending on the level of income.
Sales and Service Tax (SST) - an indirect consumption tax on the purchase of goods and services in Malaysia. Suspended in 2020 due to the pandemic.
Petroleum Profits Tax (Petroleum Profits Tax) for oil and gas companies. Rates range from 8 to 40 percent of turnover.
Consumption taxes are levied on luxury goods, car parts, vehicle registrations, real estate, etc.

The social security system in Malaysia includes programs for the financial support of poor citizens and medical care for pensioners. The most important funds are the Employment Insurance Scheme (EIS) and the Employees Provident Fund (EPF). Working citizens automatically contribute to these funds. When they retire at the age of 55, they receive pension payments.

Jobs in demand in Malaysia

Civil engineering and medical specialties are very popular among foreign migrants in Malaysia.
Engineers and construction workers are in demand due to numerous infrastructure projects under government programs and private initiatives - construction of buildings, roads, power plants, etc. - are in demand. Salaries in these fields range from 15-25 ringgit per hour, with experienced professionals earning more.
Due to the rapid population growth in Malaysia, medical personnel are also needed. Doctors are paid around 60-80 ringgit per hour and nurses 30-50 ringgit per hour. Other medical personnel are paid similarly to nurses.
Both sectors show a stable demand for labor and career development opportunities in Malaysia.

Employment of foreigners

To obtain a work permit in Malaysia, you must first sign a contract of at least two years with a local employer. Due to the presence of many international companies, competition in the job market is high.
There are vacancies for new arrivals in the tourism, telecommunications and science sectors. It is also worth looking into employment opportunities with companies in your home country that have branches in Malaysia.