1. Because you can

Not every country welcomes foreign retirees. Malaysia is one of only a handful that have special schemes aimed at attracting long-term foreign retirees.

Under the Malaysia My Second Home Programme (MM2H) foreigners can obtain a 10-year, renewable, multiple-entry social visit pass i.e. residence visa.

Applicants have to prove they can support themselves financially (without working) by meeting certain minimum liquid assets and monthly income criteria and by maintaining a fixed deposit with a bank in Malaysia throughout their stay in Malaysia.

There is quite a bit of paperwork involved in applying for the MM2H but it is relatively straightforward. You can appoint an agent to assist in the application (for a fee) but this is no longer compulsory.

Once you have the 10-year stamp in your passport you are blissfully free of bureaucracy and can leave and re-enter Malaysia freely, using priority MM2H counters at the airport.

But … MM2H has its limitations

The MM2H financial requirements have been tightened-up – so it’s not so affordable for everybody.

The Malaysian government sensibly does not want foreigners taking jobs from Malaysians so MM2H participants are generally not permitted to work.

Part-time work is permitted in certain circumstances but the bureaucracy involved increases exponentially. You can find details on the official MM2H website.

It is no longer permitted to start a business under the MM2H visa.

2. Low Cost of Living

The cost of living in Malaysia is 43% lower than in the US, excluding rent. Residents of Malaysia (irrespective of income or nationality) have been enjoying subsidies on rice, sugar, cooking oil, flour, diesel and cooking gas, though these subsidies are likely to be phased out.

Most other goods and services are cheap by European standards so your pension will definitely stretch further than back home.

But … Getting More Expensive

The perception is that prices are rising fast in Malaysia although officially inflation is in the low single digits. High alcohol duties mean that beer and wine is more expensive than in most European countries.

3. Driving is a pleasure

Malaysia is a big country with superb scenery and an excellent network of expressways.

No … driving is a pain

Traffic congestion in the cities, especially in Kuala Lumpur and Penang, can be a nightmare. Fortunately as a retiree you don’t have to commute when everyone else does and outside of peak hours traffic conditions are much better unless you have school-age children and have to do the school run.

4. Malaysia’s climate is great

When you retire to Malaysia you never have to shovel snow or scrape ice off your car and there are no home heating bills to pay.

Nearly every day is sunny for at least part of the day. Temperatures range from between the mid-20s to low-30s degree celsius and if you want to experience cooler climes there is always the hill resorts like Cameron Highlands. Malaysia’s thunderstorms are spectacular.

No … Malaysia’s climate sucks

It’s monotonous. There are no proper seasons. It rains on more days than not. It is constantly humid and sweaty. Malaysia’s lightning storms are scary, causing 125 fatalities per year. Expensive air-conditioning bills.

5. Fantastic flora and fauna

Malaysia is home to rare and endangered animal species like the Malayan tigers, tapirs, proboscis monkeys and orang-utans.

Malaysia’s rivers and lakes teem with exotic freshwater fish. Snakes, lizards and bats can be found in jungles and caves.

Exotic blooms like Rafflesia Arnoldii can only be found in this part of the world while garden lovers will find it easy to cultivate orchids, hibiscus and other beautiful flowers.

But … disappearing flora and fauna

Due to habitat loss and poaching you can only find the above rare mammals in zoos or special sanctuaries. Snakes are still abundant unfortunately, and many would not want to stumble across any while hiking in the jungle.

6. Malaysia is a healthy country

Generally Malaysia is a healthy place to live. The absence of cold weather means fewer colds and less rheumatism.

Malaria is rare and only found in remote jungle locations. Unlike some neighbouring countries, food hygiene is good and you are unlikely to get food poisoning from eating out.

Hospitals are good and inexpensive by western standards.

No … Malaysia is an unhealthy country

Malaria may be rare but dengue fever is common, and can be fatal. The Zika virus is affecting neighbouring countries and it is only a matter of time before it becomes more common here.

Choking haze, caused by open burning of forests mainly in Indonesia, wafts over Malaysia at certain times of the year.

Malaysian food is delicious but can contain too much oil and sugar. Diabetes is a national problem.

7. Malaysia is a safe, stable and peaceful country

Violent crimes are still rare enough that they get reported in the newspapers.

Malaysians are generally defensive drivers.

Terrorist attacks are almost unknown.

Malaysia is on good terms with all its neighbours, apart from the occasional minor tiffs.

Malaysia is famed for its inter-racial harmony and religious tolerance.

Almost no natural disasters such as earthquakes or typhoons can be found here.

But … safety risks are increasing

Snatch thefts and sexual assaults do seem to be reported more and more in the media.
A minority of drivers are reckless hotheads. Swarms of motorcyclists lead to frequent fatalities.

Thwarted terrorist attacks have been reported in the press.

Racial and religious differences are leading to a more polarised society.

8. Reliable utilities

Power cuts are rare.

Mobile and internet coverage is good.

No … unreliable utilities

Water supply has been cut off a number of times due to pollution spills in rivers.

9. Good schools

You can find a number of excellent international schools in the main population centres such as Marlborough College in Johor and Epsom College at Bandar Enstek, south of Kuala Lumpur. There are some top universities too.

But … they cost an arm and a leg!

International schools in Malaysia (and other countries) are not cheap. School fees can seriously damage the health of your retirement nest-egg!

10. Lots to do & see

There is no shortage of things to do when you retire to Malaysia whether it be beaches and islands, rainforests and caves, temples and museums, theme parks and historic sites.

There are also world-class shopping malls, classy hotels, great food and restaurants. If you like to stay home and watch TV you can catch English football which has a big following in Malaysia.

11. Malaysia’s location

Some of the world’s top tourist destinations are just a short flight away from Malaysia, for example Bali, Phuket, Boracay, Yangon, Saigon, Siem Reap.

What’s more, thanks to Malaysia’s own AirAsia, the world’s leading budget airline, they can all be reached cheaply.

But … Malaysia is too far away.

If you come from Europe or the US, it’s a long flight back to your home country. Since budget airlines do not fly the Malaysia/Europe route, air tickets are expensive.

12. Language

Nearly everybody in Malaysia speaks some English and many are completely fluent so communicating is not a problem for English speakers, unlike in some other Southeast Asian countries.

Bahasa Malaysia is said to be one of the easier languages to learn (though it seems quite hard to some).

13. Foreign retirees can own property

Foreigners can buy properties in Malaysia (subject to various restrictions) and obtain clean freehold or leasehold titles. Many retirees have made good capital appreciation from their property although the market has been a bit flat recently.

But … ownership can bring property headaches

• Can take up to a year to receive the proceeds upon sale of property.

• Have to pay capital gains tax.

• Construction standards are not always good. Leaking roofs are a common problem.

• Property market is patchy. Be careful where you buy. Renting can be a less stressful option.

Should you retire to Malaysia?

Nowhere is perfect, but all things considered, Malaysia has a lot going for it. And Malaysians are warm and friendly and respectful of older people, so you are sure to get a good welcome.

This article first appeared in malaysia-traveller.com