The fifth country on my list to research for retiring abroad is Malaysia, specifically the beautiful island of Penang, located in the Malacca Strait. For those who have not been there, trust me, Malaysia is an amazing country and worth a visit!

I will focus on the same six criteria, some of which are specific to the island of Penang while others are more general to Malaysia as a country.

The currency used in Malaysia is the Malaysian ringgit (RM). The exchange rate is one US dollar to 4.13 RM. The Malaysian ringgit is not pegged to the US dollar.

1, Cost of living and financial sustainability

Daily expenses (groceries, utilities)

• Utilities: (electricity, AC, water, gas, internet) for a two- to three-bedroom apartment average: RM 400 to 700 per month.

• Groceries: for one person, typically cost RM 1,000 to 1,800 per month. This is very dependent on whether you purchase local produce or imported.

Common grocery prices are:

— Bread (RM 1)

— Milk (RM 8/litre)

— Chicken breasts (RM 18 to 25/kg)

— Apples (RM 18/kg)

— Eggs (RM 6 to 9 per dozen)

Housing costs (renting or buying)

Rents and property prices in Malaysia differ by location. Big cities like Kuala Lumpur can be slightly more expensive than the island of Penang or in smaller cities throughout the country. For the purpose of this exercise, the prices are based on Penang and are in RM.

Average monthly rent (furnished, 2025)

— One-bedroom apartment (50 sqm): RM 1,800 to 3,000

— Two-bedroom apartment (80 sqm): RM 2,500 to 4,500

Average purchase price (2025):

— Two-bedroom apartment (80 sqm): RM 1,200,000 to 1,500,000

— Three-bedroom apartment (150 sqm): RM 1,800,000 to 3,000,000

Property taxes

• Assessment tax: a local council tax based on a property's estimated rental value, not its market price. It typically costs RM 500 to 2,000 per year.

• Quit rent: a minimal state land tax, often RM 50 to 200 per year.

• High tax on sale: the Real Property Gains Tax (RPGT) is a significant capital gains tax applied when you sell a property. For foreigners, the rate is a flat 30 per cent on the profit, regardless of how long you have owned it.

Tax environment for residents

Malaysia offers a highly advantageous tax environment for retiree residents, functioning on a territorial system that exempts all foreign-sourced income from local taxation. This means your pensions, investments, and rental earnings from abroad are entirely tax-free when brought into the country.

2, Healthcare quality, accessibility, and affordability

Penang is internationally recognised as a centre of medical excellence, offering retirees high quality and affordability that is difficult to match elsewhere in the world.

The doctors and specialists are highly skilled; a significant proportion are internationally trained. The referral process to a specialist is straightforward and can be quickly done by a local doctor.

Wait times are minimal, and it is common to be able to meet with a specialist like a cardiologist or dermatologist within a few days.

Public healthcare is only available to citizens; therefore, private healthcare is your only choice. A comprehensive international plan for a retiree couple in their 60s typically ranges from RM 12,000 to 25,000 per year.

Long-term care options are very limited, as the culture emphasises family-based care. Consequently, most retirees opt for in-home care, which can cost between RM 2,000 and 4,000 per month, depending on the level required.

3, Climate, environment, and general liveability

Climate

Penang has a classic equatorial climate, it is hot and humid year-round. Average temperatures consistently range from 77F at night to 90F during the day.

Cleanliness of air and water

Penang's air quality is generally good to moderate, but it experiences a seasonal haze when smoke from agricultural fires in neighbouring countries blows across the region, which can be problematic for those with respiratory issues. Meanwhile, while tap water in urban areas is treated, it is considered suitable only for general use, leading most residents to drink bottled water.

Safety and crime levels

Penang is widely regarded as a very safe place for retirees. Violent crime against expatriates is rare.

Gender equality

While Malaysia operates under traditional patriarchal values, foreign retirees typically experience gender equality as the norm. However, the country remains very conservative in its views regarding the LGBTQ+ community.

Overall pace of life

Penang offers modern convenience and a relaxed, tropical lifestyle. The island culture actively promotes a leisurely pace of life centred on food and enjoyment.

4, Visa and legal residency requirements

Retirement visa

The Malaysia My Second Home (MM2H) programme provides renewable, tiered visas (Silver, Gold, Platinum) for retirees. Requirements include a tier-based fixed deposit (from RM 675,000), mandatory property purchase held for ten years, a minimum 90-day annual stay, and the requirement for private medical insurance.

Pathway to permanent residence/citizenship

Permanent residency is granted solely through the renewal of the visa programme. For citizenship, which typically requires at least ten years of residence, naturalisation is an option. However, as Malaysia does not recognise dual citizenship, you must renounce any other nationality to become a citizen.

Property ownership

Foreigners in Malaysia cannot buy landed residential property (houses or terraces) but are allowed to purchase strata-titled properties, such as condominiums, either freehold or leasehold. Minimum purchase price requirements apply and vary depending on the buyer’s visa tier and property location.

Estate laws

Malaysia does not impose inheritance tax, or wealth tax on foreign residents. This tax-friendly environment benefits retirees holding assets or property in the country.

5, Infrastructure, amenities, and ease of integration

Transportation — public and private

Public transport in Penang, especially buses, is available but viewed as inconsistent and less reliable for daily commuting compared to major rail lines in Kuala Lumpur.

Private cars or Uber are the preferred choice for retirees for efficiency and reliability, and both the new car market and second-hand car market are excellent.

Brand new vehicles

Compact — Suzuki Swift, Toyota Yaris: RM 130,000 to 140,000

Mid-Range — Hondo Civic, Toyota Corolla: RM 130,000 to 160,000

SUV — Hyundai Tucson, Toyota RAV4: RM 140,000 — 165,000

Annual cost of car ownership

— Insurance: RM 1,000 — 1,800

— Road tax: RM 90

— Tolls: RM 3,600

— Fuel: RM 3,000 to 4,800

— Service and Maintenance: RM 600 to 1,200

— Parking (residents parking permit): RM 1,000-plus

Amenities

• Supermarkets: Penang offers a diverse and well-stocked supermarket scene that caters to all needs and budgets. You can easily find everything from large, familiar international hypermarkets to premium grocers specialising in imported goods.

• Cinemas and malls: Penang's modern shopping malls, such as Gurney Plaza and Queensbay Mall, feature international cinema chains that screen the latest Hollywood films alongside comprehensive shopping, dining, and entertainment options.

• Social clubs: Penang offers a social club scene, ranging from colonial-era institutions like the Penang Club and the family-friendly Penang Sports Club to hobby-focused groups. These clubs serve as active social hubs for both expatriates and locals and are a common way to meet new people as a retiree.

• Banking: Malaysia offers a modern and accessible banking system for retirees, requiring a local account for long-term stays. Additionally, there are several international banks operating in Penang, including HSBC, Standard Chartered, and Citibank.

Local culture open to foreigners

Penang's vibrant culture is a blend of Malay, Chinese, and Indian influences. This longstanding multiculturalism has fostered a local community that is not only accustomed to diversity but is also notably friendly and welcoming to newcomers.

As a result of this diversity, English is widely spoken throughout the country, making daily life and integration significantly easier for retirees.

6, Proximity to family, friends and travel links

Relocating abroad often means starting with a small social circle, which can be isolating, especially for first-time movers. Since connections are often made through work, retirees must actively “retrain” their approach and make a conscious effort to build a new social network.

Air travel

The primary air gateway for the island is Penang International Airport (PEN), which provides numerous connections to key Asian hubs. However, for intercontinental travel to North America, Europe, or the UK, passengers must connect through Kuala Lumpur, either by a short flight or by road.

7, Conclusion

The ideal retiree for Malaysia is budget-conscious and culturally flexible, seeking a high-quality life with great food and affordable healthcare rather than a fast-paced or status-driven environment.

However, this lifestyle is not a good fit for someone who is inflexible or easily frustrated by cultural differences and prefers western-style living.

For a couple to live very comfortably in Malaysia and specific to Penang in 2025 while renting, a minimum annual income of between RM 120,000 and RM 180,000 ($29,000 to $43,600) is a prudent benchmark.

References

Barrett, W. (2025). Forbes — Available from: https://www.forbes.com/sites/williampbarrett/2025/07/19/the-best-places-to-retire-abroad-in-2025/

Hoxton Wealth (2025). Available from: https://hoxtonwealth.com/blog/retiring-to-malaysia-everything-you-need-to-know-about-the-mm2h-visa

Goh, A. (2025). Business Insider. Available from: https://www.businessinsider.com/retiree-moved-to-penang-malaysia-mm2h-visa-retirement-2025-10

International Citizens Insurance (2025). Available from: https://www.internationalinsurance.com/countries/malaysia/health-insurance/?srsltid=AfmBOopSsaTsC_VwQRBR0UKApuovugkl4mEEfJdh4MwWHTrpYxoaKSQn

Raccuia, K. (2025). International Living. Available from: https://internationalliving.com/countries/malaysia/retire-in-malaysia/

Unbiased (2024) Unbiased. Available from: https://www.unbiased.com/discover/retirement/retire-in-malaysia

• Carla Seely has 25 years of experience in international financial services, wealth management, and insurance. She holds an MSc in Business and Management and multiple professional designations, including ACSI, QAFP and AINS, along with several investment licences

• For further inquiries or suggested topics, e-mail justaskcarla@outlook.com