YOUR hard-earned cash could be stretching thousands further in retirement if you moved to this underrated country.
Malaysia is often touted as one of Southeast Asia’s hidden gems, and it’s got everything you could want from pristine beaches and modern cities to world-class healthcare, cheap cost of living and food that travellers rave about.
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Now, a new study by Cargo Force has ranked Malaysia as the TOP country for Brits to retire to out of 130 destinations.
The study was based on factors including affordability, purchasing power, healthcare and quality of life.
It found that every £1,000 you would’ve spent in the UK would be worth £2,006 of spending power in Malaysia – more than double the amount.
You can get pints for as little as £1.80, while your weekly shop could cost just £10 to £15.
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A comfortable lifestyle could set you back just £700 to £1,100 a month per person, according to Retirement Abroad.
Meanwhile, a single UK retiree would spend about £2,300 a month at home.
Roughly 16,000 Brits are currently living in Malaysia, and it’s consistently ranked among the best countries to retire in the world by international expat surveys.
William Cooper, director and co-owner at expat insurance provider William Russell, says: “Malaysia’s appeal isn’t simply that your money can go further.
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“It is the combination of affordability, healthcare, infrastructure, English-language accessibility, and established expat communities that makes it particularly compelling for British retirees.”
Why do retirees like Malaysia?
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From the bustling and culturally rich cities of Kuala Lumpur and George Town to the stunning islands of Langkawi or the coastal paradise of Kota Kinabalu, there is something for everyone in Malaysia.
English is widely spoken across the country, especially in cities and hospitals, so you wouldn’t have to worry too much about a language barrier.
The country also has world-class healthcare at a fraction of UK private costs.
For example, a private annual health screening would set you back £150 to £400, versus between £140 to £1,200 in the UK.
Top private hospitals in Kuala Lumpur, Penang and Johor Bahru are internationally accredited.
Malaysian food is world-renowned and is a mix of Malay, Chinese, Indian and international cuisine – all at very low costs.
You can get a meal out at a mid-range restaurant for just £15 for two people on average, according to William Russell.
Malaysia is also considered one of the safest Southeast Asian countries, with places like Kuala Lumpur, Penang and Johor Bahru considered generally safe for expats.
The weather is warm all year, averaging 27 to 33C, but there are two monsoon seasons.
These are in November to March in the northeast and May to September in the southwest.
Malaysia Airlines and AirAsia both operate direct flights between Heathrow and Kuala Lumpur, with a journey time of between 12 to 13 hours.
Popular retirement areas and how much they cost
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Kuala Lumpur
Malaysia’s capital city, Kuala Lumpur, can offer urban living and luxury shopping but at a much lower cost than Western cities.
It’s known for its iconic skyscrapers, incredible street food and the Batu Caves, a series of stunning Hindu temples inside caves.
Asad Mirza, director at Cargo Force, says the capital is a “popular choice for those who want easy access to major hospitals, restaurants, shopping and international connections”.
Although it’s one of the more expensive places in Malaysia, it’s still highly affordable.
Beer would set you back £3.29, while a restaurant meal for two could cost between £20 to £25, according to Cargo Force.
Your weekly shop would come to around £18 to £22.
And if you wanted to buy a house, you’d pay around £188,000 for a two-bedroom property.
George Town
The gorgeous city of George Town is known as a street food lover’s paradise.
It’s the capital of the island of Penang, just off the west coast of Malaysia, and is famous for its striking colonial architecture.
Asad says the city “could be particularly appealing to retirees looking to keep their housing costs down, with our research showing a two-bedroom property at around £92,800, making it one of the more affordable options”.
Other costs are particularly low, too.
A beer would cost you just £1.83, while a restaurant meal out for two would be £10 to £15.
Plus, a weekly grocery shop would cost just £13 to £16.
Penang
The wider region of Penang is also popular with retirees, with the largest English-speaking expat community in Malaysia.
The island has a mixture of rainforest, beaches and pretty towns with temples, and can provide a slower pace of life.
William says: “Areas such as Tanjung Tokong, Tanjung Bungah, and Batu Feringghi are popular with expats, offering a mix of coastal living, modern accommodation, restaurants, and access to healthcare.”
Beer would cost you £3.11, while a meal out for two costs about £12 to £17.
An average grocery shop would set you back £10 to £15.
What you need to know before you go
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Before you start packing your bags, there’s some important details you need to know.
Get your visa sorted
While you don’t need a visa to enter Malaysia, you’ll need one if you’re planning to live or work there.
The Malaysia My Second Home (MM2H) programme is most often used by retirees, but William says the requirements have become “more demanding” in recent years.
For example, if you want to buy a property you’ll need to pay a minimum purchase price of between £108,000 to £180,000 depending on the state.
The MM2H visa has different tiers including Silver, Gold and Platinum, and each has different income requirements.
The Silver tier is the most accessible for UK pensioners and needs you to have an income of at least £1,800 a month.
The full new state pension is £997 a month, so you would also need to have a modest workplace pension or another income to meet the threshold.
You’ll need to apply through the Malaysia Tourism Authority (MaTiC) and processing currently takes three to six months.
To apply, you’ll need a valid UK passport, criminal record check, bank statements, a medical report, and a health insurance policy valid in Malaysia.
Plus, you’ll need to deposit into a Malaysian bank.
For the Silver tier, your deposit will be a minimum of £90,000.
The visa lasts for five years and can be renewed – you don’t need to pay the deposit again but you must still have the minimum in a Malaysian account.
Frozen state pension
One major drawback is that your UK state pension will be frozen when you move to Malaysia.
That means it won’t increase each year in line with the triple lock and will remain at the level it was at when you moved.
This could mean missing out on £30,000 over a 15-year retirement, according to Retirement Abroad.
Tax agreements
The better news is that the UK and Malaysia have a double tax agreement.
That means you won’t get taxed twice by both the UK and Malaysian governments on certain income.
Government pensions will be taxable only in the UK.
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Private pensions and the state pension can potentially be taxed in Malaysia, but it usually exempts foreign-sourced income.
That means the country is highly tax-efficient for pensioners.