Malaysia is one of the most beautiful countries in Southeast Asia and a popular holiday location for tourists. While most people visit Malaysia for short vacations, there are some who love to stay here for months, to take a break from the hectic life back home and enjoy the climate and gorgeous landscapes of Malaysia.
On the other hand, there are people who are relocating to Malaysia for work purposes. If you are planning to stay in Malaysia permanently or for a few months, you would be interested in knowing the cost of living in the country. The good news is that the cost of living in Malaysia is much cheaper than most Western countries and some neighboring Southeast Asian countries like Singapore. However, expenses in Malaysia are higher than several other countries worldwide, and the difference would depend on where you come from.
When considering starting your life in Malaysia, you need to think about housing, food, health, and education if you have children. Your monthly cost of living in Malaysia would depend on the place or city you choose to live in. Cities like Kuala Lumpur, the capital of Malaysia, and Penang are more expensive than other places. The location you choose to live in would depend on where you work and where there are reputable schools (if relocating with children). With this background, let’s explore Malaysia’s cost of living further.
Look at the Cost of Living in Malaysia
1. Housing Expenses in Malaysia
When buying or renting accommodation, Kuala Lumpur is the most expensive location. If seeking a house in the city center, expect to pay approximately 5,000-6,500 RM for a two-bedroom property. In comparison, a two-bedroom apartment or condominium would cost 2,000-4,500 RM per month. However, if a central location is unimportant, two-three bedroom apartments are available for 1,500-2,000 RM. Singles can share an apartment to save money. Families with spare rooms can generate income by renting them out, especially to students.
Outside of Kuala Lumpur, housing is cheaper. A high-end two bedroom condo in Penang costs 3,000-5,000 RM per month. In contrast, a simple apartment can be found for 1,000 RM or less. Other major cities like Johor Bahru, Ipoh, and Malacca have comparable rates. Small rural towns and villages offer the most budget friendly accommodation. Basic single bedroom flats rent for 300-800 RM per month. Shared housing with locals cuts costs further. This is why cost of living in Malaysia for single person is relatively low.
Owning property has become expensive in Malaysia. Before buying, recognize that foreigners cannot purchase land and require approval to acquire housing valued over 1 million RM. Condos in Kuala Lumpur average 500,000-1,500,000 RM. Landed property is 5x higher per square foot compared to condos. Therefore, renting is the most realistic option for new expats.
2. Food Costs in Malaysia
Food expenses vary depending on eating at home versus dining out. Groceries and household items range from 100-200 RM per month per person. There are also expensive restaurants that inflate costs. A mid-range restaurant meal for two is approximately 230 RM. However, delicious cheap food is readily available for those uninterested in frills.
Hawker centers sell incredible local specialties at affordable prices. These open-air complexes house dozens of food stalls offering Chinese, Malay, and Indian fare. Complete meals with drinks rarely exceed 15 RM. Hawker fare is safe and clean. Therefore, don’t be afraid to indulge in Satay, Nasi Lemak, Char Kway Teow, Laksa, and other iconic dishes.
Grocery shopping is reasonable at stores like Jaya Grocer, Tesco, and AEON Big. Bulk basics like rice, noodles, vegetables, fruits, dairy products, meats, and household items are cheap. Imports like cheese, wine, packaged goods do cost more compared to America or Europe. Furthermore, organic produce and specialty products have spiked in price recently due to inflation and supply chain disruptions.
3. Utility Expenses in Malaysia
Apart from housing and food in Malaysia, utilities like electricity, water, cable, internet are mandatory living expenses. While prioritizing needs over wants and cost cutting can save money, expect to budget 300-400 RM per month for these services. Electricity is government subsidized for locals but not foreigners. Internet packages range 80-150 RM monthly with speed and data caps increasing rates. Cell phone plans with data average 100 RM monthly through providers like Celcom, Maxis, Digi.
4.Education Costs in Malaysia
Education is a major expense for expat families relocating with school-aged children. Fortunately, most major Malaysian cities offer reputable international schools catering to expat students. Institutions like Alice Smith School and Garden International School in Kuala Lumpur follow American/British curriculums preparing students for universities worldwide.
However, tuition is steep with annual fees ranging 30,000-80,000 RM per child depending on age. Additional expenses like books, transportation, uniforms, activities can add 10,000-15,000 RM yearly per student. In total, budget 50,000-100,000 RM to cover international school costs.
Some expat families choose to enroll children in private Malaysian schools instead. These schools follow the national curriculum taught in Malay and English. Tuition is vastly cheaper, approximately 15,000 RM annually. However, this route is only suitable for children already fluent in English given Malaysian school’s focus on the language.
5. Healthcare Expenses in Malaysia
Malaysia boasts advanced healthcare rivalling facilities in America and Europe. Most doctors working at the healthcare facilities in Malaysia complete medical training and specialization abroad before returning home. Hence, physician quality matches top hospitals worldwide. Procedures and treatment cost a fraction of prices in Western nations. Without insurance, expect to spend:
- Doctor Visit: 30-100 RM
- Hospital Stay: 300-500 RM per day
- Routine Care: Affordable compared to USA/UK
- Dentistry: 20% of developed world prices
Therefore, Malaysia’s healthcare system balances quality and cost efficiency exceptionally well. The convenience and lower expense make it straightforward to maintain health.
However, insurance is still essential to hedge against accidents, emergencies, and illnesses requiring intensive care. Local Malaysian policies only cover basic inpatient and outpatient treatment. For comprehensive protection, expatriates must enroll in international health plans instead. Reputable insurer like Cigna and Aetna offers packages covering:
- In/Outpatient Care
- Emergency Evacuation
- Pre-Existing Conditions
- Maternity
- Dental/Vision
- Vaccinations
Comprehensive international health coverage averages 500-1,500 RM monthly based on age. Those amounts exceed local private insurance pricing (200-400 RM) but deliver vital financial protection from healthcare catastrophes. Ultimately, your health is invaluable, so this segment of your Malaysia budget ensures you and your family can access top-notch care.
6. Lifestyle Inflation in Malaysia
Your cost of living ultimately depends on the lifestyle you adopt. Lavish luxuries like frequent fine dining, imported wine, European vacations, luxury vehicles all drain funds rapidly. Practicing moderation while allowing occasional indulgences keeps entertainment expenses reasonable.
Fortunately, Malaysia offers many free and affordable things to do like:
- Hiking
- Beach Days
- Site Seeing
- Markets
- Parks
- Shopping Malls
- Hawker Centers
Saving money requires resisting temptation from excessive materialism. Live below your means and avoid financing wants with credit cards or loans. Though Malaysia has a relatively low cost of living, remaining prudent with non-essential expenditures keeps you financially healthy.
Bottom Line
If living in Malaysia seems enticing after reviewing typical costs, complete a Malaysia visa application to make the move officially. As an expatriate, you can secure residence permits allowing stays lasting 6-12 months that are renewed periodically. Top areas for expatriates include Kuala Lumpur, Penang, Ipoh, Malacca, and Johor Bahru.
Upon arrival, take time exploring this diverse country stretching from bustling metropolises to idyllic tropical islands. The low cost of living affords opportunities to travel within Malaysia and surrounding Southeast Asia comfortably. Though adapting to this new homeland has challenges, life here brings rich rewards.