Moving to Malaysia

Malaysia is an ideal destination for expats who are considering moving to Asia. Traditionally a country reliant on resource exports, Malaysia is beginning to expand its economy in areas such as science, tourism, commerce and medical tourism, resulting in an increase in expat employment opportunities.

The country consists of two different geographical regions separated by the South China Sea. The one region is Peninsula Malaysia, also referred to as West Malaysia. East Malaysia includes the Sarawak and Sabah region of Borneo Island and 13 diverse states.

With a vast mix of cultures and nationalities, Malaysia offers expats a lifestyle replete with first-world comforts and conveniences while its easily accessible jungles and island getaways still allow a sense of adventure.

Kuala Lumpur, the capital and largest city in Malaysia, is the financial, cultural and economic centre of the country, and a major hub for international air travel. Among the skyscrapers and Dutch architecture, KL, as it is commonly known, is packed with luxury shopping malls, quality restaurants and colourful markets. It is a melting pot of cultures and offers expats an energetic lifestyle.

Travel within Malaysia is generally cheap and easy, particularly within Peninsula Malaysia. The country has an extensive road and rail network and taxis are easy to come by in the larger cities. East Malaysia, however, is slightly less developed when compared to the mainland.

Malaysia has an affordable public healthcare system with a high standard of medical care. There are also a number of top-quality private facilities available. Additionally, Kuala Lumpur offers a range of great international schools that hold their own against neighbouring Singapore’s top-quality list.

Another key benefit to the expat lifestyle in Malaysia is the exceptional cuisine, which reflects the variety of ethnic groups present in the country, as well as its colonial past. The biggest influences come from Chinese and Indian immigrants.

Although separated into two distinct parts, Malaysia’s landscape and climate are fairly similar. The country has an equatorial climate, with the southwest monsoon from April to October and the northeast monsoon from October to February. There is a dry season from June to October, when burning is conducted in many parts of the country, which can lead to heavy pollution. Expats with respiratory problems may wish to consider this.

Malaysia is an exciting expat destination, but not without its challenges and differences. The myriad of cultures and immigrants make it a place both foreign and yet easy to adjust to. With wonderful beaches, nature hideaways and serene tea plantations, it’s easy to take a break from the city bustle over weekends.

The country is stable and eager to attract foreign businesses and investors, ensuring a warm reception for expats choosing it as their new home.

WORKING IN MALAYSIA

Although many expats view Malaysia as their ideal retirement destination, there is also a range of expat job opportunities available in the country. Kuala Lumpur, with its proximity to Singapore and lower cost of living, makes for an ideal city for both businesses and families.

The job market in Malaysia

There are a number of jobs in Malaysia in IT as well as in the teaching, diplomatic, engineering and tourism fields. Expats are also likely to find work in the banking and finance sectors, accounting and oil and gas industries.

Expats speaking a second language will have an advantage, particularly if it is Mandarin or another Asian language.

Work culture in Malaysia

The etiquette and behaviour surrounding business in Malaysia is similar to that of most Western countries. However, Malaysia is an ethnically diverse country and expats will need to prepare themselves for dealing with people from a broad range of backgrounds, the most common being Malay, Chinese and Indian. When working in Malaysia, expectations and behaviour may need to be adjusted according to the organisation and who one is dealing with.

Malaysians work approximately eight hours per day, and the working week is five or sometimes six days a week. Normal business hours are from 9am to 5pm. Malaysian labour law provides 10 days of vacation per year, but the country also has a large number of public holidays, particularly religious holidays, because of the variety of cultures and ethnicities.

Finding a job in Malaysia

The majority of expats move to Malaysia with a firm job offer and contract in place, and most often as part of an inter-company transfer.

It is very difficult to relocate to the country on a tourist visa and then seek employment. Business and work visas and permits for Malaysia are vitally important as the fines and laws regarding illegal work in the country are strict, as are those governing tax compliance. Expats wanting to work in Malaysia will need to ensure that they have the appropriate work permit. This can often be a lengthy and complicated process, but it is normally facilitated by the hiring company.

There are restrictions in place on the number of foreign employees that Malaysian companies can hire. This is probably the hardest regulation to overcome when seeking a job in Malaysia. However, once a company has convinced the government that there are no better qualified Malaysians to fill the position and that the potential employee and their position are of vital importance, then obtaining a visa and orchestrating the move should run smoothly.

It is important to negotiate a relocation package with a potential employer before signing a contract. Typical relocation packages can include airfare, international shipping costs and help with accommodation upon arrival in the country. Employers should also offer help with visas, visa costs and obtaining a work permit.

VISAS FOR MALAYSIA

All those entering Malaysia, whether for work or holiday, need to have a visa. However, nationals of some countries, including the US, Britain, Australia and South Africa, do not require a visa for entering Malaysia for short-stay tourist or business visits.

All those arriving in Malaysia should have a passport valid for at least six months and a valid return ticket.

Tourist and business visas for Malaysia

There are three different types of entry visas for Malaysia, namely single-entry, multiple-entry and transit. Nationals of some countries are able to apply for a visa on arrival, but visas should generally be applied for before departure at a relevant Malaysian embassy or consulate.

A single-entry visa is normally valid for one entry into the country and is valid for three months from the date of issue. Multiple-entry visas are issued to foreign visitors wishing to travel in and out of Malaysia a number of times, and are normally for business or official government matters. Multiple-entry visas are usually valid for a period of three to twelve months from the date of issue. Transit visas for Malaysia are for those entering Malaysia in transit to other countries.

Upon entry into Malaysia, tourists will have their passport stamped with a social visit pass, the validity of which depends on a person’s nationality. While holding the social visit pass individuals are permitted to conduct a range of activities which are listed by the authorities. However, they will not be allowed to take up employment in Malaysia.

Malaysia My Second Home Programme

The Malaysia My Second Home Programme (MM2H) was introduced by the Malaysian government as a means of allowing foreign nationals to retire or live in Malaysia on a long-term basis. The programme invites foreigners to gain residence status for the applicant as well as their family/dependents.

As part of the programme, applicants will get a ten-year visit pass and multiple-entry visa, which is renewable every ten years. Unless specific approval is sought, expats are not allowed to be employed in Malaysia under this programme.

Applicants are required to pay a fixed deposit into a local Malaysian bank; the funds must be left in the bank during the period of validity of the visa. The amount to be paid will depend on the age of the applicant. After the first year, expats can take out money to purchase housing, and for medical expenses and their children’s education, but must maintain a minimum balance, depending on their age and circumstances, in the fixed deposit account from the second year onwards and throughout their stay in Malaysia.

Permanent residency in Malaysia

Expats wishing to work and live in the country permanently can apply for residency in Malaysia if they fit into one of the following categories:

1. A high-net-worth investor with a minimum of USD 2 million in a fixed deposit in a Malaysian bank
2. An individual with exceptional skills and talent who has been approved by a relevant agency in Malaysia
3. A professional with outstanding skills in any field who has been recommended by a relevant Malaysian agency and has worked in the country for at least three years
4. An individual who has been married to a Malaysian citizen and has lived in Malaysia for at least five years
5. Those who qualify under a point-based system whereby points are given according to one’s age, qualifications, language proficiency and employment, among other things. A minimum score of 65 out of 120 is required.

WORK PERMITS FOR MALAYSIA

Expats wanting to work in Malaysia will require a work permit. Obtaining a work permit for Malaysia is often a lengthy and complicated process.

There are currently restrictions on the number of foreign workers a Malaysian company can employ. If wanting to hire foreign workers, the company will have to prove to the government that the potential employee and their position are of vital importance and the job cannot be filled by a local. The approval of the employment will be granted by different regulatory agencies in conjunction with the Immigration Department, depending on the industry and nature of work the foreigner will be undertaking. Once the approval for the appointment has been granted, the company can then begin the application process for the work permit on behalf of the expat.

Work permits generally last between six months and five years, depending on the duration of the work contract and the type of visa. Application forms are mostly in Bahasa Malaysia, and applications for Malaysian work permits are done within Malaysia.

When entering Malaysia on business or with the intention of staying on, visitors are required to have a sponsor within Malaysia. As part of the visa application process, a reference number will be issued so that it’s possible to track the progress of the application on the Immigration Department of Malaysia’s official website.

Types of work permits for Malaysia

The Malaysian government generally issues three different types of work permits:

Professional Visit Pass

The Professional Visit Pass is issued to foreigners employed by an overseas company but working with a company in Malaysia. This pass is normally appropriate for technical experts and trainees, as well as volunteers. The Professional Pass is normally valid for short periods of around six months to a year.

Temporary Employment Pass

A Temporary Employment Pass is for unskilled or semi-skilled workers in the manufacturing, agriculture, construction and services fields. The pass is normally valid for two years, with extensions available on a yearly basis. Before the work permit can be issued, quota approval needs to be granted from the Local Centre of Approval, Ministry of Foreign Affairs.

Employment Pass

An Employment Pass applies to those wanting to work in Malaysia and who have specific skills, generally in technical or managerial positions. It is usually issued for a minimum period of two years. Before the Employment Pass can be issued, the employment of the foreign worker must be approved by the Expatriate Committee or the relevant regulatory agency.

Documents required for work permit applications

Generally, the following documents are required when applying for a work permit for Malaysia:

1. Application form and letter of appointment from employer
2. Offer of acceptance letter or employment contract
3. Relevant visa application forms
4. Letter of approval from Ministry of Home Affairs
5. Original receipts of payment of application
6. Copy of employee’s passport
7. Passport photos
8. Copies of employee’s CV and qualifications
9. Letter from employer confirming they will pay salaries and tax revenues for employee
10. Proof that employer operates according to the regulatory conditions of the industry
11. Medical report from the employee’s country of origin approved by the Malaysian Ministry of Health

*Visa and work permit regulations are subject to change at short notice and expats should contact their respective embassy or consulate for the latest details.

ACCOMMODATION IN MALAYSIA

Expats can rest assured that they will have no problem in finding comfortable and affordable accommodation in Malaysia.

Types of accommodation in Malaysia

Many types of accommodation are present in Malaysia: large standalone houses, semi-detached and terraced houses, apartments, and condominiums. Generally, condominiums are most popular with expats, as they are secure and often boast highly sought-after amenities such as gyms and swimming pools.

Housing prices are reasonable throughout Malaysia, especially when included in a lucrative employment package or when financed by a large expat salary. Property in central Kuala Lumpur is generally more expensive than in any other area in Malaysia.

Completely furnished, semi-furnished or unfurnished accommodation is available. Expats are warned that ‘unfurnished’ is sometimes used more literally in Malaysia than in other countries. The term can refer to places that are completely empty, without kitchen units, stoves or even curtain rails.

Finding accommodation in Malaysia

The process of finding property in Malaysia is straightforward. Expats can engage the services of a real estate agent to help them find a suitable place to stay, or they can conduct internet searches and check local newspapers and other publications for rental listings. It’s a very good idea to view a few properties to get a sense of how much to expect to pay for a certain type of space.

Renting accommodation in Malaysia

Rental agreements are usually signed on a two-year basis, with an option to renew written into the lease. For this reason, if unable to commit with 100 percent certainty to the full two years, be sure to have a termination clause written into the rental contract.

Usually, the tenant will have to pay two months’ rent as a refundable security deposit to secure the rental. However, estate agent fees are normally paid by the landlord. The tenant will be responsible for their own water, electricity, sewerage, phone and internet bills, and might also be required to pay a deposit on these utilities before moving in.

Buying property in Malaysia

Buying property in Malaysia is becoming an increasingly attractive proposition for expats, with the Malaysian government actively looking to increase foreign investment in the property market through the Malaysia My Second Home initiative. There are some areas of the country in which expats are still not allowed to buy property, and there are also restrictions on the value of a property price in order to protect low- to middle-income Malaysians from property inflation. Loans and mortgages are available from Malaysian banks and other financial institutions.

COST OF LIVING IN MALAYSIA

The cost of living in Malaysia is relatively low compared to neighbouring countries. The main discrepancy in prices is evident when buying cigarettes, alcohol or luxury items, as Malaysia places a higher sales tax on these items.

According to the 2018 Mercer Cost of Living Survey, Kuala Lumpur ranked 145th out of 209 cities surveyed worldwide, placing it well below the cost of living of other Asian cities like Singapore, Beijing and Tokyo.

Cost of accommodation in Malaysia

Malaysia offers a range of accommodation options, and the price is highly dependent on what one is after. When looking for accommodation it is always good to inquire about the local traffic in the area, and to double check the daily routes one will take as a short distance can become a long commute during rush hour traffic. Using public transport can become a lifesaver.

Renting a two-bedroom condo in an upmarket area of Kuala Lumpur can be expensive. Accommodation in other districts is sometimes half the price one would expect to pay in central KL.

Household running costs also vary, and on top of the basic rent, expats will also need to budget for expenses such as electricity, water and gas (excluding condo fees).

Cost of electrical goods in Malaysia

Malaysia, like the rest of Asia, has a range of very cheap and good quality electrical products. Cameras, computers and mobile phones are all inexpensive, and expats will find that the range of products available is hard to beat. There are often sales and special deals, particularly around religious holidays, so shopping around does have its rewards.

Cost of food and eating out in Malaysia

Food prices are generally quite low, particularly if buying local products. Malaysia has a fine range of cuisine from across the world, and this is reflected in the many types of restaurants available. Street food in Malaysia is a great experience and provides for a cheap night out; even restaurant meals can be reasonable. Alcohol is expensive, though, so drinks can increase the meal bill substantially.

Expats moving to Malaysia are sure to enjoy the local markets where they can dine on street food, which is often better, and definitely cheaper, than a sit-down meal. The markets have a range of other products and expats will also be spoiled for choice in the modern malls dotted around Malaysian cities. New arrivals will soon find that the Malaysian shopping experience can pose a threat to a healthy bank balance.

Cost of living in Malaysia chart

Note that prices may vary depending on product and service provider and the list below shows average prices for Kuala Lumpur in April 2019.

BANKING, MONEY AND TAXES IN MALAYSIA

The Malaysian banking system is well established. Although opening a bank account can be complicated for foreigners, particularly if they don’t have the correct visa or work permit, once they have opened an account, banking in Malaysia can be easy and hassle-free for expats.

Money in Malaysia

The currency in Malaysia is the Malaysian Ringgit (MYR), divided into 100 sen (cents).

1. Notes: 1 MYR, 5 MYR, 10 MYR, 20 MYR, 50 MYR and 100 MYR
2. Coins: 5 sen, 10 sen, 20 sen and 50 sen

Banking in Malaysia

Although many expats prefer to bank with a foreign bank, such as Bank of America or HSBC, as they can link to their account in their home country, there are numerous local banking options available to expats in Malaysia. The central bank is Bank Negara Malaysia, while local banks include Bank Islam Malaysia, Bank Muamalat Malaysia, CIMB Bank, Public Bank Berhad and RHB Bank.

Once an expat has an account, banking becomes simple. Malaysian banks have all the services customers have come to expect, including internet and mobile banking.

Banking hours are generally Monday to Friday, 9.30am to 4pm, and Saturdays from 9.30am to 11.30am.

Taxes in Malaysia

With a relatively low income tax rate and few other taxes, Malaysia is an incredibly tax-friendly country. Malaysian tax law divides potential taxpayers into three categories: residents, non-residents and pensioners.

1. Residents are those who have stayed in the country for longer than 182 days. People who fall into this category are liable to pay income tax. The income tax rate varies according to the amount of income. There are a number of different tax groups, ranging from 0 to 28 percent.
2. Non-residents, or those that stay in Malaysia for less than 182 days, are taxed at a flat rate of 28 percent.
3. The third group consists of people over the age of 55 years who are employed in Malaysia for less than 60 days in a year. People in this group either receive a Malaysian pension or live on interest from banks. People in this group are exempt from paying tax.

Many expats choose to go to Malaysia under the Malaysia My Second Home (MM2H) programme. These expats are required to pay tax on any income made in Malaysia. However, they are not required to pay tax on income or pension funds generated abroad.

Malaysia has tax agreements with a number of countries in order to avoid foreigners having to pay double taxation. Expats should investigate whether Malaysia has such an agreement with their home country.

TRANSPORT AND DRIVING IN MALAYSIA

Malaysia has an extensive transport system. The Klang Valley, which consists of Kuala Lumpur, its surrounding suburbs and adjoining towns and cities, has an integrated public transport system incorporating the Light Rail Transit (LRT), monorail, railway and bus services. Taxis are available in urban centres, and a number of ferries operate between the Malaysian mainland and nearby islands and neighbouring countries.

It is easy to transfer from one mode of public transport to another in Kuala Lumpur with a MyRapid Card. This card can be purchased and money is loaded onto it for bus and rail use. The card gives unlimited travel on the RapidKL buses, LRT lines or KL Monorail and can be loaded for weekly or monthly travel.

Public transport in Malaysia

Trains

Malaysia has an affordable and reliable national rail service. Long-distance trains operate around Peninsula Malaysia, with trains running from north to south between the Thai border and Singapore. The main western line connects Butterworth, Ipoh, KL and Johor Bahru with the eastern line that runs through Gua Musang and the Taman Negara National Park to Kota Bharu near the Thai border.

Kuala Lumpur has an extensive city rail system consisting of two Light Rail Transit lines, a monorail line, two commuter rail systems and an airport rail link. The LRT is the most reliable form of public transport in KL. It does, however, get very crowded, especially at rush hour.

Trains in Kuala Lumpur are integrated into the bus system, which makes it easy to transfer from one system to another. It also means that commuters don’t have to pay separate fees when moving from the railway onto a bus route.

Ferries

Ferries connect various points in Peninsula Malaysia with Indonesia, southern Thailand, Brunei and the Philippines. A number of luxury cruise liners also have routes from Singapore and Thailand to Malaysia.

Taxis in Malaysia

Taxis operate in most Malaysian cities, but can be expensive compared to other transport options. Most are unmetered, so it’s best to negotiate the fare with the driver before getting in the vehicle. There are also a number of ride-hailing services in Malaysia, whereby travellers can call a taxi to their location immediately using a smartphone application.

Buses

There is an extensive and inexpensive bus system running through Malaysia. Most towns have a bus terminal offering connections to other parts of the country, and there are long-distance buses connecting Malaysia to Brunei, Singapore and Thailand.

Driving in Malaysia

Malaysia has an excellent highway network connecting towns and cities, and joining Malaysia with its neighbours. Although expats living in Kuala Lumpur are able to get by without owning a car, it may be necessary to have a car if living outside of the major urban centres.

Cars in Malaysia drive on the left-hand side of the road. Driving in Malaysian cities can be chaotic and is generally not recommended. Traffic congestion is a constant problem and traffic lights, and the rules of the road, are not always adhered to. Motorcyclists are often the worst culprits for reckless driving.

It is quite simple for expats in possession of a valid international driver’s licence to get a probationary driving licence in Malaysia. Expats will need a number of documents, such as their original driver’s licence, a translated script if it is not in English, a colour photograph, passport, payment and a completed application form. A work permit that is valid for more than three months is also required.

Air travel in Malaysia

It is relatively cost-effective to fly in Malaysia and due to the remote nature of some destinations within the country, flying is often the best, and only, option. Kuala Lumpur International Airport is the country’s main international airport. Other important airports in the country include Kota Kinabalu, Kuching, Penang and Langkawi. A number of airlines offer regional and international flights to and from Malaysia, including Malaysia Airlines, Firefly and Air Asia.

HEALTHCARE IN MALAYSIA

Healthcare in Malaysia is among the best in the world. This is particularly evident in the more populated areas and larger cities, such as Kuala Lumpur, but healthcare facilities can be very limited in more rural areas.

The country continues to strive to entrench itself as a medical tourism destination, offering affordable and easily accessible healthcare coverage to both locals and expats alike.

Medical facilities in Malaysia

Healthcare in Malaysia is divided into public and private. Both sectors provide high-quality medical services, with modern technology and highly skilled staff, many of whom have trained overseas. As a medical tourism destination, areas such as cardiology, ophthalmology, dentistry, orthopaedics, gastroenterology, plastic and general surgery, and screening are at the forefront of their respective fields.

Doctors’ consultations are relatively inexpensive and the standards are high; almost all doctors are able to speak English. Dentists and other specialists are equally easy to visit and consultation fees are reasonable.

Although expats have access to Malaysian public hospitals, many still choose to use private facilities.

Health insurance in Malaysia

Malaysia does not have a national health insurance scheme, but in 2011 the government introduced the Foreign Worker Hospitalisation and Surgical Insurance Scheme, making it compulsory for foreign workers in Malaysia to have medical insurance. Foreign employees are expected to cover the costs for the medical insurance coverage, which sees them getting a fixed amount of medical care each year in government hospitals. A number of companies are contracted to the scheme so expats have a choice when it comes to their insurance provider.

Expats preferring private healthcare should also consider investing in comprehensive private medical insurance. International health insurance companies offer a variety of packages for the expat market in Malaysia. However, it is also possible to shop around in the country and local rates are available with some companies. It is also relatively easy to visit doctors and specialists in both Bangkok and Singapore.

Medicines and pharmacies in Malaysia

Malaysia is not short of pharmacies, which can be found in most shopping centres. Most pharmacies are well-stocked and some drugs that require a prescription overseas do not require prescriptions in Malaysia. Others may ask for a local doctor’s prescription note. Opening times for pharmacies vary, with some in major cities being open till late.

Health hazards in Malaysia

Malaysia suffers from high levels of pollution due to smoke haze, particularly from June to October. Health warnings are regularly issued by the Malaysian government. Pollution can be problematic for expats with respiratory health problems and it’s best to monitor local news about the situation and adhere to any advice issued by the local authorities.

Dengue fever outbreaks are not uncommon in Malaysia, including in Kuala Lumpur and other urban areas, and expats should ensure they take adequate precautions to prevent mosquito bites. The risk is highest during the rainy seasons.

Emergency services in Malaysia

Private ambulance services in Malaysia offer fast and efficient emergency services. The emergency number in Malaysia is 999, or 112 from a mobile phone.

EDUCATION AND SCHOOLS IN MALAYSIA

Education in Malaysia is of a high standard and expat parents should not struggle to find a school for their child.

Admission into schools may vary depending on the type of school. Generally, schools in Malaysia can be classified into three categories: public schools, private schools and international schools.

Public schools in Malaysia

Public schools in Malaysia are in abundance and the tuition fees are low as most are supported by the government.

Study time for public schools usually starts at 7.30am and ends around 12.30pm to 1pm. Many public schools run on a two-session system, with one session in the morning and another in the afternoon. This is to accommodate the high number of students. Facilities in public schools are adequate and have most of the basic items needed for education, but student-to-teacher ratios can be quite high, with 40 to 50 students in a class.

As an expat coming to Malaysia, the public school option should be the least costly. However, some major deterrents are the language barrier as well as the bureaucratic registration process for foreign students.

Private schools in Malaysia

There are a number of good private schools in Malaysia, but they are known to be expensive. Private schools usually practice three terms per year, with three major exams each term. All private schools use English as the main language of tuition. Classes generally run from around 8.30am to 4pm.

As with the public schools, private schools follow the guidelines and rules set by the Malaysian Ministry of Education.

Most expat children settle into private schools quite easily as they are less likely to struggle with the culture shock that they may experience at a public school. The teachers are also usually well trained and have ample experience in communicating effectively and handling students from different cultures and backgrounds.

International schools in Malaysia

Expats who wish to have their children educated in the curriculum of their home country or a country other than Malaysia should consider an international school.

Most international schools in Malaysia are based in Kuala Lumpur. These schools usually maintain the culture, primary teaching language and teaching methodologies and curriculum of their country of origin. The most prominent schools in Kuala Lumpur adhere to the English National Curriculum, with many schools also offering the International Baccalaureate programme.

Enrollment in an international school in Malaysia is expensive and may not be the best option for some expat budgets.

In these international schools, students will not only avoid the culture shock that they might encounter at public schools, they will also get the opportunity to socialise with classmates from their home country.

Admission into an international school is easier than admission into a public school. This is because the fees are not subsidised by the local government and, most of the time, can be easily done at the school itself.

2022 © The above information mentioned is as per the research done by “Universal Ally” the accuracy of the information may change according to the change in the market, we do not accept any responsibilities for loss or inconvenience to any person as a result of information contained above.