Can You Afford to Live in the Land of a Thousand Smiles?
Malaysia has long been a popular destination for expats thanks to its warm climate, welcoming culture, and high-quality healthcare. From vibrant cities to tropical beaches, rainforests, and mountain regions, it offers a wide range of lifestyles. However, one of the biggest draws is the cost of living in Malaysia, which is significantly lower than in many Western countries.
For expats from the U.S. or Europe, everyday expenses can be especially affordable, allowing for a comfortable lifestyle on a modest budget. If you’re considering a move, this article outlines what you can expect in terms of housing, food, transportation, and everyday expenses.
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Overall, Malaysia is considered one of the most affordable countries in Southeast Asia for expats.
While costs can vary depending on lifestyle and location, even major cities like Kuala Lumpur remain far cheaper than most Western destinations.
Everyday expenses such as rent, dining out, and transportation are significantly lower than in the U.S. or Europe, allowing you to enjoy a comfortable lifestyle without overspending.
However, imported goods, luxury housing, and private schooling can increase costs depending on personal choices.
In general, the cost of living in Malaysia is 57.5% lower than living in the U.S. Of course, the cost of living varies depending on where you decide to live, but even in the most expensive city, you will save a lot on living expenses compared to the U.S.
Many expats choose the capital city, Kuala Lumpur, though it’s the most expensive place to live in Malaysia. The Numbeo Cost of Living Indexcurrently ranks it as the 403rd most expensive city in the world.
That still makes it far more affordable than most places in the U.S. For comparison, New York is ranked 12th! The closest U.S. city in rank to Kuala Lumpur is Cleveland, at 112.
The Most Expensive and Cheapest Places in Malaysia
Given that Malaysia overall is much less expensive to live in than the U.S., Europe, and many other Asian cities, the question is more about what kind of place you want to live in.
Here are five popular destinations for expats and MM2H visa holders, ranked from most to least expensive.
1. Kuala Lumpur
Malaysia’s capital and one of the world’s most affordable major cities, Kuala Lumpur offers world-class, fast-paced city life to a large expats community.
It was also named the best city in the world for expats by Internations’ Expat City Ranking for 2022.
If you crave luxury condos, fantastic shopping, hopping nightlife, and all the other attractions of an ultra-modern Asian city, KL is where it’s at.
2. Penang
The second most popular choice for expats is Penang, especially George Town, its cosmopolitan capital city.
While much of the state is on the mainland, the majority of expats live on the island, with its excellent beaches and sea views.
The old city is a UNESCO World Heritage Site and boasts restored British Colonial buildings, Chinese temples, Indian mosques, and other influences in its distinctive architecture.
3. Johor
The southernmost state on the Malay peninsula, Johor, is an increasingly popular choice for expats.
Johor Bahru, Malaysia’s second-largest city and gateway to Singapore on the other side of the Straits of Johor, was once an unpleasant industrial backdrop to Singapore.
However, it has grown significantly in recent years and attracts tourists and expats alike with its family-friendly attractions and economic opportunities.
4. Ipoh
Known for its beautiful limestone hills and its proximity to the Cameron Highlands (where the weather is cooler), Ipoh is Malaysia’s third-largest city.
It’s also known as the cleanest city in Malaysia and among the cleanest in Asia.
While the city is sleepier than others, it’s also colorful and peaceful, with many cultural attractions.
5. Sabah
The only state on this list on the Borneo side, rather than the Malay Peninsula, is Sabah, on the northern tip, which includes many beautiful islands popular with divers.
The mainland also boasts Malaysia’s highest peak, Mount Kinabalu. Far from city life, this region is for you if you want laid-back living in a natural setting at a low cost.
The Average Cost of Living in Malaysia
To better understand the cost of living in Malaysia, it helps to break down typical expenses such as housing, food, transportation, and entertainment in major expat cities.
Below is an overview of what daily life can look like in Malaysia’s most popular destinations.
Housing Costs in Malaysia
Though Kuala Lumpur is the most expensive city in the country, housing is extremely affordable compared to the U.S. Renting an apartment in Kuala Lumpur costs about 86.1% less than renting in the U.S.
A 900-square-foot apartment in the city center costs about USD$433–$1,020 per month. In a less expensive area, you can pay as little as USD$300-$400 per month.
Need more space? A three-bedroom apartment in the center of the city will run you approximately USD$765-$2,040 per month.
For two people for one month, utilities (such as gas and electricity) cost about USD$41-$89, while Internet costs about USD$25-$33 per month. Just like rent, these prices are less than one-third of what you would pay in the USA.
The second largest expat community in Malaysia is on the scenic island of Penang. The city of George Town is smaller than Kuala Lumpur and offers a more laid-back lifestyle and fantastic beach access.
In Penang, a three-bedroom apartment costs about USD$382-$910 per month.
Food and Entertainment Costs in Malaysia
When comparing food and entertainment costs throughout Malaysia, you’ll find that prices don’t vary all that much. Generally speaking, Penang prices are about 10% lower than those in Kuala Lumpur.
Malaysia is also known as a gastronomic hub, especially famous for its delicious and abundant street food.
Heading out for a basic lunchtime meal in a business district? You’ll pay about USD$2.55-$6.12. Having a craving for a combo meal from a fast-food restaurant? Most combo meals cost about USD$4.08-$5.10.
If you like to relax and have a beer at the end of a long workday, you can expect to pay USD$1.53–4.37 for a bottle of domestic beer purchased in a supermarket.
For those who prefer to drink in a neighborhood pub, a pint of beer will cost you about USD$2.04-$7.14.
When it comes time for dinner, two people can enjoy dinner in an expat neighborhood for about USD$15.30-50.99. The country is also filled with street food vendors, where you can easily enjoy a great local meal for around USD$2.55-$6.12.
As for entertainment, two movie tickets will cost about USD$8.16-$15.30 (less than you would pay for one ticket in the United States).
For expats who want to maintain their health and fitness at the gym, you can expect to pay about USD$16-$64 per month for a health club membership for one adult.
Transportation Costs in Malaysia
Much like rent, transportation costs in Kuala Lumpur tend to be higher than in Penang. A 5-mile taxi trip in Penang costs about USD$2.87. That same ride in Kuala Lumpur will cost about USD$8.89.
Monthly transportation tickets for public transit range from USD$12.75-25.49, while a gallon of gas costs just USD$2.08–3.96.
One exception to the lower cost of living in Malaysia is the cost of a new car, which is considerably more than in the United States.
For example, a Volkswagen Golf 1.4 TSI costs about USD$43,300–$45,900 in Malaysia. In the United States, that same car costs about USD$25,800-$37,000.
Because vehicle costs are high and traffic can be overwhelming, most expats prefer to use public transportation. Luckily, the train and bus systems throughout the country are reliable and inexpensive.
Healthcare Costs in Malaysia
Malaysia has a subsidized public healthcare system that works in tandem with a private system to care for all citizens and residents.
The system provides high-quality care and continues to improve. For more information on how the Malaysian medical system works, read this detailed guide to healthcare in Malaysia.
Because the public system has long wait times, most expats choose to take out private health insurance in Malaysia and see doctors in private clinics.
Even if you choose to live in its most expensive city, the cost of living in Malaysia is very reasonable.
This makes it a great destination for many expats, especially retirees looking to keep their expenses to a minimum.
Housing costs are quite low (about 76% lower than in the U.S.), while the overall cost of living is about 58% lower. If you’re a retiree looking to stretch your savings, Malaysia is a destination well worth considering.
Whether you want the bustling city life of Kuala Lumpur or to chill out in stunning natural landscapes, Malaysia is a great place to live, where your money will go a long way.
The people are friendly, the food is phenomenal, the culture is rich, and the beaches are beautiful. And it will cost you a whole lot less to live there than in the U.S., Europe, or other Asian countries.
Kamela Hutzley is a seasoned writer and editor from New Jersey, now based in Halifax, Nova Scotia. She writes on health, education, travel, and cultural integration, holds an MFA in creative writing from Emerson College, and is a certified somatic therapist with her own practice.
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