-
Sohaib Ikram
Sohaib Ikram serves as the Director of Emerhub in Malaysia.
With living costs significantly lower than in the US and UK, Malaysia offers strategic business hubs, modern infrastructure, and an affordable lifestyle, making it an ideal destination for expatriates and foreign businesses. The country’s zero tax policy on foreign-sourced income (extended until 2036) also adds to its appeal for investors.
Whether you’re an entrepreneur setting up a company, a retiree, or a digital nomad, moving to Malaysia will come with its own sets of challenges. Still, with the right approach, this can be managed with ease. This guide covers key locations, the available visa options, and essential considerations to help you plan your move to Malaysia.
Essential Considerations to Prepare for Your Move to Malaysia
Choosing the Right City in Malaysia for Business and Lifestyle
Malaysia is known for its affordability, with an average monthly budget of around USD 1,200 to USD 1,500 for a single person, including rent for a modern 1-bedroom condo (typically USD 400 to USD 700 in major cities). This cost-effectiveness, combined with Malaysia’s diverse urban centers, makes it a practical choice for entrepreneurs and professionals looking to establish a business or enjoy a balanced lifestyle.
Each city in Malaysia offers distinct advantages depending on your professional and lifestyle needs. Here are some key considerations:
- Kuala Lumpur– The financial and corporate center, ideal for multinational businesses, startups, and professionals. It offers modern infrastructure, global connectivity, and a vibrant expat community.
- Penang– A technology and manufacturing hub, home to the Bayan Lepas Free Industrial Zone. Its mix of heritage charm and business-friendly policies attracts both entrepreneurs and skilled professionals.
- Johor Bahru– Strategically located near Singapore, benefiting from tax incentives in the Iskandar Malaysia economic zone.
- Langkawi– A duty-free island with strong potential in tourism and hospitality investments, perfect for those looking to establish businesses in travel, leisure, or luxury real estate.
How to Set Up Banking and Manage Finances as an Expat in Malaysia
Opening a personal bank account requires a long-term visa, a valid passport, and proof of residence. Some banks may also require a copy of your employment contract, tax identification number, or a reference letter. Leading banks that cater to expatriates include Maybank, CIMB, and HSBC.
For business owners, however, a corporate bank account is necessary for transactions and tax compliance. Your company must register with the Companies Commission Malaysia (SSM) and comply with a 24% corporate tax and applicable sales and service tax (SST) charges.
Healthcare and Insurance Options for Expats in Malaysia
Malaysia’s healthcare system includes both public and private hospitals, with expatriates generally preferring private healthcare due to shorter wait times and English-speaking staff.
Typically, private health insurance plans start at USD 50 per month, offering premium medical care at significantly lower costs than in Western countries. Health insurance isn’t legally required in Malaysia. However, having an international or local plan ensures peace of mind and access to Malaysia’s world-class medical facilities whenever needed.
Choosing the right coverage also depends on where you settle in Malaysia– some states offer better access to top-tier hospitals and specialized care. Emerhub’s relocation experts can help you navigate both, ensuring you find the best insurance plan and location to match your lifestyle and business goals.
Choosing the Right Visa or Pass for Your Stay in Malaysia
Short-Term Visas for Non-Residents
If you’re visiting Malaysia for short-term engagements such as tourism or attending business meetings, or if you want to first visit a few locations before planning your move, there are several short-term visa options available:
| Visa Type | Details | Requirements |
| Single Entry Visa (SEV) | – Valid for 30 to 90 days. – For business meetings, conferences, or short-term visits. – Expires upon exit. | Passport, return ticket, proof of sufficient funds |
| Multiple Entry Visa (MEV) | For frequent travelers such as business professionals, allowing a maximum 30-day stay over a specified period. | Passport, proof of business activities, financial records |
| Visa on Arrival (VOA) | – Does not require pre-application – Up to 30 days; only available for select nationalities, non-extendable. – Mainly for tourism and short business visits. | Passport, proof of onward travel, hotel booking |
It’s important to note that these visas don’t allow employment or long-term stays. If your goal is to work, start a business, or settle in Malaysia for an extended period, you’ll need to apply for a work or residency pass instead.
Work Passes for Employment and Business in Malaysia
While citizens of many countries, including the U.S. and U.K., can enter Malaysia visa-free for up to 90 days, staying beyond this period requires a proper visa or pass. The country offers several work passes designed for foreign professionals, entrepreneurs, and digital nomads:
| Visa Type | Details | Requirements |
| Employment Pass (EP) | – The primary work visa for foreign professionals hired by Malaysian companies. – Valid for 1 to 5 years. – Issued in three categories (category I, II, and III) based on salary and contract terms. | – Job offer from a Malaysian company – Meets salary threshold for the specific category – Employer sponsorship |
| Professional Visit Pass (PVP) | – For foreign professionals on short-term assignments with a Malaysian company. – Valid for up to 12 months. | Temporary work contract with a Malaysian company |
| Digital Nomad Visa (DE Rantau Pass) | – For remote workers and freelancers. – Valid for 3 to 12 months, renewable for an additional year. | – Proof of remote work contract – Minimum income requirement, depending on industry. |
| Malaysia Tech Entrepreneur Program (MTEP) Pass | – A dedicated pass for startup founders and investors in the tech industry, offering long-term residency for business development. – Valid for 1 to 5 years. | – Business plan – Investment proof – Letter of Good Conduct |
Secure Residency with Malaysia’s Long-Term Visas
If you’re planning to live in Malaysia beyond a temporary work contract or business visa, the country offers various long-term residency programs. These visas cater to retirees, investors, skilled professionals, and family dependents:
| Visa Type | Details | Requirements |
| Malaysia My Second Home (MM2H) | – For retirees and wealthy investors seeking long-term residence. – Available in three categories with varying visa durations. – Valid for 5 to 20 years. | – Financial proof. – Fixed deposit (between USD 150,000 and USD 1mil). – Minimum stay requirements (90 days). – Letter of Good Conduct. |
| Premium Visa Program (PVIP) | – For high-net-worth individuals, investors, and professionals seeking long-term residence. – Valid for up to 12 months. | – Fixed deposit of RM 1mil with no withdrawals in the first year. – Proof of foreign income. – Letter of Good Conduct. |
| Residence Pass-Talent (RP-T) | – For highly skilled foreign professionals with expertise in key sectors. – Valid up to 10 years. | – Employment Pass of more than 3 months validity. – Must have worked in Malaysia for at least three (3) years at the time of application. – Employer sponsorship |
| Dependent Pass | – For spouses and children of Employment Pass, RP-T, or MM2H visa holders. – Validity tied to sponsor’s visa. | – Sponsorship by a valid pass holder. – Proof of relationship (marriage/birth certificate). |
| Spouse Visa (Long-Term Social Visit Pass) | – For foreign spouses of Malaysian citizens. Allows work without an Employment Pass. – Renewable every 1 to 5 years. | – Marriage certificate and proof of relationship. – Malaysian spouse must be financially stable. |
| Student Pass | – For international students enrolled in Malaysian institutions. – Valid for the duration of the study program. | – Letter of acceptance from a recognized institution. – Proof of financial support. |
Whether you’re relocating for work, investing, or planning long-term residency, choosing the right visa is key to ensuring a smooth transition. With various visa options and requirements, navigating the process can be complex. Emerhub simplifies this by handling visa applications, company registration, and compliance, so you can focus on your move to Malaysia.
Need expert guidance? Fill out the form below and our relocation experts will get in touch with you!
FAQs About How to Move to Malaysia
While Malaysia’s public healthcare system is accessible to legal residents, including expatriates with work permits, many expats prefer private healthcare due to shorter wait times and higher-quality services. Private healthcare can be costly, so we highly recommend obtaining private health insurance to ensure comprehensive coverage.
Malaysia offers a relatively low cost of living compared to the US and UK. Expenses for housing, food, transportation, and healthcare are generally more affordable, allowing expatriates to enjoy a comfortable lifestyle at a fraction of the cost. Actual expenses can vary based on lifestyle choices and location within the country.
Yes, foreigners can buy property in Malaysia, subject to certain restrictions. They are generally permitted to purchase various types of properties, including residential units (both landed and high-rise), commercial properties, and industrial properties and land. However, they are not eligible to purchase properties built on Malay reserved land, low or medium-cost units, or properties allocated to Bumiputera groups.
Housing in Malaysia is much more affordable than in the US and UK. For example, a modern one-bedroom apartment in Kuala Lumpur’s city center rents for around RM2,000 to RM4,000 (approximately USD 450 to USD 900) per month, while a similar apartment in London or New York easily exceeds USD 2,500. Rental prices drop even further outside major cities.
If you are looking to buy a property in Malaysia, Malaysia offers competitive prices and foreign ownership options under specific conditions. Expats often prefer high-rise condominiums or gated communities for security and amenities. Our experts are ready to help you with all the key legal requirements and considerations– reach out via the form below and we’ll put you in touch!
