INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)
ISSN No. 2454-6186 | DOI: 10.47772/IJRISS | Volume IX Issue X October 2025
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An Overview of Cost-Related Factors Positioning Malaysia as a
Competitive Retirement Destination
Mohd Sufian Ab Kadir*, Maz Izuan Mazalan**, Anidah Aziz*, Siti Mariam Ali*, Norashikin Adam*,
Sumayyah Shaidin***
*Faculty of Business and Management, University of Technology MARA, Melaka Branch, Alor Gajah
Campus, 78000 Alor Gajah Melaka
***Academy of Language Studies, University of Technology MARA, Melaka Branch, Alor Gajah
Campus, 78000 Alor Gajah Melaka
*Corresponding author
DOI: https://dx.doi.org/10.47772/IJRISS.2025.910000348
Received: 12 October 2025; Accepted: 20 October 2025; Published: 12 November 2025
ABSTRACT
This study explores the cost of living as a critical indicator for positioning Malaysia as the world's best
retirement destination, focusing on three key components: utilities expenses, medical costs, and the Malaysia
My Second Home (MM2H) programme. Malaysia has garnered global attention for its relatively low living
expenses, quality healthcare, and favorable residency schemes for foreign retirees. Through a mixed-methods
approach, the research integrates quantitative data analysis of current living costs with qualitative insights
gathered from expatriate retirees and policy stakeholders. Utility expenses in Malaysia remain affordable, with
subsidized electricity, water, and internet services providing retirees with cost-efficient living standards.
Medical costs are significantly lower than in many Western countries, yet the nation maintains internationally
accredited hospitals and skilled healthcare professionals, supporting Malaysia's medical tourism appeal.
Additionally, MM2H offers structured visa tiers that attract retirees with various financial capabilities,
contributing to long-term residency security and investment potential. The expected conclusion is that
Malaysia's competitive cost of living, combined with its healthcare quality and strategic retirement visa
policies, solidifies its position as a top-tier retirement destination, especially for middle- to upper-income
retirees seeking affordability without sacrificing lifestyle quality.
Keywords: retirement destination, medical cost expenses, utilities cost expenses and initiative government
INTRODUCTION
Malaysia, located strategically in Southeast Asia, is increasingly recognized as one of the best places in the
world for tourism, investment, retirement, and cultural experience. Known for its unique blend of modern
cities, pristine beaches, lush rainforests, and rich cultural diversity, Malaysia offers a high quality of life at a
relatively low cost of living. The country's political stability, well-developed infrastructure, and multilingual
population contribute to its appeal to both visitors and expatriates (World Bank, 2023). Additionally,
Malaysia's healthcare system ranks among the top in the region, attracting medical tourists from around the
globe (Malaysia Healthcare Travel Council [MHTC], 2022). With its year-round tropical climate, vibrant
cuisine, and warm hospitality, Malaysia continues to be acknowledged as a top destination by international
surveys and global indices, such as the International Living Annual Global Retirement Index, which regularly
features Malaysia among the top retirement havens worldwide (International Living, 2023).
INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)
ISSN No. 2454-6186 | DOI: 10.47772/IJRISS | Volume IX Issue X October 2025
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LITERATURE REVIEW
Retirement Destination of Malaysia (Rdm)
Malaysia has increasingly emerged as a top-tier retirement destination, appealing to international retirees with
its affordability, healthcare quality, cultural richness, and strategic government policies. Positioned in
Southeast Asia, Malaysia offers a tropical climate, political stability, and a modern infrastructure network, all
of which contribute to its growing popularity among expatriate retirees. In recent years, international
retirement indices have consistently ranked Malaysia favorably, highlighting its appeal in comparison to other
global destinations (International Living, 2024). A key factor attracting retirees is Malaysia's relatively low
cost of living. Retirees can enjoy a comfortable lifestyle in Malaysia at a fraction of the cost required in
Western countries. Essentials such as housing, transportation, and food are reasonably priced, making it easier
for retirees to stretch their pensions or savings (Global Retirement Index, 2024). Moreover, the favorable
currency exchange rate for many foreigners further enhances their purchasing power, ensuring financial
security and peace of mind in retirement.
Another significant attraction is Malaysia’s high-quality and affordable healthcare system. The country has
built a strong reputation in medical tourism, with world-class private hospitals staffed by English-speaking
medical professionals. These services are often delivered at a lower cost than those in Europe or North
America, without compromising quality (Mohamed & Abd Karim, 2023). The accessibility of healthcare is a
crucial consideration for retirees, especially as health needs typically increase with age. Cultural diversity and
widespread use of English further ease the transition for foreign retirees. Malaysia is home to a harmonious
blend of Malay, Chinese, Indian, and indigenous cultures, offering retirees a vibrant social environment and
rich culinary experiences. English is widely spoken, particularly in urban and tourist areas, minimizing
language barriers and enabling easier integration (Yusof & Mustapha, 2022). This cultural openness enhances
the quality of life and fosters a welcoming atmosphere for newcomers. In addition, the low cost of living and
tax-friendly policies make it possible for retirees to enjoy a higher quality of life on a moderate income in
Malaysia.
Finally, the Malaysian government supports retirement migration through the Malaysia My Second Home
(MM2H) program. This long-term visa initiative allows qualified foreigners to reside in the country with
access to local privileges, including the ability to buy property and access healthcare. As the global population
ages, Malaysia’s proactive policies and attractive living conditions are likely to strengthen its position as a
leading retirement destination in the coming decades (Tourism Malaysia, 2024).
Healthcare Cost Expenses (Mce)
Healthcare affordability remains a critical concern for individuals and governments worldwide, particularly in
the face of rising medical expenses and aging populations. Amid these global challenges, Malaysia has
emerged as a prominent destination for affordable yet high-quality healthcare services. Recognized for its
competitive pricing, modern medical infrastructure, and skilled healthcare professionals, Malaysia continues to
attract international patients seeking cost-effective treatment options. The country's ability to provide excellent
medical care at a fraction of the cost compared to many Western nations has positioned it as a leader in the
global healthcare tourism industry.
Malaysia's healthcare system is distinguished by its dual public-private structure, which enables a balance
between accessibility and specialization. While public healthcare remains heavily subsidized for citizens,
private healthcare facilities cater to both locals and international patients, offering faster services and high
standards of care. According to the Malaysia Healthcare Travel Council (MHTC), foreign patients can expect
savings of up to 60–80% on treatments such as orthopedic surgery, cosmetic procedures, and cardiology when
compared to the United States or Europe (MHTC, 2023). This substantial cost differential does not come at the
expense of quality, as many Malaysian hospitals are internationally accredited and equipped with advanced
medical technologies.
INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)
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The affordability of healthcare in Malaysia is further enhanced by the country's relatively low cost of living
and favorable exchange rates for international visitors. In addition, English is widely spoken among healthcare
professionals, reducing communication barriers and contributing to the country's appeal as a medical tourism
hub. A report by the International Medical Travel Journal (2022) highlighted Malaysia as one of the top
countries for medical tourism due to its cost efficiency, with patients citing significant savings on procedures
such as dental work, fertility treatments, and health screenings.
Table 1: Healthcare service price in Malaysia 2025
Service Type Public Hospital (Low-
Cost)
Private Hospital
(Moderate-Cost)
International Clinic (High-
Cost)
General
Consultation
RM5 – RM50
(€1 – €10)
RM80 – RM250
(€17 – €52)
RM250 – RM600
(€52 – €125)
Specialist
Consultation
RM50 – RM150 (€10 –
€31)
RM250 – RM600
(€52 – €125)
RM500 – RM1,200 (€104 –
€250)
Pediatric
Consultation
RM10 – RM80
(€2 – €17)
RM200 – RM500
(€42 – €104)
RM400 – RM1,000
(€83 – €208)
CT Scan / MRI RM100 – RM500 (€21
– €104)
RM1,500 – RM4,000 (€312
– €833)
RM3,000 – RM8,000 (€625 –
€1,666)
Source: https://alea.care/resources/cost-health-malaysia
In Malaysia, the cost of healthcare services varies significantly depending on the type of medical facility, with
public hospitals offering the most affordable options, followed by private hospitals, and then international
clinics catering to premium clients. Generalist consultations at public hospitals are the least expensive,
typically ranging from RM5 to RM50 (approximately 1 to 10 Euros), while private hospitals charge between
RM80 and RM250 (around 17 to 52 Euros). At international clinics, the same service can cost between RM250
and RM600 (52 to 125 Euros).
Specialist consultations show a more pronounced price gap. In public hospitals, they range from RM50 to
RM150 (10 to 31 Euros), while private hospitals charge between RM250 and RM600 (52 to 125 Euros).
International clinics, often targeting expatriates and medical tourists, offer these services at a premium rate of
RM500 to RM1,200 (104 to 250 Euros). For pediatric consultations, public healthcare facilities charge
between RM10 and RM80 (2 to 17 Euros), which is significantly lower than the RM200 to RM500 (42 to 104
Euros) charged by private hospitals. International clinics, again the most expensive, charge between RM400
and RM1,000 (83 to 208 Euros). When it comes to advanced diagnostic imaging such as CT scans or MRIs,
the disparity becomes even more evident. Public hospitals offer these services at a relatively affordable rate of
RM100 to RM500 (21 to 104 Euros). In contrast, private hospitals charge between RM1,500 and RM4,000
(312 to 833 Euros), while international clinics may charge as much as RM3,000 to RM8,000 (625 to 1,666
Euros). This comparison highlights the significant differences in healthcare costs across various types of
medical facilities in Malaysia, making public healthcare the most accessible option for the general population,
while private and international clinics cater to those seeking faster service, more amenities, or specialized care.
Moreover, Malaysia’s government actively supports the development of medical tourism through strategic
policies, incentives, and marketing campaigns. Initiatives led by the Ministry of Health and MHTC aim to
maintain high standards while making healthcare more accessible to international patients. For instance,
Malaysia’s hospitals frequently receive certifications from international bodies such as the Joint Commission
International (JCI), ensuring adherence to global healthcare standards (MHTC, 2023). These developments
reflect the nation’s commitment to maintaining affordability without compromising quality. Many private
hospitals are internationally accredited and offer services at a fraction of the cost compared to Western
countries (Mohamed & Yazid, 2021). Furthermore, English is widely spoken among medical professionals,
INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)
ISSN No. 2454-6186 | DOI: 10.47772/IJRISS | Volume IX Issue X October 2025
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Page 4234
which reduces communication barriers for foreign retirees. The country’s commitment to medical tourism also
ensures that its healthcare system continues to improve and remain competitive on a global scale.
Other countries of popular retirement destination, Portugal has a good access for healthcare quality that
provided by government and private. According to Portugal Country Health Profile 2023, countries under Euro
Union (EU) have broad coverage for core services and good primary-care emphasis; high life expectancy
supports good outcomes for older adults such as Portugal take makes Portugal attractive if accessible, high-
quality public healthcare is a priority to the citizen. the Portuguese government has announced the launch of
medical officers in the year of 2024 that introducing a training programme offering salary and housing
incentives to medical professionals who choose to practice in hospitals in the less densely populated areas of
inland Portugal.
Figure 1.0 Portugal allocates the greatest shares of its health budget to outpatient care among EU countries.
Source: Portugal: Country Health Profile 2023, State of Health in the EU
Based on the figure above, government of Portugal spent EUR 2,630 PPP per capita in outpatient care (EUR
1,172 PPP per capita), inpatient care (EUR 704 PPP per capita), Pharmaceuticals and medical devices (EUR
494 PPP per capita), long term care (EUR 121 PPP per capita), prevention (EUR 83 PPP per capita) and
administration and others (EUR 55 PPP per capita). It shows that government of Portugal is concern and
careful managing the public healthcare services for public.
In conclusion, Malaysia stands out as one of the world's most affordable countries for high-quality healthcare
services. Its low treatment costs, modern facilities, government support, and internationally accredited
hospitals make it an attractive destination for both citizens and international patients. As global healthcare
costs continue to escalate, Malaysia’s model presents a compelling case for balancing cost-effectiveness with
medical excellence.
Utilities Cost Expenses (Uce)
In an increasingly globalized world where cost of living significantly affects quality of life, utility expenses—
comprising electricity, water, gas, and internet—play a crucial role in determining a country's affordability.
Among the many nations vying for cost competitiveness, Malaysia has consistently emerged as one of the
most attractive destinations for low utility costs. Its favorable pricing structure, coupled with government
subsidies and effective infrastructure management, makes it particularly appealing to both locals and
expatriates.
Malaysia’s electricity tariffs, for example, are among the lowest in Southeast Asia. According to the
International Energy Agency (2023), Malaysia maintains competitive rates through a combination of domestic
fuel resources and regulatory frameworks that support affordable pricing. Furthermore, Tenaga Nasional
Berhad (TNB), the national electricity provider, offers a tiered pricing model that benefits low and moderate
usage households. This structure not only encourages energy conservation but also ensures affordability for the
majority of the population. Water supply in Malaysia is also notably inexpensive, supported by government
oversight and natural freshwater availability. The National Water Services Commission (SPAN) regulates
INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)
ISSN No. 2454-6186 | DOI: 10.47772/IJRISS | Volume IX Issue X October 2025
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water tariffs, ensuring that rates remain affordable while maintaining service quality. According to the
Ministry of Natural Resources, Environment and Climate Change (2022), average household water bills in
Malaysia are significantly lower than those in most developed nations, often costing less than RM10
(USD2.10) per month for regular usage.
Internet and telecommunications services have similarly followed a downward pricing trend, driven by
government-led digital initiatives and competition among providers. As reported by the Malaysian
Communications and Multimedia Commission (MCMC, 2022), the cost of broadband in Malaysia has
decreased by over 50% in the past five years, aligning with the national agenda to enhance digital inclusivity
and economic competitiveness. This commitment makes digital utilities not only affordable but also accessible
across urban and rural communities.
In summary, Malaysia stands out as a global leader in utility cost efficiency. With proactive government
policies, abundant natural resources, and well-managed infrastructure systems, the country offers residents an
affordable and sustainable lifestyle. These advantages make Malaysia an appealing choice for individuals
seeking to optimize their living expenses without compromising on service quality.
Initiative By Government (Ibg)
In recent years, Malaysia has steadily gained recognition as one of the world’s most attractive retirement
destinations, particularly among expatriates seeking a balance between affordability, modern amenities, and
cultural richness. Strategically located in Southeast Asia, Malaysia offers a tropical climate, a relatively low
cost of living, and a high standard of healthcare—key factors that appeal to retirees. As the global senior
population increases, retirees are exploring countries that not only stretch their savings but also provide
comfort and quality of life. Malaysia is increasingly standing out in this regard.
Malaysia’s government has played an active role in encouraging international retirement through programs
such as Malaysia My Second Home (MM2H), which allows foreigners to reside in the country on a long-term
visa with various incentives (Ministry of Tourism, Arts and Culture Malaysia, 2023). This initiative, coupled
with political stability and modern infrastructure, has positioned Malaysia as a leading contender in global
retirement rankings. According to International Living (2024), Malaysia ranked among the top 10 retirement
destinations due to its healthcare quality, ease of residency, and low property prices as shown below:
Table 2: Requirement for foreigner under MM2H scheme.
Tier Fixed Deposit Requirement Property Purchase
Requirement
Visa Duration & Benefits
Silver USD 150,000 Minimum RM 600,000 5 years visa
Gold USD 500,000 Minimum RM 1 million 15 years visa
Platinum USD 1,000,000 Minimum RM 2 million
(work/investment allowed)
20 years visa; eligibility for
Permanent Residency (PR)
SEZ/SFZ From USD 65,000 (younger
applicants) or RM 500,000
(family)
State-specific thresholds Around 10 years visa, varies
by special zones
Source: https://www.imidaily.com
The Malaysia My Second Home (MM2H) programme offers several tiers with varying requirements and
benefits to attract foreign residents, investors, and retirees. Under the Silver tier, applicants are required to
place a fixed deposit of USD 150,000 and purchase a property worth at least RM 600,000, granting them a 5-
year visa. The Gold tier requires a higher deposit of USD 500,000 and a minimum property investment of RM
1 million, offering a 15-year visa. For those seeking long-term residence, the Platinum tier mandates a USD 1
million deposit and the purchase of property valued at RM 2 million or more, along with the added benefits of
INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)
ISSN No. 2454-6186 | DOI: 10.47772/IJRISS | Volume IX Issue X October 2025
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being allowed to work or invest in Malaysia and gaining eligibility for permanent residency after 20 years.
Additionally, there are options for Special Economic Zones (SEZ) or Special Financial Zones (SFZ), where
requirements are more flexible, especially for younger applicants or families, starting from USD 65,000 or RM
500,000 fixed deposit respectively, with property thresholds determined by state-based criteria. These
SEZ/SFZ visas are typically valid for around 10 years, offering a more regionally adaptive pathway to
residency.
In conclusion, Malaysia has emerged as a top retirement destination due to a confluence of strategic policies,
economic advantages, and lifestyle benefits. With the support of programs like MM2H and the ongoing
development of healthcare and infrastructure, Malaysia offers a compelling case for retirees looking for
comfort, affordability, and cultural enrichment. As global retirement patterns shift toward Asia, Malaysia is
well-positioned to attract and support an increasing number of international retirees.
METHODOLOGY
This study employs a mixed-methods approach, integrating both quantitative secondary data analysis and
qualitative content analysis to explore the role of cost of living in positioning Malaysia as a leading global
retirement destination. A descriptive research design guides the investigation, focusing on essential cost
components for retirees, including housing, healthcare, food, transportation, and leisure. Quantitative data is
sourced from reputable international databases such as Number, the International Living Global Retirement
Index, the World Bank, and Department of Statistics Malaysia (DOSM) for macroeconomic indicators like
inflation and exchange rates. Healthcare cost data is derived from the Malaysia Healthcare Travel Council
(MHTC). Qualitative data is collected from International Living Magazine (2023 & 2024 editions), expatriate
forums, blogs, and government white papers related to retirement policy and migration incentives.
A comparative analysis will be performed between Malaysia and five other top retirement destinations such as
Portugal, Mexico, Thailand, Costa Rica, and Panama based on across key indicators: cost of living, healthcare
/ medical infrastructure, visa/residency, legal ease, climate, lifestyle and culture, infrastructure, transport and
finally language and safety.
Malaysia holds a compelling position among the four for example in cost of living, healthcare, infrastructure,
language ease (for many Western retirees) it competes very well, and often Malaysia always outperforms
Thailand and Costa Rica in service infrastructure and out-performs many tropical destinations. As for Portugal,
Malaysia likely offers better value for money for many retirees, especially those on moderate budgets. In
addition, Malaysian policymakers or marketers, the comparative strengths to emphasize are affordability,
modern infrastructure, English language accessibility, multicultural society, and healthcare value.
For data analysis, quantitative data is normalized using USD for comparability, followed by benchmarking and
scoring Malaysia against peer nations. Qualitative data is analyzed thematically, identifying patterns in
expatriate experiences, perceived cost-value satisfaction, and ease of adaptation.
CONCLUSION
In conclusion, the cost of living in Malaysia a particularly in the areas of medical care, utility expenses, and
government support that strengthens its position as a potential top retirement destination globally. The
country's relatively low medical costs, supported by a well-established healthcare system that includes world-
class private facilities at a fraction of Western prices, are a major draw for retirees (Malaysia Healthcare Travel
Council, 2023). Utilities costs, such as electricity, water, and internet, remain affordable and stable compared
to many developed nations, contributing to a lower monthly living expenditure for retirees (Department of
Statistics Malaysia, 2024). Furthermore, government initiatives, including the Malaysia My Second Home
(MM2H) program, offer long-term residency options and incentives tailored to foreign retirees, making the
relocation process more accessible and attractive (Ministry of Tourism, Arts and Culture Malaysia, 2024).
These combined factors make Malaysia not only a financially viable option but also a comfortable and secure
INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)
ISSN No. 2454-6186 | DOI: 10.47772/IJRISS | Volume IX Issue X October 2025
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environment for retirement living. However, continued efforts in policy transparency and healthcare access are
essential to ensure long-term sustainability and appeal.
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