Retirement to Malaysia in four years from now

My short reply to your question is, If I were you, I look for another location or country to retire. I have been here in Malaysia for 15 months. Please read my other blogs for why I said that. Good luck

Hi
I have been in Malaysia for 6 years. I have lived in 12 other countries as an expat, so I am preetty experienced.  I plan to retire here. Yes it has some negative points, but so does any country.
The positives are that it is cheap, the people are friendly and welcoming, the oppportunities to travel ar amazing (once we get past covid) and the bueoracracy is easier than in many other countries for expats.
So do not let 'half cup empty' folk put you off.

Check out the S-MM2H Sarawak MM2H when you do decide. Can reside in the mainland or Sarawak. 14 day stay once a year in Sarawak. No fixed deposit needed with pension over 7500 or 10000 MR with family over 50. If you can find a sponsor don't need to pay for an agent.

I agree that paying an agent for such a simple procedure is an unnecessary big expense but how to find a sponsor?

I agree, I have a friend in KL but that won't work, has to be from Sarawak as far as I can tell. And apparently you cant use agents for that.

You have to decide if you want to live on the east or west side (if you go into the MM2H retirement program) as the criteria is different.

Ok.....im in my 22nd year and personally Ive had enough and want to go. But as Ive said before in this forum, Malaysia is definitely ideal for retirement if that is really all you will be doing. Prices, though climbing steadily, usually remain lower than any western country. Climate, people, food cheaper, nice overall environment, beaches, islands, palm trees, lower prices for medical and dental. Its good for retirement but quite terrible if you want to do anything else like have a business or need to frequently deal with govt.

Financially, if you are alone you can survive OK on US1000 a month. For a couple, US1500. But inflation is always present so maybe in four years you have to add 30-40% to those prices AND be able to handle such increases in the future. If you want a more luxurious life, double or triple my estimates from today. So, on US3000 a month, I could live really well. In fact, personally, I would be gagging on so much money, I wouldnt know what to do with all that. Of course, US3000 is a drop in the bucket for others, they need US20,000 a month.

My advice, as usual, is to come on several 3-month trips and check out everything and spend how YOU want to spend, then decide.

Also, dont just listen to people who say take the East side because of an easier retirement program. This is silly. East and West is different flavors, people, situations and money alone doesnt account for how you would enjoy it or fit in. Personally, I hate the East side and would never live there. Hate the people, the scene, the food, etc. So experiment with both and see and absolutely please dont simply come. Take your time on experimental trips because you might find you dont like either side and will ditch Malaysia completely. If you signed up for programs without the experiments, you might be sorely unhappy. Of course you might be very happy too, im just saying.

So, financially, its hard to predict but as of today looking at four years from now, if you have US2000 a month and can afford 10-15% annual increases, I think you'll be fine for average living as a Malaysian. You might come to my house and think, Hey, excellent, this is great! Or, OMG you live like this?? And run down the street screaming. I dont live like I did in US and wouldnt live like I do if I left here. Living in a place is partly about where you have been but mostly about where you are. Ive made a lot of changes to live like I do, changes that others may or may not ever be willing to make. My goal was to live as a local and im not unhappy. Some expats want and expect to drag their whole past life with them which to me makes things harder and much more expensive. They want their clothes, furniture, pets, cars, foods, whole way of life. In my experience thats not a very good idea but they figure into your question about how to prepare financially. Everything depends on which way you want to live.

You didnt say if you are rich or poor and that makes a difference. I assume most people in retirement are on a budget so I gear my posts that way. If you are rich, dont bother reading. Otherwise, to keep things financially sane, let go of everything, come with the shirt on your back and in small increments build up your life to your minimum comfort level starting with a US1200-1500 monthly budget, notwithstanding the requirements of a specific govt retirement program if you go that way.

Incorrect you can use an agent and again the Sarawak mm2h you don't have to live there. Just visit for 14 days a year. Gives you the option to live in either place. I applied for and was approved for the mainland. I don't want to tie up 45k in a fixed low interest deposit when there are plenty of funds paying 7-10% on avg monthly dividend.
Plans might change  may not retire until 62 in 4 more years. I don't want money to ever be an issue so…. And Sarawak will for me is the better option. It's not a easy west issue it's about a fixed deposit.

MM2H has fallen in reputation due to the Covid19 pandemic,  it is just a glorified tourist visa. Easier to just stay on a tourist and move around Asia and use Airbnb. More flexibility! More fun!

Don't buy property in Asia, use income from home to rent. Which is cheap and flexible in Asia, especially post pandemic with less expats expected.

Remember you are a foreigner, and can be kicked out or stopped from returning at any time. So act accordingly.

Avoid the scummy agents promising the Earth. Best you actually start with tourist visas and Airbnb and try a few countries first, before looking at longer term.

Minimum to live in Malaysia? With health costs and some local travel costs 3,000 USD. At a FIRE rate of 4% (after tax) you will need 900,000 USD to generate that level of income. 3% is safer so 1.2 million USD in investments is recommended, less if you get a work pension of course.

Even with a pension and social security $1,000,000 is good advice. My goal when I hit that then I can think about retiring.

Hi
I have Sarawak's MM2H social visit pass and share my time between London and Kuching. I find it very easy, comfortable and secure here. In terms of requirements of having a new visa is also much simpler than mainland Malaysia and you can apply by yourself without going through an agent. All you need to do find a local sponsor and rest is easy.

So I would advise make your plan now and get the visa sorted until you move here permanently. It is important that you take the opportunity of simple process currently in place which can change anytime and could be difficult if you leave it for 4 years.

Would be happy to assist you if you need any.

regards

Sarawak Revised its version of the MM2H program in September 2020 and never suspended applications. Of course there is difficulty getting in to apply and all govt offices are in lockdown. One needs to do that to take the health exam and potentially set up a local account for the FD. I suspect that won't happen until August or September, at least. It may be easier for fully vaccinated individuals (no or shorter quarantine).

One can use either a local Sarawakian sponsor (cheaper) or an agent (a new allowance for those without a sponsor). For those using pension or external income there has been no change (RM7000 single/month; RM10,000 couple). But the FD amount has gone up.

Other new requirements...purchase of health insurance good in Malaysia for self and dependents.

15 Days/year residency/visit in Sarawak. This will be checked at five years then one can reapply.

Here's the full brief on the new program.

https://mtac.sarawak.gov.my/page-0-179- … Forms.html

We have had MM2H from 2010 to 2020. Over the years it has become more complicated to apply. Once the Covid pandemic broke it has been suspended. As ours expired in mid 2020 we tried to apply for renewal but it was rejected. We bought property jn Penang and lived there for most of this period. All of a sudden we haven been locked out with now prospect of returning. This is our experience!

Hi,

I am Jonathan. Sorry to hear about your predicament.

Could you explain what actually happened and the reasons given, if you don't mind. It would be interesting to know.

We have assisted some of our clients in renewing their 10 year visas after the initial lockdown in 2020 until recently, without much issues,

Thank you in advance. Best regards.