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COL = RM15-20k per month

Perhaps you should do some research yourself on setting up a business in Malaysia *requires between RM500k and RM1m* or you can look at opening a Labuan registered company (cannot trade in RM so activities have to be offshore). www.simplyoffshore.com  Opening a company enables you to get permits that allow you to stay in Malaysia.  You also have the MM2H programme (Malaysia My Second Home) which gives permits to be able to live in Malaysia, but not be employed (you can continue you current line of work as long as it involves offshore activities.

Also look up the cost of schooling as you have to enrol in international or private schools.

www.ucsiinternationalschool.edu.my/sj/r … cation.pdfwww.schooladvisor.my/schools/

Hi Gravitas

Thanks for the very informative and speedy response. My activities will mainly be offshore so its is best for me to consider something like the Labuan option. I have also found from my limited research the possibility of opening a company in Langkhawi, which I understand affords the said company tax free status. This again is an option that needs more consideration and I will need some expert advice on.
Do you know of any good accountants that you could refer?

I would advise if you are looking for an offshore company set up you contact www.simplyoffshore.com.  They are trustworthy and knowledgeable and I have personal experience with them. Their small office is a 5 minute walk from the twin towers, so really convenient.

Just so you are aware, there are no international schools for your children on Langkawi and it is a dying island with hotels closing up. The nearest schools are on the mainland. The island is generally a bit run down and tatty.  If you would like island living I can highly recommend Penang.

You can open a sales office on Peninsular Malaysia, even if you open a Labuan company. You can have expenses in RM but not actually do business and charge people in RM. You have to have a dedicated phone line and office to have a Labuan company, so the charges will start to mount up. There will be some capital requirement to get any immigration status associated with a Labuan company.

Have you considered applying for Malaysia My Second Home MM2H?  You can continue your offshore activities, children can attend schools. Requires RM500k liquid reserves and RM10k income per month. There is a fixed deposit required as well. If interested, make sure you check out the Government website and not an agent www.mm2h.gov.my

As MM2H is a 10 year social visit pass, you cant work in Malaysia, but can continue managing your offshore interests. It is not advisable to go for MM2H and then decide to open a company, as you can only hold one kind of permit at any time, so would have to give up the MM2H status. There are some advantages of being on MM2H, including importing a car free from paying import tax.

Hi well define decent?

Rent 6k minimum. 8k better. 15k for nice bigger places a mobth. Two cars local 3k (all in) or 6k foreign. Say one of each so 5k.

So that is 13k. 4 kids at a decent school 6k per month each secondary 5k primary. So 22k per month. Plus a driver, uniforms, all those extra fees, trips abroad so say 2k extra on that.

So 8 + 5 + 22 + 2 = 37k before food, medical, clothes, holidays etc

Say 6k for all that and 43k a month after tax.

In UK or USA same living standard is available far cheaper. And if you think that is high wait till your kids are coughing up flem from all the pollution. Then you know what expensive is!

Hi Gravitas. Many thanks once again for the info. I will most definitely visit simplyoffshore during my brief visit. Are you aware whether it is pssible to register a company in Lankhawi and live on the mainland by obtaining a visa through the company?
Nemodot. Thank you for your reply. I agree decent is very subjective. My research suggested my spend as follows:
12k pcm on schools (ELC)
10k on household expenses including cars, insurance etc.
4k for holidays. One abroad per year and two local.
With this spend would I be able to lead a quality of life like equivalent to most middle class Malaysians?
Many thanks.

Nemodot forgot to mention a further 5k for rent of a house.

I think RM5k rent is far too low for a family of 6. To get international standards in say Bangsar or Mont Kiara you probably need to spend about RM8-9k

I've never seen anything about opening a Langkawi registered company. Its just a part of Kedah State which is part of Malaysia, so normal rules would apply.  The tax free (or duty free) aspect is that you can buy tax free items including alcohol, tobacco, household objects, chocolates etc. There are also other tax free zones near borders with Singapore and Thailand.

All other tax rules apply there. I think you may have misunderstood the status of the island. If you are asking because of import duties, then its a very tricky area to break into and last year I heard of a guy who got conned for millions of ringgit. Imports will attract the usual tariffs. There are some restrictions about what kinds of business foreigners can open in Malaysia. So you need to check that out carefully.

If you are planning to open a business that involves actvities in Malaysia, you should do some very thorough market research etc. because it quite hard to break into business in the country in some ways and the hurdles are quite high as well.

My business involves the management of foreign investments. My understanding of the benefits of having a company registered in Lankhawi would be it's tax free status. However if tax free is being construed so narrowly as is being suggested  and does not include an exemption from corporation tax then I don't think it would be ideal. I will be visiting the offices of the company you mentioned in the hope they can provide the most appropriate solution.

On a separate note I've been looking into health insurance and have been quoted in the region of 1700 RM per month. Doesn't that sound a little high to  you?  Do you know of any competitive insurers out there providing medical cover?

Elc is best of the budget schools but is a rundown school with poor facilities and financial trouble we all suspect although I actually like it in terms of output (nice students). It is best of the budget schools but wonder if it will survive the intense competition it faces. It isn't anywhere near western standards though and is academically selective. Basically it is like an old private UK private school (one of the lesser known ones) as these often had poor facilities but good exam results as they picked academic kids and taught by rote. Ok if kids academic top 15% but if not they wont do so well.

Basically if your kids are academic high fliers they will do well there. If not you need to consider proper international schools.

Medical try axa. You have been quoted expat prices. But depends on cover. Good cover costs what you stated.

Labuan is mostly for laundry of "commission" payments and not really designed for foreigners

Don't ask how I know that.....

Best to handle investments from a western regulatory environment.