Preparing for move to Kuala Lumpur

Hi!
It isn't necessary to move appliances and furniture as you could request for a fully furnished accommodation, there's no need to go thru all the hassles unless you prefer your own.  Another thing you should ask for, in my opinion, is a company car.  Public transport isn't really convenient.

Hello Rizzablen,
Thank you for the response and suggestion. I will be moving for long term (hopefully forever) and i was not sure what is available. I see you work in real estate business. Could you give me approximate range for furnished 3(4) rooms and 2 bathrooms house and condo (apartment)?

Also, is there website for online shopping in Malaysia where I can perhaps compare prices of TVs and other electronics? (something like Amazon.com here in US).
Thank you very much!!

Btw, I used to work in Manila and my wife is from Leyte.

Hi well proper expat packages were....

Old salary plus 30% hardship allowance
22000 sq ft bungalow with swimming pool
Free education for children
A car with driver
A maid for kids if have any
A cleaner
A gardner
Free flights home for all family once a year
Medical insurance for all family

That used to be the norm. Now mostly cash plus flights and sometimes accomodation. But if you have kids free education is a must! You can ask for some of above at least. Medical has to be included by law.

Depends on industry. Oil and gas pay well and still offer lots of perks including hardship allowances. Education is cash plus flights plus free education. IT is mostly cash these days only.

When I moved furniture years ago a lot of it got busted up and some stolen/lost. Personally I say better to get a fully furnished condo but that will cost you 8 to 12 k a month (upto 20k per month for best places) for what you want in a reasonable area. Houses are cheaper but usually rent unfurnished. You can rent furntiture though or just buy all new. Good stuff aint cheap though as all imported.

As always depend on how valuable you are. The more valuable the better package you can ask for!

Do note apart from new york USA is often cheaper to live in than KL. Florida is cheap mostly went there last year looked at house prices. Not in KL! And as an expat you have to spend more than 2 million in selangor or 1 million in KL as a foreigner to own property. Although most places are more than that anyway especially for what you want 2 million just gets something way out of town. Same money buys more in most parts of florida.

Online is far less sophisticated here. Usa has economies of scale that dont exist here. Eg Gap and levis jeans cost 3 to10 times as much. Ouch! And beer prices... make me cry. Same with computers and TVs etc

Lazada is one site but best prices require leg work.

Most electronics cheaper in usa (and uk) but collapse in RM has made prices temp cheaper. Wont last long.

Put it this way I went to new york shopping and saved enough on branded goods to pay for flight and hotel. Went with two empty suitcases

Hello Nemodot!
Thank you for the response and lot of info. Wow!! You are telling me quite the opposite what everybody else were telling me. I always heard that the cost of living there is very very low there. Hmmmm.
Also the prices for furnished condos translated to US$$ seems like 2-3 thousands $$. That is WAY too expensive even for US (maybe not for NY). Here in FL you rent furnished condo or house for $1000 - $1500. Damn!!
Well, I will get the package on Friday or Monday, so I will really have to review it carefully. Will also have to figure what I'm going to do with two big screen TVs.....

Thanks!!
Martin

Bump. Anyone?

Hey Martin

Welcome to Malaysia
I'm a local person who is all out to make friends.
You can add me in Facebook : Nishaline Priya or email me at [email protected]

I will help and guide as much advice as u need being and living in KL.

Regards and have a safe trip

Thank you very much Nishaline. Will keep your contact handy. I'm not there yet. It will take few months.

I went to florida and saw a lovely landed 4 bed house near all conveniences for 155,000 dollars that at that time was 600,000 rm. For 600k I can can only get a semi detached (half the size) way out of KL - about an hour away. Same property in similar location is about 2million plus RM which means an expat can buy.

Rental yields on houses are low so renting a house is better value than a condo but what you describe condo wise is expensive. It depends where but many youngish indonesian oil workers i know pay 5 to 6 k RM per month. Thet get paid well! Or company pays. That is 2 bed near town. People assume I refer to whites when I say expat. There are far more asian expats these days than white. And if they have the ability they get paid well also. Especially oil and gas.

You have to consider who you ask. I mostly hangout with expats who were sent here eg oil and gas who get hardship allowances and perks. Rest are IT (nearly all Indians) or teachers/lecturers. Lecturers and IT get the lowest and for a young single who doesnt mind a bit of roughing it a low cash salary is just enough. Only young once !

But for someone like yourself who sounds like they want a reasonable standard of living expectations are a lot higher. And costs grow massively here when you want to live well.

You really should visit first. Dont be seduced by food prices as only 12% of a typical western budget is food. Its all the other things that add up.

And do factor that the RM is low and may go lower. That imports inflation and costs will go up about 15% this year unless the RM rebounds. Inflation is almost double digit now.

I am not trying to put you off but "eyes wide open". Lots of brits go to asustralia then run back when they realise how expensive it is and that they believed all the lies about paradise.

Wow where to start? Most of your choices will relate to where your office is located as that will dictate the best areas to live in and after that if we have some idea of the salary you are being paid that will help, but in general:
1, If you have school aged children their education will be expensive unless the company picks up the tab.
2. The electrical power supply here is 220 volt 50 cycle so many  of your appliances may not work here so check that out.
3. Furniture is available here are reasonable prices. IF you can get by with IKEA standards no point IMO in shipping furniture here.
4. You will probably spend some time (say at least a month) in temporary accommodation and it would be nice if the company picks up that cost.
5. Depending on where you live and how large a condo you need you can find furnished Expat accommodations in the range of RM2,000 - 4500.
6. Cars here are expensive due to high import duties but shipping yours from the US is not going to be cost effective at all due to among other things high import duties and the steering wheel being on the wrong side. A company car is nice, but if you have to buy  you might want to consider leasing,
7. There is a fair to middling Transit system but this only works if your home and office are close to stations, Taxis are cheap and not always available.

Once we have more info we can be more specific.

Welcome to Malaysian - the climate is a lot like Florida

Hello Old Saigon Hand!
Thank you so much for all the points.  It looks like company will provide addition to my salary that will cover cost of living (rent, car, etc). I do not know the level of the addition yet. The base salary should be OK. Around RM 40k/month. I'm not sure how much will be taxes and medical insurance there.
You are correct in the point that at the beginning I will be in temporary accommodation for couple of months, so I will have time to look around. The work place is in Hicom-Glenmarie Industrial Park if that rings any bells.
The different voltage is bugger. I will have to buy most of my electronics again. Especially my 60" TV.  I will have to check if any appliances have dual voltage. But I will stil need adapter for the different type of outlets unless they have universal ones there.
By the way, considering I'm from EU originally, I have pretty good experience with IKEA... LOL

Thank you and pls let me know any other suggestions.

Happy Holidays to you all!!

Cheers
Martin

Hello Martin,
Depending on where is your office, usually expat likes to live in Bangsar or Mont Kiara because of security, community and food.
I have to admit,***
Let me know if i can help for anything else.
Thanks

Hi Martin as I said you can live very well on RM40,000 per month especially if your company is picking up the housing and car costs.

In addition to the voltage here being 240 volts the plugs in use are the British Standard 3 prong plugs which are quite different to the US plugs - they are big old clunky things but normally each plug contains a 13 amp fuse so the can deliver a lot of power. Adapters are available for US plugs.

Thank you both!
Yeah, I know about the plugs. They are so big and bulky. Geee! Will have to get bunch of adapters for some of the things that have 110-240V capability.
Can't wait!!
I will also have to figure out the visa I will need as I will stay there for long period of time (3-5 years at least). Anyone can give me pointers?

Thanks!!

Forget the home electronics.
A lot of US stuff seems to be 110v only, so you'll need step down transformers for pretty much everything.
The shipping costs will be silly.
The chances of damage in shipping is far too great.
Getting the stuff through customs is likely to be a pain, and you could get hammered for taxes.
KL is a modern city where any and all electronics are easily available.

Your cell phone.
If it's locked to a given supplier - get it unlocked or forget it.
KL has a million shops selling all the latest phones, all unlocked, so you just buy a SIM card and you're on air.

Apart from that, KL is an amazing city - You'll love it.

Hello Fred,
Thank you for chiming in. I was referring to small stuff with adapters that can actually take up to 240V. Because of my travel before, all our phones are international unlocked S5, so there should be no problem.

Any idea about the VISA I will need to get for long stay considering I will be working for US based company?

Thanks!

Hi,
I am Gill. Most of the Condominium come furnished, whilst you still have some that are partly furnished with white goods.It all depends on individual choice.
As in to rent a property, there are several areas to look into is there school going children, where would you be working to thus decide on location.

Hello Gill!
Thank you for the comments!

Can someone tell me what is the name of the area where my work is (Hicom-Glenmarie Industrial Park)?
Also, still looking for the suggestion about the VISA. Which one do I need (considering I will be working for US based company) and is it easier to get it in US or in Malaysia?

Thanks!

Hi! Sorry for late reply.
I am from Metroworld Realty, one of the oldest real estate agency in KL Malaysia.
We have 30  branches in Malaysia, Nationwide.  My team and I could assist you with your accommodation need, we could assist you with our expertise in any area in KL.  You can contact me when you reach KL.  Thank you and have a nice day.
Our official website link: http://www.metroworld.com.my/

You worked in Philippines before!!! That's great!  I have family in California, San Francisco myself.  My cousin brother is in the Navy and now he's an American Citizen, and my cousin sister is married to a US Navy pilot.  Most of them live in California. 
Regards,
Rizza

Hi!
Hi-Com Glenmarie is a large Industrial park located in between Shah Alam, Subang Jaya and Ara Damansara.  So between those 3 locations u could choose in which particular area u prefer to stay.  Agents could drive you around to show you different units in those 3 different areas, so you have more options.  We could assist. 
And do not be worry about adopters, you can get a universal adopter here in Malaysia. 
Regarding your visa, that is handled by the company you're gonna work with along with your working permit.  As far as I know.  Urs is such a big company, they should have runners to take care of those paperworks for you.

Regards,
Rizza W. from Metroworld Realty, Cheras branch

Hello Rizza! Thank you so much for all the info. I will definitely stay in touch and will let you know when I make the move.
I'm trying to be a little proactive with the VISA so I know what is coming. I was hoping that there is someone here from US that is in similar situation and can chime in.

No worries! Glad to be of help.

Perhaps this site could help with your visa worries, somehow.  You could consult live online help on this site or with others in similar situation.  Cheers
https://malaysia.visahq.com/

Im from US and here in my 17th year now.

There are too many points to reply about but:
1) furniture. Forget shipping. Im still storing stuff in US and that was also a mistake because of the ongoing cost. Im going to garage sale the works on my next trip which is what I should have done the first time but then I never knew Id be here so long. You'll see plenty of shops and you'll just pick up things as you need them. It will be OK, dont worry. I never shipped anything but I did fill maximum suitcases on each trip and it didnt take long before I had brought all needed things I couldnt easily replace in Malaysia.

2) Visa. You cannot apply for a work visa on your own, the company has to do that for you and if they havent, you have a problem. Whats the status of it? If you have accepted a job, they must apply for the visa and alert you about its progress and whats needed from you. Why havent they?

3) Glenmarie. Ok, the nearest nearby place to live is Subang Jaya. You should be able to find a nice place around Section 15 or 17, expressed as SS15, SS17, etc.  Look for ads on mudah.com to give you a start in whats being offered. But there is iproperty.com for more expensive places. Check out Google maps and see the towns around Glenmarie. I suggest Subang Jaya because everything you can possibly need is right there.

4) Transport. If you have money to burn buy a car, although I sold my car and have used a motorcycle for the past 7 years. Cars are expensive to buy and very expensive to maintain--tolls, parking, insurance, repairs, traffic tickets, vandalism, etc. Gas is about the same price as US. A small motorcycle is so dirt cheap to buy and maintain its laughable. Cars carry high import duty, at least double US prices. If buying a car, IMHO buy a simple local car like Proton or Perodua. Euro brands are the most expensive and may be difficult to dump later.

5) Voltage adapters. People are confusing adapters with transformers with converters. Ok....if you bring 110V items you must buy or bring a Stepup-Stepdown transformer at at least double the wattage of the item. A 250W item needs a 500W transformer. The bigger the transformer, the higher the cost and weight. See Ebay. In KL there is a street of electric shops selling those but the cost is double or triple US prices and the selection and quality is poor.
Converters--those are for adapting 50hz to 60hz only, they dont do any other job and they are not what you need. In other words, to use a converter you need 220V items first. If its 220V 60hz, then you use the converter to drop it to 220V 50hz for use here. You dont have 220V so forget converters.
Plug adapters-- Malaysia uses the 2 and 3 prong UK plugs. You can easily buy adapters everywhere and use your US plugs straight into them, no problem. But remember all they do is deal with prong designs, nothing about voltage.
Note that PCs etc, are already ALL VOLTAGE so you only need some plug adapters. Look at the bottom of anything you want to bring. If its 110V and you cant live without it, buy a transformer on Ebay and remember they are quite heavy in your luggage. I have two and use them for Tensor lamps, Dremel tool, etc. ALSO, keep in mind when you are using a 500W or 1000W transformer, you are drawing that electricity in addition to the appliance. You may get a shocking electric bill.

Last thing about TVs, phones, tech, etc. Used to be that prices were very high compared to US but over time the prices dropped to about level. However, just as one example, a Hisense 32 inch TV was RM529 in December, now its RM879 because of the dropping RM. Thats a huge shift and its going to continue as to imported goods, like from China. Thats still no reason to ship a 60 inch TV, dont do it.

Also in this vein, consider that what you bring has no service center here unless you specifically know otherwise. That 60 inch, who is going to repair it? Its far better to take local items because of the service you will need. Dont assume a US Samsung item can be serviced at Samsung Malaysia. A Toshiba laptop I have now is from US. Even with an international warranty the machines are not the same and Toshiba Malaysia would have to send to US or somewhere for parts. Big headache. Right now it has a screen problem and im on the phone to US Toshiba to figure out how to get a screen sent here. I dont think they will do it so I will have to buy an external monitor to hook up to it until the next trip. See?

Oh! If you want to bring anything, bring shoes. Thats the hardest thing to find. Yes there are western shops but the fit, colors, sizes are not the same as US. I bring 2-3 new pair each trip. The fit of clothes can also be a problem. Bring anything you really like. What is supposed to pass for generous western sizing is way off the mark.

Thank you guys and especially cvco for taking the time and replying. So much great info.
I finally got my contract (letter of offer) so it is time to start negotiating.

But that of course brings more questions:

1. The company suggested that I will get my salary in fix amount in ringgits.  I'm not sure if that will be beneficial for me considering the ringgit was falling during the last 12 months. If it will keep falling, I will loose against the USD. Maybe I should ask the salary to be tied to USD and then convert to Ringgits based on exchange rate?

2. How is it with taxes? Will I pay taxes in Malaysia or here in US? (I hope not both..)

3. What kind of deductions from paycheck will I face in Malaysia? It is very hard to negotiate my salary if I don't know the deductions...

4. Can you pls explain a little bit more EPF (is it like US 401K?) and SOCSO (is it US social security?)

Thanks you all!!!
Martin

Hello All,

    I see there was good discussion going on in the forum which kinda abruptly stopped 3 weeks ago with few questions of Czechmarty unanswered. They are great questions and anyone who is moving to Malaysia would like to have a basic concept about them.

Hello Spellraj!
Thank you for taking interest in my questions. Yes, it would be great to see some replies here for the last questions. I received some info thru my PM, but the more opinions/info the better!!

.You will have to pay tax both in US and Malaysia (>20%).
. preferably get salary paid in US$.

Thank you for the response. I did talk to tax agency and they confirmed it. I will get paid in USD.

There is a US tax deduction for Americans working abroad - best look that up

From IRS pamphlet 54

"If you are a U.S. citizen or a resident alien of
the United States and you live abroad, you are
taxed on your worldwide income. However, you
may qualify to exclude from income up to
$100,800 of your foreign earnings. In addition,
you can exclude or deduct certain foreign housing
amounts. See Foreign Earned Income Exclusion
and Foreign Housing Exclusion and Deduction"

Thats a double tax treaty. You deduct from usa tax what you paid overseas in most countries subject to certain rules

One big pain for americans!

Sorry but its not a double taxation treaty, Its called a Foreign Earned
Income Exclusion and under IRS rules it works like this:

"If your tax home is in a foreign country and you
meet the bona fide residence test or the physical
presence test, you can choose to exclude
from your income a limited amount of your foreign
earned income. Foreign earned income
was defined earlier in this chapter.
You also can choose to exclude from your
income a foreign housing amount. This is explained
later under Foreign Housing Exclusion.
If you choose to exclude a foreign housing
amount, you must figure the foreign housing exclusion
before you figure the foreign earned income
exclusion. Your foreign earned income
exclusion is limited to your foreign earned income
minus your foreign housing exclusion."

Quotes from the IRS.

This does not help with your local income taxes however.

As best I can determine their is no income tax treaty between the United States and Malaysia.

It might be easier for you to look at http://www1.malaysiasalary.com/salary/s … aysia.html to see what deductions and benefits you will have available . That data is for 2015 but it should still be indicatative.

Funny if there isnt as one between uk and malaysia and most of world with malaysia. Usa calls it something different but in effect it acts same way but not many countried make you pay tax when abroad. Land of the free?

Thank you for the comments guys. I have Deloitte now taking care of all my taxes with my company. There is some sort of agreement between Malaysia and US and they will account the taxes I will pay here. Because I get paid in US, the company will actually taking care of my taxes.

Us citizens are obligated to pay tax on their worldwide income, but there is the $108,000 exclusion if you are resident abroad.