125,000 US dollars per year

Hello
I am a new member on this site and am considering a position in KL.  I am single and would like to rent a 2 bedroom condominium or house.  The position pays 125,000 US dollars per year, and I am responsible for all taxes (I am looking into what this means to me).  What type of lifestyle could I expect in KL with this income?
Thank you

Hi

Being single and earning that amount of income, you will be able to lead a pretty good lifestyle in Kuala Lumpur but of course it very much depend on individual spending style.

Decision of accommodation will depend on location of your office. Do you wish to drive to work or take public transportation? You will mostly get condo right in the city center and houses further out. All depend on your preferences.

It will be nice to have another American in the country if you decide to take up the job offer. :)

Cheers,
Chris

Commodities and services are relatively affordable here in Malaysia. However your spending style may make them expensive to you. Your salary as you have stated it is enough to make you find Malaysia a haven. Houses are available. You can always find them if you seek them. Congratulations on the appointment and we are already feeling your presence. Welcome to Malaysia, the heart of Asia

Hi lovetotravel,

Nice to know you here.

On that kinda salary, you will have a decent living in Malaysia. Since you love to travel, you will be able to travel within Malaysia and still have savings. Of course, much will depend on how you use and save.

On renting a property, based on that salary, you shd be able to live in high-end areas like Mont Kiara (where I live), KL city centre and Bangsar. If condo is what you are after, Mont Kiara is the place for you as there are a lot of expats here. If you are considering a house, then you may wanna try Bangsar. FYI, Mont Kiara is quite near to Bangsar. So, with your salary, your lifestyle will be luxurious!!!!!!

However, since you have to bear the Malaysian taxes, you have to pay 26% of your gross salary. Of course, you will be able to claim back once you file you tax returns forms before end of April every year.

A lil bit on myself - am an Aussie and have settled down here in Mont Kiara. I suppose you probably need some assistance if you choose to come here. So, if you need any contacts on real estate agent and/or lawyer, do email me at [email protected]. More than willing to help. :)


Warren

32000 rm before tax - your going to have a great time.

most expats are on 8-9000 before tax..

i was on 15,000 and most expat friends i had envied it..

not sure on the reply's you got so far? decent living? pretty good? they must either be bill gates and warren buffet, thought you you meant 125000 rm or are just a little envious.

Everything depends on how shrewd you are

Livnallover I can't agree with that! Well not in a way. The fact of life is that western expats earn a lot more than Asian expats in Malaysia and 30k rm a month is just ok for senior expat roles. Lots of expats earn more than that but generally don't hang out in expat forums!

As for the original poster hope it was usd dollars and not Malaysian "dollars" makes a big difference!

Nemodot - I agree lots of expats earn 30k and above, but the vast majority earn far less.

I am not sure why you bring up the fact Western Expats earn more then Asian Expats? I am Australian, I am from Sydney. Sydney has one of the highest cost of living rates in the world and the average person in Sydney earns about 65k (66k USD). This person has been offered a job for double the money, in a country that has a cost of living that is rated about 3 X cheaper then Sydney.

You might earn more but dont try to act like 125,000 is average.. it is well above what the average western or asian expat earns in KL.

Sorry, but I agree with Nemodot. It's quite normal for a western expat to earn that sort of salary over here. It's certainly the norm for most expats I know. They bump up the normal salary to entice people to come. Living cheaply while earning well is a big incentive for most people.
To answer the original question...you will have a great lifestyle with that salary. A nice house in an expat area, decent car, money to eat out and travel...may be even save if you are good with your money.

To answer

j0amelie wrote:

Sorry, but I agree with Nemodot. It's quite normal for a western expat to earn that sort of salary over here. It's certainly the norm for most expats I know. They bump up the normal salary to entice people to come. Living cheaply while earning well is a big incentive for most people.
To answer the original question...you will have a great lifestyle with that salary. A nice house in an expat area, decent car, money to eat out and travel...may be even save if you are good with your money.

To answer


Sorry! I did not reply straight away, I instead decided to research and get all the information I could! I honestly found the vast majority of posts made by potential expats in a number of forums showed the wage averaged between 8k and 15k.. 20k+ was rare to find...

If you are after links, I am happy to post.

You might be 35+, with kids and in a very senior position or have a VERY rare skill (i have no idea). But I stand by the fact the majority of expats in KL do not earn anything close to 120k USD a year. I make this claim by 70-80% of forum posts, my own experience (I was friendly with a very large number of Expats from different countries and companies), and from information provided by 2 different HR companies (I felt the need to really explore this).

I might also add the most people would not relocate an entire family. I will also add that in the current times, Malaysia has many people to work in Senior Positions - they dont need Expats for a large amount of common positions that are offered to international workers..

And my last point will be that from my earnings, I was able to travel to a different country every 6-8 weeks for 3-4 nights, I was able to go out every Friday and Saturday night (and get very drunk) and some week nights I would go out for a few drinks with work people - all while enjoying a great 900sq ft apartment with pool, sauna, squash court, maid 2 times a week and no worry about food..

:)

LivnAllOver wrote:

Nemodot - I agree lots of expats earn 30k and above, but the vast majority earn far less.

I am not sure why you bring up the fact Western Expats earn more then Asian Expats? I am Australian, I am from Sydney. Sydney has one of the highest cost of living rates in the world and the average person in Sydney earns about 65k (66k USD). This person has been offered a job for double the money, in a country that has a cost of living that is rated about 3 X cheaper then Sydney.

You might earn more but dont try to act like 125,000 is average.. it is well above what the average western or asian expat earns in KL.


30,000 ringet is spprox 5,000 pounds a month or 60k GP per year. Some PAs (with MBAs) earn that in UK and in London that is barely adequate salary to survive on. An expat in senior roles would expect at least same salary. UK and USA expats that is - London is full of Aussies working as Aussie pay rates are very low! Australia isn't the west in reality price wise and is really asia.

I do maintain though that most expats in KL earn significantly more than what you imply it is just they tend to be married and don't hang out in bars and expat forums! So harder to meet. Although I have noticed the increasing use of Asian expats in some fields like lower/middle ranking IT roles to cut costs. It is a fact of life that where you come from and skin colour affect pay rates (and how you are treated at work) in Asia and is one reason why expat profiles seem to have changed since I was last in KL. Some of it is good as 8 years ago I never met a single expat black person - my ex sister in law brought some black students home. Women and kids were running screaming in horror! Although still lots of rascism it isn't quite run for your life rascism like it used to be. And I remember that having a black student in your car meant being pulled over by polis almost non stop as that happened to me a lot with my ex's friends when with us.

With regard to expats I noticed the same thing before that in expat forums you tend to get single lower paid independent expats - the ones that do it for the travel and adventure. The "real" expats on expat packages are busy living the lives of the 'white raj' lol with drivers, maids, cooks, gardners (servants) with 22,000 sq ft condos! Pity them (!) for not experiencing Malaysia.

I btw used to earn expat money before but now on teachers wages which are a lot lower but more than you imply as average.


I had access to HR information and a local person in an AVP role 8 years ago in an investment bank got 10-12k RM per month. Famalies with double incomes just survived if have nice house and a decent car.

A friend's 2 bed apartment in KJ is now 520k. At 2.5 times oint salary you require 100,000 RM per annum salary each so 8,000 rm per month each for a couple to afford a basic lower middle class condo. That is about the average local salary.

8 years ago I know - don't ask - a large Mamak owner earnt 25k RM per month after taxes and 10-12k for a small lunch time trade Mamak.

25k a month isn't much. A Merc costs how much? A decent house is a million. Two buy a house and a car is 2 million RM. That is an income for a couple of 2,000,000/2.5 = 800,000 per annum or about 35,000 RM per month per person.

Which is what people earn who have a decent lifestyle in KL. And an expat wants that if from UK/USA and Europe.

Overall I reckon 125,000 USD per year is not excessive and in many roles is rather low!! It depends on what the OP earnt at home.

In Malaysia city (KL) you would have many choices in accommodation (houses) and transport (cars) with wide range of prices. It depends on locations and types and sizes of the houses you rent and model of car you hire/buy. The local cuisines here are quite cheap and affordable and there are many western foods available as well. If you plan well, you should be able live a comfortable life style with some saving.

Hi there, lots of discussion in this thread =), in my personal opinion I think you will find that you will have a more than adequate lifestyle with the salary you have been offered, like others before me have said it comes down to how extravagant you are.

We are not earning as much as you are, we have 2 children attending international school (fees are astronomical here), are able to buy a car, live in a decent sized condo (4 bedroom, 2 bathroom) in Mont Kiara, and pay our mortgage back in NZ and still save a substantial amount and have a good lifestyle. The fact that you are single makes a huge difference.
The other bonus is the compulsory super scheme they have here which your company also contributes to, so that when you eventually leave you would have saved a tidy sum.

I say go for it, life is too short and I believe that your income is more than adequate.

Cheers Karen

hi Karen,

I am evaluating moving to KL with a large IT MNC and be based out of Petaling Jaya.  Since you mention school, I am writing to request you for some info / feedback on Intl schools (english ; IB preferred)for my 9 yr old daughter. 

Any info that you share would be of help.  Thanks in advance.

Rgds,
Indie

just keep going :)

Nemodot wrote:
LivnAllOver wrote:

Nemodot - I agree lots of expats earn 30k and above, but the vast majority earn far less.

I am not sure why you bring up the fact Western Expats earn more then Asian Expats? I am Australian, I am from Sydney. Sydney has one of the highest cost of living rates in the world and the average person in Sydney earns about 65k (66k USD). This person has been offered a job for double the money, in a country that has a cost of living that is rated about 3 X cheaper then Sydney.

You might earn more but dont try to act like 125,000 is average.. it is well above what the average western or asian expat earns in KL.


30,000 ringet is spprox 5,000 pounds a month or 60k GP per year. Some PAs (with MBAs) earn that in UK and in London that is barely adequate salary to survive on. An expat in senior roles would expect at least same salary. UK and USA expats that is - London is full of Aussies working as Aussie pay rates are very low! Australia isn't the west in reality price wise and is really asia.

I do maintain though that most expats in KL earn significantly more than what you imply it is just they tend to be married and don't hang out in bars and expat forums! So harder to meet. Although I have noticed the increasing use of Asian expats in some fields like lower/middle ranking IT roles to cut costs. It is a fact of life that where you come from and skin colour affect pay rates (and how you are treated at work) in Asia and is one reason why expat profiles seem to have changed since I was last in KL. Some of it is good as 8 years ago I never met a single expat black person - my ex sister in law brought some black students home. Women and kids were running screaming in horror! Although still lots of rascism it isn't quite run for your life rascism like it used to be. And I remember that having a black student in your car meant being pulled over by polis almost non stop as that happened to me a lot with my ex's friends when with us.

With regard to expats I noticed the same thing before that in expat forums you tend to get single lower paid independent expats - the ones that do it for the travel and adventure. The "real" expats on expat packages are busy living the lives of the 'white raj' lol with drivers, maids, cooks, gardners (servants) with 22,000 sq ft condos! Pity them (!) for not experiencing Malaysia.

So the rich expats are hiding?

I btw used to earn expat money before but now on teachers wages which are a lot lower but more than you imply as average.


I had access to HR information and a local person in an AVP role 8 years ago in an investment bank got 10-12k RM per month. Famalies with double incomes just survived if have nice house and a decent car.

A friend's 2 bed apartment in KJ is now 520k. At 2.5 times oint salary you require 100,000 RM per annum salary each so 8,000 rm per month each for a couple to afford a basic lower middle class condo. That is about the average local salary.

8 years ago I know - don't ask - a large Mamak owner earnt 25k RM per month after taxes and 10-12k for a small lunch time trade Mamak.

25k a month isn't much. A Merc costs how much? A decent house is a million. Two buy a house and a car is 2 million RM. That is an income for a couple of 2,000,000/2.5 = 800,000 per annum or about 35,000 RM per month per person.

Which is what people earn who have a decent lifestyle in KL. And an expat wants that if from UK/USA and Europe.

Overall I reckon 125,000 USD per year is not excessive and in many roles is rather low!! It depends on what the OP earnt at home.


I pity anyone who takes your opinion to heart.

I ask anyone who is looking for good advice should check out numbeo.com.

It is made by many expats putting in what they spend to give you a good idea on cost of living. I have always found it works and the given figures are near perfect.

Nemodot is very good at using crazy examples on why a country is expensive (bringing up million dollar cars, million dollar houses) but fails to see those would all be the same in countries such as Cambodia, India, Ethiopia.

Most Australians (95% of the country) would consider a single guy on 125k to be on the very high end of life - enjoying a car worth 100,000, living in a place worth a million (renting probably) - in short, 125k in Australia is damn good...

Feel free to view the comparison for the Cost of Living in Sydney (14th most expensive city to Kuala Lumpur 104th most expensive city).

numbeo.com/cost-of-living/compare_cities.jsp?country1=Malaysia&country2=Australia&city1=Kuala+Lumpur&city2=Sydney

en.wikipedia.org/wiki/List_of_minimum_wages_by_country

Perhaps Nemodot could provide some actual facts to back up his claims beyond giving crazy examples.

Hi there

I am Australian citizen living here last 16 years.
Any question relating living in Malaysia,schools Immigration and more.
Karaca.H

Hi guys,

could you please help directly on the forum ?

Thanks,

Julien

if you are single and with that income.....u can have more than you can ask for in life....

Hi,

If you come to Malaysia in the second half of the year you will end up paying tax as a non resident.

For the year 2011, if your stay in Malaysia is less than 182 days, you will be treated as  a non tax resident.  As such, your gross income is taxed at 26% without any reliefs being granted to you.

However, you can plan your personal trips, so if you stay in Malaysia for consecutive 182 days ( there are concessions given if you leave the country for work related activities, seek medical treatment or social visist not more than 14 days)in 2012 , you can appeal  to be treated as a tax resident for 2011. You need to submit your passport together with the relevant computations to the tax authorities

For 2012 and the next years, you have to stay in Malaysia for 182 days ( not consecutive) for you to be treated as a tax resident.

As a tax resident, you will pay lower tax as you will be taxed at progressive rates and you will be able to claim tax reliefs.

Please check the IRB website for further details hasil.org.gov.

Regards,
Maya

I could be wrong but i think you can live a great life on 125000 USD anywhere in the world. I live in the us but i cant see anyone not being able to live on that income.

                                     David1946

i agreed with david1946.
Im a malaysian expat currently working in Cambodia earning almost the same as that. and living in Phnom Penh is much heaven for us. But for that amount, u will live comfortable life in Kuala Lumpur but then again depends on your lifestyle...

Hi!
$125K is 20 times what a shop assistant earns in KL, so, it really is up to you how you want to spend it. As a single westerner here, you can easily live on $3,000 a month and you don't need to spend more than $500 a month on accommodation; Bangsar and Mt Kiara are not the only areas an expat should consider, in particular if they are single. I suggest areas like Sentul, Titiwangsa or Cheras where a new or near new 3-bedroom/2 bathroom unit can be rented for merely $400 (RM 1,200 a month)... and these are central and safe areas where food (especially eating out) costs a lot less than in areas popular amongst expats. Also, transport is not a problem; e.g. Monorail from Titiwangsa to KLCC and Central; a traffic beating solution...