Top 5 Affordable Cities to Retire in Malaysia: A Comprehensive 2025 Guide for Expats

Malaysia has emerged as one of the most desirable retirement destinations globally, thanks to its low cost of living, high-quality healthcare, and vibrant culture. Known for its stunning landscapes, warm climate, and welcoming communities, this Southeast Asian nation ranks high in the annual global retirement index as a place to retire where retirees can enjoy a high standard of living without breaking the bank.

If you’re considering retirement in Malaysia, this guide highlights the top 5 best places to retire. Each offers unique advantages, from affordable housing and excellent healthcare in Malaysia to engaging activities and thriving expat communities.

Top 5 Affordable Cities to Retire in Malaysia:

1. Ipoh, Perak: A Haven for a Relaxed and Affordable Lifestyle

Nestled in Perak, Ipoh combines old-world charm with modern amenities. Its colonial architecture, lush limestone hills, and renowned culinary scene make it a top choice for retirees seeking peace and affordability.

Cost of Living in Malaysia:
Ipoh offers one of the lowest costs of living in Malaysia.

• Rent: A one-bedroom apartment in the city center averages RM1,000 per month.
• Meals: Dining at local hawker stalls costs RM6 to RM12 per meal.
• Utilities: Monthly expenses are around RM200, making it easy to live comfortably.
  Note: Costs may vary depending on location within the city and individual lifestyle choices.

Healthcare in Malaysia:
The city is home to some of Malaysia’s best hospitals, including KPJ Ipoh Specialist Hospital and Pantai Hospital Ipoh, offering retirees quality healthcare at affordable rates. Specialized care is also accessible in Kuala Lumpur and Penang.

Lifestyle Highlights:

• Nature: Explore limestone wonders like Gua Tempurung and serene spots like the Kek Lok Tong Cave Temple.
• Food Scene: Savor Ipoh’s famous white coffee and local specialties such as chicken rice and tau fu fah.
• Community: A growing expat community ensures a welcoming environment with opportunities for social interaction.

2. Kuching, Sarawak: Tranquility Meets Cultural Richness

The capital of Sarawak in East Malaysia, Kuching offers a perfect blend of natural beauty, cultural diversity, and a slower pace of life. It’s a paradise for retirees who value serenity and community.

Cost of Living in Malaysia:
Kuching’s overall cost of living ensures retirees can enjoy their golden years without financial strain.

• Monthly Expenses: Around RM2,790, including housing, dining, and utilities.

Healthcare in Malaysia:
Facilities such as the Sarawak General Hospital and private healthcare providers offer reliable and affordable medical services. For advanced care, retirees may need to travel to Peninsular Malaysia or Singapore.

Lifestyle Highlights:

• Nature: Discover the wonders of Bako National Park and the serene Sarawak River.
• Culture: Experience the rich heritage of indigenous groups and the city’s diverse food culture.
• Community: Kuching’s small but friendly expat population creates a warm, inclusive atmosphere.

3. Kota Kinabalu, Sabah: Coastal Living with a Touch of Adventure

For retirees who love the sea and outdoor activities, Kota Kinabalu in Sabah is an idyllic choice. The city offers scenic coastal views, modern conveniences, and plenty of adventure.

Cost of Living in Malaysia:
Kota Kinabalu provides excellent value for money.

• Rent: A one-bedroom apartment in the city center costs around RM1,200 per month.
• Meals: Dining at local eateries ranges from RM8 to RM15 per meal.
• Utilities: Average monthly expenses are RM250.

Healthcare in Malaysia:
Hospitals such as Queen Elizabeth Hospital and Gleneagles Kota Kinabalu ensure high-quality medical care. For retirees with chronic conditions, specialized treatments are available in Kuala Lumpur or Singapore.

Lifestyle Highlights:

• Outdoor Activities: Hike Mount Kinabalu, dive in the Tunku Abdul Rahman National Park, or relax on pristine beaches.
• Culture: Learn about indigenous traditions at the Mari Mari Cultural Village.
• Community: A growing expat population adds vibrancy and camaraderie.

4. Penang (George Town): Island Living with a Cultural Flair

Penang, particularly George Town, offers a vibrant mix of history, culture, and exceptional cuisine, making it one of Malaysia’s best places to retire.

Cost of Living in Malaysia:
Penang balances modern amenities with affordability.

• Rent: One-bedroom apartments range from RM1,500 to RM2,000 per month.
• Meals: Local hawker dishes start at RM5.
• Utilities: Monthly expenses average RM200 to RM250.

Healthcare in Malaysia:
Penang is a renowned healthcare hub, attracting medical tourists with facilities like Gleneagles Penang and Penang Adventist Hospital, known for their expertise in oncology, cardiology, and orthopedic treatments.

Lifestyle Highlights:

• Heritage Sites: Explore colonial architecture and street art in George Town, a UNESCO World Heritage Site.
• Recreation: Relax on beaches like Batu Ferringhi or enjoy panoramic views from Penang Hill.
• Food Scene: Delight in local favorites like char kway teow and asam laksa.

5. Johor Bahru, Johor: Urban Living with Regional Access

Johor Bahru, located near Singapore, is a thriving city in Malaysia combining urban amenities with affordability. Its strategic location makes it appealing for retirees who value connectivity and modern living.

Cost of Living in Malaysia:
Living in Johor Bahru is economical compared to its neighboring city, Singapore.

• Rent: One-bedroom apartments in the city center cost RM1,200 to RM1,800, while suburban options start at RM800.
• Meals: Local dining ranges from RM5 to RM15 per meal.
• Utilities: Monthly expenses average RM200 to RM300.

Healthcare in Malaysia:
Facilities such as Gleneagles Hospital and Columbia Asia Hospital provide excellent medical services, often used by medical tourists from Singapore.

Lifestyle Highlights:

• Modern Conveniences: Enjoy international schools, shopping malls, and entertainment options.
• Proximity to Singapore: Retirees can access Singapore’s world-class facilities while benefiting from Malaysia’s lower cost of living.
• Community: A vibrant expat community ensures an active social scene.

General Considerations for Retirees

Safety: Malaysia is considered a safe country for retirees, though standard precautions apply, especially in urban areas.

Transportation: Public transportation is well-developed in major cities like Penang and Johor Bahru. Smaller cities such as Kuching and Ipoh may require private vehicles or ride-hailing services like Grab.

Visa Regulations: Malaysia’s Malaysia My Second Home (MM2H) program offers long-term visas for retirees. Requirements and benefits differ between federal and state-specific programs (e.g., Sarawak and Sabah have their own MM2H rules).

Why Retire in Malaysia?

Malaysia offers an unmatched combination of affordability, excellent healthcare, and diverse lifestyles, making it a premier retirement destination. Whether you prefer the colonial charm of Ipoh, the natural beauty of Kuching, or the cultural richness of Penang, there’s a city to suit every preference.