Why Japan Loves Malaysia More Than the US & Canada – Top 6 Reasons!

Malaysia has emerged as one of the top destinations for Japanese expats, even surpassing countries like the US and Canada for long-term stays. But what makes Malaysia so attractive to Japanese people? From affordable living and world-class healthcare to business opportunities and the MM2H visa program, Malaysia’s growing popularity among Japanese citizens is undeniable.

In this article, we’ll explore the top 6 reasons why more Japanese are moving to Malaysia and why this Southeast Asian country is becoming their preferred second home.

1. Malaysia is a Business Hub for Japanese Companies

Malaysia is not just welcoming Japanese people—it’s also attracting Japanese companies in large numbers.

With over 1,600 Japanese companies in Malaysia, the country ranks fourth globally in hosting Japanese businesses, trailing only behind Singapore, Hong Kong, and the US. Some well-known Japanese companies that have established a strong presence in Malaysia include:

• Don Don Donki – A famous Japanese retail chain
• Tsutaya Bookstore – A major bookstore and lifestyle brand
• Mitsui Group & Roto Pharmaceutical – Large Japanese manufacturing corporations with major investments

Japan’s economy has faced 30 years of stagnation, and many businesses are now expanding into Malaysia to seek economic growth opportunities. With Malaysia’s strategic location in Southeast Asia, Japanese companies are setting up manufacturing sector plants, digital hubs, and retail outlets.

This increased investment is also bringing more Japanese employees and their families to Malaysia, creating a strong and growing Japanese expat community.

2. A Multicultural, Friendly, and Relaxing Society

Unlike Japan’s homogeneous society, Malaysia is a multicultural nation, home to Malays, Chinese, Indians, and indigenous communities. This diverse environment makes Malaysia a welcoming destination for Japanese expats.

Many Japanese love that Malaysia is more relaxed and less rigid compared to Japan. Here are a few reasons why:

• Less social pressure – No need to dress formally every day or follow strict workplace rules.
• Casual lifestyle – It’s common for people to wear flip-flops and shorts in public.
• Friendly locals – Malaysians are known for their hospitality and kindness towards foreigners.

Another major factor is the cost of living. In Japan, daily expenses can be high, but in Malaysia, things are much more affordable:

• Hawker food (street food): 8-15 MYR per meal (try the local favorite, nasi lemak)
• Dining out for a family: 100 MYR for a full meal
• Fresh seafood: Much cheaper than in Japan, with 1 kg of salmon costing around 50 MYR

For Japanese expats looking for a better work-life balance, Malaysia offers an affordable and stress-free lifestyle.

3. Malaysia My Second Home (MM2H) Program – 2024 Updates

One of the biggest reasons why Japanese people move to Malaysia is its MM2H (Malaysia My Second Home) program, which offers long-term visas for foreigners.

In 2024, Malaysia’s government announced the establishment of new MM2H categories, making it more structured and attractive. The three new categories are:

Platinum Category

• Fixed Deposit: USD 1 million
• Visa Duration: 20 years
• Property Purchase: Minimum RM 2 million
• Annual Stay Requirement: 90 days

Gold Category

• Fixed Deposit: USD 500,000
• Visa Duration: 15 years
• Property Purchase: Minimum RM 1 million
• Annual Stay Requirement: 90 days

Silver Category

• Fixed Deposit: USD 150,000
• Visa Duration: 5 years
• Property Purchase: Minimum RM 600,000
• Annual Stay Requirement: 90 days

With no earthquakes, a tropical climate, and excellent infrastructure, Malaysia has become an ideal choice for Japanese retirees and expats looking for a long-term home.

4. High-Quality Education & Multilingual Learning

For Japanese families moving to Malaysia, education is a top priority. Malaysia’s education system is multilingual, helping children develop global skills.

Some key advantages include:

• English proficiency – Malaysia ranks among the top 3 in Asia for English skills.
• Multilingual exposure – Children can naturally learn Malay, English, and Mandarin.
• Affordable international schools – Fees range from 8,000 to 15,000 MYR per year, much cheaper than Singapore or Japan.

For Japanese expats raising children, Malaysia offers affordable, high-quality education in a globalized environment.

5. High-Quality Living Conditions & World-Class Healthcare

Japan is known for its high living standards, and Malaysia does not disappoint.

• Modern cities – Kuala Lumpur, Selangor, and Penang offer excellent infrastructure.
• Public transportation – MRT, LRT, and ride-sharing apps like Grab make getting around easy.
• World-class healthcare – Malaysia is a top medical tourism destination with affordable, high-quality hospitals.

For retirees and working professionals, Malaysia provides a modern, convenient lifestyle at a fraction of the cost of Japan.

6. Strong Japan-Malaysia Relations (Look East Policy)

Malaysia and Japan share a special diplomatic and economic relationship, dating back to 1982 when Malaysia’s former Prime Minister Mahathir Mohamad introduced the Look East Policy.

This policy encouraged Malaysia to learn from Japan’s economic success, resulting in:

• Major Japanese investments in Malaysia’s industries
• Collaboration on Malaysia’s first national car, Proton, with Mitsubishi Motors
• Japanese companies constructing half of the Petronas Twin Towers

With Japanese products, food, and culture widely accepted, Malaysia feels like home for many Japanese expats.

Conclusion: Why Japan Loves Malaysia

With a low cost of living, top-tier education, excellent healthcare, business opportunities, and a strong visa program, it’s no surprise that more Japanese people are choosing Malaysia over the US and Canada for long-term stays.

If you’re considering making Malaysia your second home, the MM2H program offers an easy pathway to residency.