An Overview of Cost-Related Factors Positioning Malaysia as a Competitive Retirement Destination

by Anidah Aziz, Maz Izuan Mazalan, Mohd Sufian Ab Kadir, Norashikin Adam, Siti Mariam Ali, Sumayyah Shaidin

Published: November 12, 2025 • DOI: 10.47772/IJRISS.2025.910000348

Abstract

This study explores the cost of living as a critical indicator for positioning Malaysia as the world's best retirement destination, focusing on three key components: utilities expenses, medical costs, and the Malaysia My Second Home (MM2H) programme. Malaysia has garnered global attention for its relatively low living expenses, quality healthcare, and favorable residency schemes for foreign retirees. Through a mixed-methods approach, the research integrates quantitative data analysis of current living costs with qualitative insights gathered from expatriate retirees and policy stakeholders. Utility expenses in Malaysia remain affordable, with subsidized electricity, water, and internet services providing retirees with cost-efficient living standards. Medical costs are significantly lower than in many Western countries, yet the nation maintains internationally accredited hospitals and skilled healthcare professionals, supporting Malaysia's medical tourism appeal. Additionally, MM2H offers structured visa tiers that attract retirees with various financial capabilities, contributing to long-term residency security and investment potential. The expected conclusion is that Malaysia's competitive cost of living, combined with its healthcare quality and strategic retirement visa policies, solidifies its position as a top-tier retirement destination, especially for middle- to upper-income retirees seeking affordability without sacrificing lifestyle quality.