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Malaysia - Retirement

If you intend to retire in Malaysia, you’ll need to know what plans to make and these are like most events in the expat community – dependent on your visa status.

Retirement Age

The retirement age in Malaysia is sixty years old. This is the minimum age of retirement throughout the country. That is not to say that a worker has to retire at sixty, this is a matter for you to decide.

State Pension Scheme

The pension scheme in Malaysia is excellent. It is known as Kumpulan Wang Simpanan Pekerja or the Employees Provident Fund. In essence, this is a savings fund where money can be withdrawn under certain circumstances such as buying a home or for emergency medical expenses over the age of fifty-five. It is a compulsory scheme for all workers apart from domestic and self-employed workers and is based on salary amounts. Contributions are topped up by employers and it is compulsory for employers to contribute. There are two accounts operated for contributions made. One account is for financing retirement and is locked away. The second account is available for withdrawal as explained earlier in the paragraph.

Foreign workers are not legally required to sign up to the pension fund but they are allowed to and it makes sense to if they’re to be in Malaysia for some time as the money can be withdrawn if a decision is to be made to return back to your native country. With contributions made from an employer, it is effectively a good way to save money for a rainy day. Contributions to the EMF can be made up until the age of seventy-five years old.

Company pension schemes are not so common for Malaysian companies. Private and global companies do operate their own schemes and this is a matter for you and your employer.

Private Pension Schemes

Private pension schemes are not very common in Malaysia. There are options for an employer to make extra contributions to the EMF if an employee would like to make larger contributions and this could prove beneficial if you want to withdraw funds at the age of fifty-five.

Programs to Attract Retirees

Malaysia runs a second home program. This is known as the Malaysia My Second Home Program (MMSHP). This program is open to foreigners who meet certain criteria. Entry into the country is based on a multi-level social visa and this enables people who enter the country under the program to be allowed to work. The program welcomes those who have spouses and dependent children under the age of eighteen. Those who are aged less than fifty years old are required to have a certain amount of cash assets to invest in a home in Malaysia. For those over fifty, there are thresholds for income from their native country to enable the family or person to be able to sustain themselves if they are retired.

For more information on the MMSHP see here:


Retired Living in Malaysia

The quality of life in Malaysia for retirees is high and enjoyable. The weather is superb and this is known to be beneficial for retirees. A warmer climate will help to avert and ease problems such as arthritic problems and chronic problems such as asthma and other chest conditions that are aggravated in a damper climate.

The cost of living in Malaysia is much cheaper than any other Asian country and there are plenty of activities for retired people to enjoy. It’s also a great place for the mind due to its youth and this can help to keep you young at heart.

If you’re in receipt of a pension from your native country then you’re in luck in terms of tax. Income brought in from outside the country is not taxable in Malaysia. This means you get so much more for your money in the cost of living and you’ll find that you’re able to lead a comfortable and financially worry-free retirement.

Retirement in Malaysia is attractive and with the program the government has in place, numbers of people who are flocking to the country are on the increase. Malaysia is up and coming and is fast becoming a popular place to retire to. Even if you migrate as a working family, retirement is a possibility and an attractive one, too.

Expat Health Insurance Partners

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