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Malaysia

Malaysia, a Southeast Asian nation, is known for its diverse cultural tapestry, blending Malay, Chinese, Indian, and indigenous influences. Kuala Lumpur, its vibrant capital, features iconic landmarks like the Petronas Twin Towers. The country spans Peninsular Malaysia and Malaysian Borneo, offering lush rainforests, beautiful beaches, and rich biodiversity. Malaysia's economy thrives on manufacturing, services, and tourism. Its cuisine, a fusion of various flavors, is renowned globally. The nation practices a moderate form of Islam, promoting harmony among its multi-ethnic population. Politically, it has evolved from a monarchy to a federal constitutional monarchy with a parliamentary system.

last updated on Jan 01, 2025



Taxes

Individual tax rate: Moderate

Malaysia employs a progressive tax system for individual income, with rates from 0% to 30% for residents based on income thresholds. For 2024, residents earning over RM34,000 annually must file taxes. Non-residents face a flat 30% tax on Malaysian-sourced income. Taxable income includes employment, business, and investment income. Specific reliefs and deductions are available to reduce taxable income, like personal relief, spouse relief, and child relief.
Source: https://www.cleartax.com/my/en/corporate-tax-in-malaysia

Corporate tax rate: Moderate

The standard corporate tax rate in Malaysia is 24% for companies with paid-up capital over RM2.5 million. Smaller companies or SMEs benefit from a reduced rate of 17% on the first RM600,000 of chargeable income, with the remainder taxed at 24%. Companies must file returns yearly, with the tax year aligned with the company's accounting period.
Source: https://www.cleartax.com/my/en/corporate-tax-in-malaysia

Crypto friendly: Moderate

Malaysia regulates cryptocurrency under the Securities Commission Malaysia (SC) but lacks specific crypto tax laws. Crypto profits are taxable as income, though there's ambiguity regarding capital gains. The government has shown interest in blockchain and crypto, with initiatives to foster a digital economy. However, the regulatory environment is still developing, making Malaysia moderately crypto-friendly but with high taxation considerations.

Bank account friendly: Moderate

Malaysian banks are generally welcoming to both residents and foreigners, offering services in English and other languages. Requirements include identification and proof of address, but the process can be straightforward for foreigners with the right documentation. Online banking is advanced, yet non-residents might encounter some restrictions compared to residents.

Visas

Investor Visa: Moderate to Hard

The MM2H ( (Malaysia My Second Home) Program offers foreigners a chance to live in Malaysia with different tiers based on investment. Applicants must be at least 30 years old and deposit a specified amount in a Malaysian bank, which varies from MYR 500,000 to MYR 5 million for Silver, Gold, and Platinum tiers, respectively. This visa grants a 5 to 20-year stay, renewable, with possibilities for permanent residency. Benefits include the ability to purchase property and tax exemptions on foreign income.

Difficulty: Moderate to High due to financial requirements and investment verification.

Source: https://www.imidaily.com/the-malaysia-m2h-residence-program/

Digital Nomad Visa: Moderate to Hard

Digital Nomad Visa (DE Rantau Nomad Pass)
Introduced in 2022, this visa targets remote workers, freelancers, and digital entrepreneurs, allowing a stay of 3 to 12 months, renewable up to 24 months. Applicants must earn at least $24,000 annually, provide proof of remote work, and have health insurance. It's designed for those in the digital economy, offering access to various facilities and community support
 
Difficulty: Moderate due to income proof and specific job requirements.
Source: https://www.nurall.co/blog/malaysia

Marriage Visa: Easy to Moderate

If you marry a Malaysian citizen, you can apply for a Long Term Social Visit Pass (LTSVP) which can lead to permanent residency. Documentation like marriage certificates, proof of relationship, and sometimes police clearance are required. The process involves approval from the Immigration Department, and after a certain period, you can apply for permanent residency.

Difficulty: Can be Low to Moderate depending on the authenticity of the marriage and documentation.
Source: https://www.imi.gov.my/index.php/en/main-services/visa/types-of-visas/

Visitor Visa: Easy to Moderate

Often granted on arrival for many nationalities or can be applied for in advance. It allows stays up to 90 days for social visits. No work is permitted under this visa. Extensions beyond the initial period are possible through immigration offices in Malaysia but are limited.

Difficulty: Very Low since it's available for many countries without prior application.
Source: https://www.imi.gov.my/index.php/en/main-services/visa/types-of-visas/

Student Visa: Easy to Moderate

Issued to those accepted into Malaysian educational institutions. Requires proof of admission, financial support, and sometimes health checks. The duration corresponds to the study period, with options for part-time work under specific conditions.

Difficulty: Low to Moderate, primarily due to the need for admission into an institution and financial proof.
Source: https://www.imi.gov.my/index.php/en/main-services/visa/elementor-4396/


Work Visa: Moderate to Hard

Employment visas like the Employment Pass require a job offer from a Malaysian company with a minimum salary, usually above RM5,000 per month. There are also temporary work passes for specific durations and projects. The employer typically handles the application process.

Difficulty: Moderate to High as it depends heavily on the employer's sponsorship and meeting salary and job-specific criteria.
Source: https://www.tataaig.com/travel-insurance/malaysia-work-visa

Economy and Business

Property Ownership: Moderate




Payment friendly: Moderate

  • Malaysia has a well-developed banking system with widespread use of digital payment methods. Foreigners can open bank accounts, though some documentation might be required for non-residents. Currency exchange is accessible, and ATMs are plentiful.
  • Difficulty: Easy to Moderate, as setting up banking can require some paperwork but transactions are generally straightforward.
  • Source: https://www.bnm.gov.my/index.php?ch=en_payment_systems&pg=en_payments_overview


Economy: Moderate

  • Malaysia's economy is diverse, with significant sectors including manufacturing, services, and agriculture. It's transitioning towards a high-income economy but faces challenges like income inequality and external economic shocks.
  • Difficulty: Moderate, to fully understand and navigate due to economic complexities and policy changes.
  • Source: https://www.worldbank.org/en/country/malaysia/overview


Business friendly: Moderate

  • Malaysia offers several incentives for businesses, including tax exemptions, and special economic zones. However, bureaucratic processes can be intricate, and there are sectors with restrictions on foreign investment.
  • Difficulty: Moderate, navigating through regulations and obtaining necessary permits can be challenging.
  • Source: https://investkl.org/business-friendly-environment


Affordability: Cheap

  • Malaysia is generally seen as affordable, especially for living costs compared to many Western countries. However, costs can be higher in major cities like Kuala Lumpur, with affordability varying between urban and rural areas.
  • Difficulty: Easy to Moderate, depending on lifestyle choices and location within Malaysia.
  • Source: https://www.numbeo.com/cost-of-living/country_result.jsp?country=Malaysia

Communications and Technology

Internet: Improving

  • In Malaysia, internet access has seen significant improvements, with a high penetration rate, especially in urban areas. However, rural connectivity remains a challenge, with some students having to climb trees or travel to get a signal. The government has initiated programs like JENDELA to enhance digital infrastructure, aiming for broader 4G coverage and eventual 5G rollout. Despite these efforts, disparities in speed and access persist, particularly in East Malaysia.
  • Difficulty: Moderate to Hard, due to regional disparities in infrastructure and access. 
  • Source: Malaysian Communications and Multimedia Commission


Communication: Moderate

  • Malaysia offers a variety of communication platforms, including mobile, internet, and traditional postal services. Mobile penetration is very high, with numerous service providers offering competitive plans. The use of social media and instant messaging apps like WhatsApp is widespread. However, language barriers can exist, with Malay, English, Chinese, and Tamil being commonly used. The effectiveness of communication can vary based on one's proficiency in these languages or technological access in less developed regions.
  • Difficulty: Easy to Moderate, considering the availability of options but complicated by language diversity and rural connectivity issues.
  • Source: Malaysian Ministry of Communications and Multimedia


Phone friendly: Moderate

  • Malaysia's mobile phone market is robust, with multiple carriers providing extensive coverage and competitive pricing. Phones are highly used for various purposes, including banking, communication, and entertainment. SIM cards are easily obtainable for tourists and residents, with many plans offering generous data and call packages. However, in remote areas, service can be less reliable, and some might experience connectivity issues with certain providers.
  • Difficulty: Easy to Moderate, given the widespread availability and competitive services, but with challenges in remote locales.
  • Source: Malaysian Communications and Multimedia Commission

Social, Safety and Politics

Progressive: Moderate

  • Malaysia has been making strides towards becoming more progressive, particularly in areas like technology, education, and some social reforms. However, the pace can be slow due to a balance between maintaining traditional values and embracing modernity. Issues like gender equality, rights for the LGBTQ+ community, and freedom of expression face cultural and political resistance. Initiatives for sustainable development and digital transformation are more welcomed, but cultural conservatism can limit certain progressive movements.
  • Challenges: Moderate to Hard, due to the interplay between traditional values and modern reforms, requiring nuanced understanding and patience.
  • Source: Malaysian Institute of Economic Research


Religions: More than 5

  • Malaysia's religious landscape is diverse, with Islam as the official religion, practiced by the majority Malay population. Buddhism, Christianity, Hinduism, and various Chinese folk religions also have significant followings. Religious freedom is protected, but conversion away from Islam is legally challenging. Events like Hari Raya, Chinese New Year, and Deepavali are celebrated, showcasing religious harmony, though sensitive issues can sometimes surface.
  • Challenges: Easy to Moderate, as practicing religion is generally straightforward, but understanding interfaith dynamics requires some effort.
  • Source: Malaysian Ministry of Unity


Safety: Moderate

  • Malaysia is generally considered safe for both residents and tourists, with low rates of violent crime. However, petty crimes like theft occur, especially in crowded places. Urban safety contrasts with rural areas where different concerns like wildlife or weather-related hazards might exist. Vigilance and awareness are recommended.
  • Challenges: Easy to Moderate, with basic safety measures sufficient in most areas, but more caution is needed in less policed regions.
  • Source: Royal Malaysian Police


Political Stability: Moderate

  • Malaysia's political scene is dynamic, with shifts in government through democratic elections. Political stability can be influenced by coalition politics, corruption scandals, and policy changes. While the country maintains peace, political discourse can be intense, and protests have occurred, mostly peaceful but can lead to temporary disruptions.
  • Challenges: Moderate to Hard, understanding the political landscape and its implications requires in-depth knowledge and adaptability to change.
  • Source: Malaysian Election Commission


Corruption: High

  • Corruption is a noted challenge in Malaysia, impacting governance, business, and public perception. Despite efforts by bodies like the Malaysian Anti-Corruption Commission, corruption at various levels remains a concern. Public scandals can significantly affect political stability and public trust, making transparency and accountability ongoing challenges.
  • Challenges: Hard, navigating or fully grasping the extent of corruption involves dealing with systemic issues and cultural nuances.
  • Source: Malaysian Anti-Corruption Commission


Friendliness: High

  • Malaysians are renowned for their friendliness and hospitality, welcoming both locals and foreigners with warmth. The country's multicultural environment fosters an atmosphere of mutual respect and friendliness. However, cultural differences in social etiquette might require some learning, especially for newcomers to Malaysia.
  • Challenges: Easy, as the general populace is welcoming, but understanding nuanced social cues might require some adjustment.
  • Source: Malaysian Tourism Promotion Board


Education

Average education: Moderate literacy

Malaysia's education system includes compulsory primary and secondary education, with a literacy rate of around 95% among adults. The average years of schooling is approximately 10 years, reflecting a commitment to education but showing room for improvement in tertiary enrollment and educational outcomes, particularly in international comparisons like PISA.

International Schools: Very accessible

Malaysia has a strong presence of international schools offering curricula like the British, American, and International Baccalaureate systems. These schools cater to expatriates and locals seeking international qualifications, with about 150+ institutions across the country. They are known for high standards, diverse student populations, and modern facilities, making Malaysia a hub for international education.

Technological expertise: Developing

Malaysia has made strides in technology, particularly in fields like semiconductors, electronics, and IT services, with companies like Petronas, Maybank, and various tech startups leading innovation. The government's push towards digital transformation, including the Malaysia Digital Economy Blueprint and investments in STEM education, reflects a growing technological expertise, though it lags behind global leaders like the US or South Korea.

Health

Seasons: 2 seasons

  • Malaysia does not experience the traditional four seasons due to its location near the equator. Instead, it has two monsoon seasons: the Southwest Monsoon from late May to September, which is drier, and the Northeast Monsoon from November to March, bringing heavy rains, especially to the East Coast. Temperatures remain high year-round with humidity varying. This constant climate means less variation in clothing but requires preparedness for rain.
  • Challenges: Easy, as there's no need to adapt to drastic seasonal changes, though one must be ready for monsoon rains.
  • Source: Malaysian Meteorological Department


Fitness: Moderate

  • Fitness in Malaysia is accessible with numerous gyms, parks, and public sports facilities available. Urban areas have an abundance of fitness centers offering various classes. Outdoor activities like hiking, running, and cycling are popular, with Malaysia's natural landscapes providing beautiful trails. However, the hot and humid climate can pose a challenge to outdoor fitness routines, necessitating hydration and timing of activities.
  • Challenges: Moderate to Hard, mainly due to the climate's impact on outdoor activities and the need for discipline in such conditions.
  • Source: Sports and Youth Ministry of Malaysia


Pollution: High

  • Malaysia faces challenges with air and water pollution, particularly in urban areas like Kuala Lumpur due to traffic and industrial activities. Haze from forest fires, often originating from neighboring countries, can significantly degrade air quality during certain times of the year. River pollution is also a concern due to industrial discharge and waste management issues. Efforts to combat pollution include stricter regulations and public awareness campaigns.
  • Challenges: Moderate to Hard, as managing or mitigating exposure to pollution requires awareness, sometimes relocation during severe haze, and a commitment to environmental practices.
  • Source: Department of Environment, Malaysia


Healthcare: Moderate

  • Malaysia boasts a dual-tier healthcare system with public and private options. Public healthcare is affordable but can be crowded, with longer wait times. Private healthcare offers quicker, often more comprehensive services but at a higher cost. Medical tourism is significant, drawing patients from abroad for treatments. However, the quality of care can vary between urban and rural areas, and language barriers might exist in less urbanized regions.
  • Challenges: Easy to Moderate, access to healthcare is relatively straightforward, but choosing between public and private, and dealing with language or regional disparities can complicate matters.
  • Source: Ministry of Health Malaysia


Diversity

Food diversity: Highly diverse

  • Malaysia is renowned for its culinary diversity, reflecting its multi-ethnic population. Malay, Chinese, Indian, and indigenous cuisines blend with influences from neighboring countries and colonial histories. Street food, hawker centers, and high-end restaurants offer everything from nasi lemak to laksa, roti canai, and char kway teow. Halal food is widespread due to the Muslim majority, but options for all dietary preferences are available. Navigating this diversity can be an adventure, with each region offering unique flavors.
  • Challenges: Easy, given the abundance and accessibility of diverse food options, though one might need to explore to find specific cuisines or dietary accommodations.
  • Source: Malaysian Tourism Promotion Board


Ethnics diversity: Highly diverse

  • Malaysia's population comprises Malays, Chinese, Indians, and various indigenous groups, each contributing to a rich cultural tapestry. This ethnic diversity is celebrated in festivals, customs, languages, and daily life, yet it can also lead to social complexities, including ethnic-based political policies like the Bumiputera policy. While this diversity enriches the cultural landscape, it also poses challenges in terms of social integration, language barriers, and occasionally, ethnic tensions.
  • Challenges: Moderate, navigating ethnic diversity involves understanding cultural nuances and sensitivities, which can be complex but rewarding.
  • Source: Department of Statistics Malaysia