Malaysia remains one of the world’s top retirement destinations, but policy shifts in the MM2H visa programme have led many to reconsider their options. Could Malaysia do more to position itself as a retirement-friendly nation?
Malaysia has once again secured a spot among the world’s top ten retirement destinations, according to International Living’s Annual Global Retirement Index 2025. The country, which was once consistently ranked as the best place to retire in Asia, saw its position slip during the pandemic years due to border closures and sweeping changes to the Malaysia My Second Home (MM2H) visa programme. These changes led to a sharp decline in applications.
Although the MM2H visa is no longer officially promoted as a retirement visa, it remains appealing to those with sufficient financial means. Malaysia itself continues to appeal to retirees because of its affordability, good infrastructure, excellent healthcare, warm climate, and a welcoming population. We know of many people who still dream of retiring here, but the revised MM2H requirements — such as mandatory property purchases with long holding periods and significant fixed deposit commitments — have deterred a large number of Western retirees. For those with substantial assets and a willingness to relocate to Asia, however, Malaysia remains an attractive choice.
Unlike several neighbouring countries, Malaysia has chosen not to create a dedicated retirement visa aimed at this growing and economically beneficial demographic. This has been disappointing, especially as retirees tend to contribute positively to local economies without adding pressure to job markets. We had hoped for the introduction of a retirement-focused tier, but it appears the government’s priorities lies elsewhere.
CHANGING TRENDS
One concern is that the current MM2H framework, which allows younger applicants, may result in more people using the programme to live and work here — something the visa was not originally intended for (apart from the elite Platinum tier). The Philippines, for example, recently raised the minimum age for their retirement visa after finding that some younger applicants were working illegally.
We are seeing increased interest being directed towards other Asian countries with retirement-specific visas, particularly Thailand and Indonesia. Both countries are actively courting retirees, offering simpler and more targeted programmes.
In this year’s Global Retirement Index, only two Asian countries made the top 10: Malaysia at 7th place and Thailand at 10th. Both are undeniably attractive destinations, but Malaysia arguably holds the edge for many expat retirees with its widespread English proficiency and more developed infrastructure.
Malaysia’s appeal as a retirement destination stems from several key factors — affordable living costs, a robust healthcare system, quality infrastructure, a warm tropical climate, and a diverse, friendly population. It is also famed for its excellent cuisine and wide range of tourist attractions, making it an easy place to fall in love with.
Interestingly, the current iteration of the MM2H programme appears to be attracting increasing numbers of Chinese applicants, many of whom are seeking to relocate entire families due to growing domestic uncertainties. For years, Chinese nationals have been drawn to the MM2H visa, not to relocate here, but to visit, as tourist visa conditions for Chinese nationals were very restrictive. Many developers bundled MM2H assistance into their property sales packages making visits to the country easier. Now, with simplified tourist visa conditions, it seems many Chinese now wish to relocate here.
COULD MALAYSIA DO MORE?
We believe there could be significant interest from Europeans if Malaysia were more widely promoted as a retirement destination. Many Europeans who apply already have prior experience living in Malaysia or connections here, which makes the transition easier. However, there’s little doubt that countless others could significantly enhance their quality of life by retiring here. Most retirees agree that it’s possible to live here comfortably on around €1,200 a month — an amount that would barely cover basic expenses in many Western cities. Of course, the experience is smoother for those who speak English or have a social network here — but with Malaysia’s large expatriate community, making connections is not difficult.
It’s perhaps unsurprising that many people have expressed regret over the decision to drastically alter the original MM2H programme. The earlier version was immensely popular, brought in significant economic contributions, and helped project a positive image of Malaysia globally. While some adjustments were undoubtedly needed, the programme worked — as evidenced by the large number of applicants and the glowing testimonials from participants.
Retirees, in particular, are among the most desirable participants for such programmes. They generally do not seek employment, have time to explore and appreciate the country, and often become informal ambassadors, sharing their positive experiences with friends and family back home. We believe Malaysia could greatly benefit from targeting this segment.