Living and Working in Malaysia

Malaysia is already home to some 60,000 expatriates – many of whom herald from the United Kingdom originally – and because employment opportunities are relatively plentiful, the cost of living low and the standard of living high, living and working in Malaysia is now a popular choice for internationally minded individuals.

Malaysia is already home to some 60,000 expatriates – many of whom herald from the United Kingdom originally – and because employment opportunities are relatively plentiful, the cost of living low and the standard of living high, living and working in Malaysia is now a popular choice for internationally minded individuals.

Holders of EU passports are eligible for an initial three months visa-less stay in the country after which time a residency visa will need to be applied for.

Those who choose to work in Malaysia will find that the main employment centres are Kuala Lumpur, George Town and Ipoh – naturally enough rental rates and house prices are highest in these particular areas of the country as well.  But foreigners are at least allowed to own freehold property in Malaysia which is another reason why this country in Southeast Asia is so popular.

Unemployment in Malaysia is currently low, running at 3.6% (2005 est.) which means that there are currently no restrictions on foreign workers seeking employment in Malaysia.  The best places for expatriates to hunt for work are online in newspapers like the New Straits Times for example, or via international recruitment sites or local recruitment companies based in Malaysia who will accept emailed resumes. 

Once an application has been made for a job in Malaysia it’s normal for a potentially suitable candidate to travel to the country for an interview.  A successful candidate will then be granted an Employment Pass or Professional Pass by their employer which will give them the right to residency in Malaysia.  A travelling spouse and children will then require Dependent’s Passes.

Living in Malaysia an expatriate can expect a good standard of living especially in the main towns and cities.  For expatriate children there are many international schools which either follow the English or American education system and curriculum, and for the benefit of all family members there are excellent health care facilities in Malaysia - although funding health care can be a problem.  Basically all expatriates living and working in Malaysia have to use private hospitals and doctors and their fees can be quite high, this means that health insurance is a must – many international employers in Malaysia include family health insurance as part of their employment package but if not, an individual has to make sure they have expatriate health insurance in place.

And finally in terms of Malaysian taxation – the country has many double taxation agreements in place which means that there is little risk an expatriate will have to pay tax twice - employment income is taxed on a sliding scale with the top rate of tax just 28%, and if an individual decides to own property in Malaysia they will face stamp duty of between 1.5 and 1.75% and capitals gains tax of between 0% and 30% depending on how long they hold their property for before reselling it.