Why Expats Love Malaysia: A Look at Numbers, Rankings, and Expat Trends

Introduction

Malaysia has consistently ranked as one of the top destinations for expatriates worldwide. Known for its vibrant culture, affordable cost of living, and excellent quality of life, Malaysia attracts expats from across the globe. Whether it’s professionals seeking job opportunities, retirees looking for a peaceful lifestyle, or digital nomads enjoying the tropical climate, Malaysia offers something for everyone. In this blog, we explore why expats love Malaysia, the number of expatriates in the country, its rankings on global and regional expat indices, and the countries from which most expatriates originate.

Why Expats love Malaysia

1. High Quality of Life at a Lower Cost

Malaysia offers a significantly lower cost of living compared to many Western countries and neighboring Singapore. Housing, food, healthcare, and transportation are reasonably priced, making it easier for expats to maintain a comfortable lifestyle without breaking the bank.

2. Cultural Diversity and Inclusivity

As a multicultural nation, Malaysia embraces people from various ethnic backgrounds, including Malays, Chinese, Indians, and indigenous communities. This diversity creates a welcoming environment for expatriates, who can easily find international cuisine, cultural festivals, and social communities that make them feel at home.

3. Strong Expat Communities

Malaysia has well-established expat communities, especially in cities like Kuala Lumpur, Penang, and Johor Bahru. These communities offer networking opportunities, social gatherings, and support groups to help new expatriates settle in.

4. Excellent Healthcare and Education

Malaysia boasts world-class private healthcare services that are both affordable and efficient. Many international schools offer British, American, and Australian curricula, making it an attractive destination for expat families.

5. Strategic Location in Southeast Asia

Malaysia’s geographical location makes it a convenient hub for travel. With well-connected international airports, expats can easily explore neighboring countries such as Thailand, Indonesia, and Vietnam.

How Many Expats Are in Malaysia?

As of July 2023, Malaysia had approximately 3 million migrants, accounting for 8.9% of the country’s total population of 33.4 million. These include both white-collar professionals and blue-collar workers contributing to various sectors of the economy. The government actively attracts skilled expatriates through programs like the Malaysia My Second Home (MM2H) visa.

Malaysia’s Rankings as an Expat Destination

Malaysia has been featured in multiple global expat rankings, with varying performance over the years:

• In the 2024 Expat Insider Survey by InterNations, Malaysia ranked 22nd out of 53 countries, slightly lower than in previous years but still a favored choice among expats.
• In the Southeast Asia region, Malaysia competes with popular expat destinations such as Thailand, Vietnam, and Indonesia.
• Top SEA Countries for Expats in 2024:
• Indonesia – Ranked 3rd globally
• Thailand – Ranked 6th globally
• Vietnam – Ranked 8th globally
• Philippines – Ranked 9th globally
• Malaysia – Ranked 22nd globally

Where Do Most Expats in Malaysia Come From?

Malaysia hosts a diverse expat population from across the world. The largest expatriate groups come from:

1. ASEAN Countries (Total: 26,213 in 2019)

• Philippines – 8,579
• Indonesia – 8,106
• Thailand – 3,471
• Singapore – 2,714
• Vietnam – 2,323

2. Non-ASEAN Countries

• India – A significant number of professionals in IT, finance, and business
• China – Business owners and entrepreneurs investing in Malaysia
• United Kingdom, Australia, and the United States – Expats working in multinational corporations, education, and the oil and gas industry

Challenges for Expats in Malaysia

While expats love Malaysia and it is an attractive expat destination, there are some challenges:

• Bureaucratic Processes – Obtaining long-term visas and work permits can sometimes be complex and time-consuming.
• Traffic and Public Transport – While Kuala Lumpur has an extensive MRT and LRT system, traffic congestion remains a problem.
• Limited Job Opportunities for Expats – In recent years, Malaysia has tightened its employment regulations to prioritize local hiring, making it slightly more difficult for foreigners to secure jobs.

Future of Expats in Malaysia

Malaysia continues to evolve as a global expat destination. With ongoing developments in infrastructure, digital transformation, and economic policies, the country is likely to attract even more expatriates in the coming years. The Malaysia Digital Economy Blueprint aims to position Malaysia as a leading technology hub, creating more opportunities for skilled expats in the tech sector, this will add more reason to why expats love Malaysia.

Conclusion

Malaysia remains one of the top expat destinations due to its affordability, cultural diversity, and high quality of life. Despite recent declines in rankings, it continues to be a popular choice among expatriates from ASEAN nations, South Asia, and Western countries. As Malaysia refines its expat policies and economic strategies, it is expected to remain a key hub for global professionals, retirees, and digital nomads in the years to come. These are the expats love Malaysia.

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