This year Malaysia has been named one of the top retirement destinations in 2025, securing the seventh spot in International Living’s Annual Global Retirement Index. The ranking was released by the Ireland-based publication, which evaluates 20 countries based on key factors such as cost of living, visa, residency options, healthcare, climate, governance and lifestyle.
Among Southeast Asian nations, Malaysia and Thailand were the only two places to make into the top 10, with Thailand ranking 10th. The report highlights Malaysia’s affordability, rich multicultural environment and infrastructure as major attractions for retirees.
The report stated
“Malaysia offers a rare blend of low-cost living, excellent medical care and vibrant culture that retirees find both accessible and enriching”
One of Malaysia’s standing out points is its cost-effective lifestyle. In Kuala Lumpur, rental prices are said to be significantly lower compared to major Western cities. In other countries, a one bedroom apartment rent starts between RM1,500-RM2,500 (US$300 and US$500) per month, while utilities starts from RM200-RM300 (US40$ to US$60).

For retirees looking for a slower pace of life, far away from noisy cities, places like Penang and Malacca offer an even lower cost of living with a relaxed atmosphere, making them attractive retirement places.
The country’s climate, with year round temperature ranging between 25’C and 35’C, provides a warm and comfortable environment for retirees. Malaysia’s modern convenience and widespread English proficiency further eases the transition for foreign retirees looking to settle in the country.
Visa and Residency
Malaysia’s long term visa programmes, particularly in the Malaysia My Second Home (MM2H) scheme, have been recognized as a main key factor on it’s appeal to foreign retirees. The programme offers long term residency options, allowing them to enjoy the country’s benefits.

Global Rankings
Panama secured the top position in the index of this year, followed by Costa Rica, Mexico, Portugal, France and Spain. Greece and Italy also made the top 10, reflecting the growth choice for affordable and culturally rich destinations among retirees.
With its combination of affordability, good high quality healthcare and welcoming environment, Malaysia continues to establish itself as a prime destination for the retirees who seek for a comfortable and relaxed lifestyle. Here’s the full report.
Sources: NST , Astro Awani
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