Moving to a new country can be an exciting adventure, but it also comes with many questions. If you're a foreigner considering making Malaysia your home, this article is here to help answer some of the most common queries. Let's get to know the 15 frequently asked questions (FAQ) that will guide you through living in Malaysia.

15 FAQ for Foreigners Living in Malaysia

1. What Visa Do I Need to Live in Malaysia?

To live in Malaysia as a foreigner, you typically need a visa suited to your purpose of stay. Common options include the Employment Pass (EP) for professionals with a job offer, the Malaysia My Second Home (MM2H) program for retirees or long-term residents,, which allows foreigners to live in the country for up to 20 years.

Read here: Malaysia My Second Home (MM2H) Program: A Comprehensive Guide for Expats to Live in Malaysia

The Professional Visit Pass (PVP) for short-term assignments, the Dependant Pass for family members of expatriates, the Long-Term Social Visit Pass for spouses or parents of Malaysian citizens, the Student Pass for full-time students, and the Residence Pass-Talent (RP-T) for highly skilled professionals. Each visa type has specific requirements, such as job offers, financial proof, and health checks, ensuring you meet the criteria for a smooth stay in Malaysia.

2. Can Foreigners Buy Property in Malaysia?

Yes, foreigners can buy property in Malaysia, but there are certain restrictions and requirements to be aware of. Foreigners are typically allowed to purchase residential properties, such as apartments, condominiums, and landed houses, with a minimum price threshold, which varies by state but generally starts from RM 600,000 to RM 1 million.

They are not allowed to buy properties classified as low or medium-cost units or those reserved for Bumiputera (ethnic Malay) groups. Additionally, foreigners must seek state government approval, which is usually a formality but necessary. Malaysia's relatively straightforward process for property ownership makes it an attractive option for foreign investors looking for real estate in Southeast Asia.

Read here: Can Foreigners Buy Property in Malaysia?

3. Can Foreigners Open a Bank Account in Malaysia?

Yes, foreigners can open a bank account in Malaysia, but they must meet specific requirements. Typically, you need to provide your passport, a valid visa or residency pass, proof of address (such as a utility bill or rental agreement), and in some cases, a reference letter from your employer or a letter of introduction.

Different banks may have varying policies, so it’s advisable to check with the specific bank where you intend to open an account. Popular banks like Maybank, CIMB, and Public Bank offer various account types suitable for foreigners, including savings accounts and fixed deposit accounts.

4. How to Get a Driving License in Malaysia for Foreigners?

To get a driving license in Malaysia as a foreigner, you typically have two main options, converting your existing foreign license or applying for a new Malaysian driving license. If you hold a valid driving license from a country with a reciprocal agreement with Malaysia, you may be eligible to convert it directly by submitting an application at the Malaysian Road Transport Department (JPJ), along with your passport, a valid visa, your foreign driving license, a certified translation (if not in English), and a medical certificate.

If you’re not eligible for conversion, you’ll need to enroll in a driving school, pass a theory test (Computerized Driver's Education Test), complete practical driving lessons, and pass the practical driving test. Both processes require fulfilling residency or visa status requirements, so ensure you have a valid visa before applying.

5. Can Foreigners Buy a Car in Malaysia?

Yes, foreigners can buy a car in Malaysia, and the process is relatively straightforward. To purchase a car, you'll need a valid passport, a long-term visa or residency pass (such as an Employment Pass, MM2H visa, or Student Pass), and proof of address in Malaysia. You can buy a new or used car from dealerships or private sellers.

Financing options are available for foreigners, but they often require a higher down payment (usually 20-30%) and additional documentation, such as proof of income and employment. Additionally, you will need to arrange for car insurance and register the vehicle with the Malaysian Road Transport Department (JPJ).

6. What Is the Public Transportation System Like in Malaysia?

Malaysia has a well-developed and diverse public transportation system, especially in major cities like Kuala Lumpur. The system includes a mix of trains, buses, and taxis. The Klang Valley Integrated Transit System in Kuala Lumpur is highly efficient, with services like the KTM Komuter trains, Light Rail Transit (LRT), Mass Rapid Transit (MRT), and Monorail connecting key areas of the city and surrounding suburbs.

Read here: 15 Condominiums and Apartments Near MRT Stations in Malaysia

RapidKL buses provide extensive coverage throughout the city, while intercity and interstate bus services connect major towns and cities across the country. Additionally, services like Grab (ride-hailing) and traditional taxis are readily available for convenient door-to-door travel. In other cities like Penang and Johor Bahru, public transportation options are growing, with initiatives to improve coverage and efficiency, making Malaysia's public transport a practical option for both locals and foreigners.

7. What Cultural Norms and Etiquette Should I Be Aware Of?

When living or visiting Malaysia, it’s important to respect and understand the country’s cultural norms and etiquette, which reflect its multiculture society, including Malay, Chinese, Indian, and indigenous communities. Greeting etiquette typically involves a light handshake or a nod with a smile. It's customary to greet with a slight bow when meeting elders. Dress modestly, especially in rural areas and religious sites, where covering shoulders and knees is expected.

Removing shoes before entering homes and some public places like temples and mosques is a common practice. Using the right hand for eating and handing over items is considered polite, as the left hand is traditionally seen as unclean. Public displays of affection should be kept to a minimum, as they may be frowned upon. Additionally, showing respect for all religions and being mindful of dietary restrictions (such as halal food for Muslims) is essential in maintaining harmonious interactions in Malaysia's multicultural environment.

8. How Do I Manage Taxes and Financial Obligations?

Managing taxes and financial obligations in Malaysia as a foreigner involves understanding the local tax system and ensuring compliance. If you earn income in Malaysia, you are generally required to file a tax return with the Inland Revenue Board of Malaysia (LHDN).

Foreigners who stay in Malaysia for more than 182 days in a tax year are considered tax residents and are subject to a progressive tax rate ranging from 0% to 30% on income earned in Malaysia, while non-residents are taxed at a flat rate of 30%. Common financial obligations include paying the Goods and Services Tax (GST) on purchases (currently replaced by the Sales and Service Tax (SST)), property taxes if you own real estate, and road tax if you own a vehicle. It’s advisable to keep all financial documents and receipts for accurate reporting, and consider consulting with a tax advisor to ensure you meet all legal requirements and optimize your tax situation.

Read here: 5 Important Things to Know for Financing Your Property in Malaysia!

9. How Do I Handle Utilities and Bills?

Handling utilities and bills in Malaysia is generally straightforward, whether you are renting or owning a property. Common utilities include electricity (Tenaga Nasional Berhad - TNB), water, gas, and internet/phone services. Bills can typically be paid online through the service provider’s website, mobile apps, or at local convenience stores, such as 7-Eleven.

For electricity, TNB provides monthly bills, which can be paid via online banking, ATMs, or at TNB payment kiosks. Water supply services vary by state, but they follow a similar payment method. Internet and mobile phone bills can be managed through the respective telecom provider’s portal or app. Many landlords include water and sometimes internet in the rent, so it’s essential to clarify this in your rental agreement. Setting up automatic payments through your bank can help ensure bills are paid on time, avoiding late fees and service disruptions.

10. How Do I Navigate Rental and Property Markets?

Navigating the rental and property markets in Malaysia involves understanding the local practices and available options. Common types of rental properties include apartments, condominiums, serviced apartments, and landed houses. It’s advisable to inspect properties personally and negotiate terms like rent, deposit (usually two months’ rent plus one month for utilities), and lease duration (typically one year).

For buying property, foreigners can purchase residential units above a certain minimum price threshold, which varies by state but generally starts from RM 600,000 to RM 1 million. Working with a reputable real estate agent and legal advisor can help navigate regulations, ensure proper documentation, and manage transactions. Understanding location preferences, property types, and budget constraints will aid in making informed decisions in both renting and buying in Malaysia.

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11. What Are the Key Considerations for Setting Up a Business in Malaysia?

Setting up a business in Malaysia involves several key considerations to ensure compliance and success. First, choose the business structure that fits your needs, such as a sole proprietorship, partnership, or private limited company (Sdn Bhd), with the latter being the most common for foreign investors due to limited liability protection. Register your business with the Companies Commission of Malaysia (SSM) and obtain the necessary licenses and permits, which vary depending on the industry.

Consider the requirements for foreign ownership; some sectors may have restrictions, while others offer 100% foreign ownership. Opening a business bank account is essential for managing finances, and you will need a valid business visa to operate legally in the country. Ensure you comply with tax regulations by registering with the Inland Revenue Board (LHDN) for income tax and possibly the Royal Malaysian Customs Department for Sales and Service Tax (SST). Understanding the local market, hiring local talent, and adhering to labor laws will also be crucial for a successful business venture in Malaysia.

12. What Is the Healthcare System Like in Malaysia? Do I Need Health Insurance?

Malaysia has a well-regarded healthcare system that includes both public and private facilities. The public healthcare system offers affordable medical services to residents, including foreigners, through a network of government hospitals and clinics, though wait times can be longer. Private healthcare provides faster access and more personalized care, with numerous high-quality private hospitals, especially in urban areas like Kuala Lumpur and Penang.

Foreigners are encouraged to have health insurance to cover the costs of private medical care, as it can be expensive without coverage. Health insurance plans are available through local or international providers, offering options tailored to expatriates' needs, including inpatient, outpatient, dental, and emergency services. Having insurance not only ensures access to better care but also provides peace of mind in case of unexpected medical situations.  

13. Is It Necessary to Learn Malay (Bahasa Malaysia) to Live in Malaysia?

While it's not strictly necessary to learn Malay (Bahasa Malaysia) to live in Malaysia, as English is widely spoken, especially in urban areas and among the business community, knowing some basic Malay can significantly enhance your experience. Malay is the national language and is commonly used in government services, local markets, and by the general public. Learning simple phrases can help in everyday interactions, build rapport with locals, and make navigating daily life easier.

For more rural areas or official matters, understanding Malay can be especially beneficial. Overall, while you can get by with English, picking up some Malay will enrich your cultural experience and integration into Malaysian society.

14. What Is the Climate Like in Malaysia, and How Should I Prepare for It?

Malaysia has a tropical climate, characterized by high humidity, consistent temperatures, and significant rainfall throughout the year. Temperatures typically range between 25°C to 32°C (77°F to 90°F), with little variation between seasons. The country experiences two main monsoon seasons, the Southwest Monsoon (May to September) and the Northeast Monsoon (November to March), the latter bringing heavier rains, especially on the east coast.

To prepare for the climate, wear lightweight, breathable clothing to stay comfortable in the heat and humidity, and always have an umbrella or raincoat handy due to frequent sudden downpours. Stay hydrated, use sunscreen to protect against UV exposure, and ensure air conditioning or fans are available in your home to manage indoor temperatures.

 

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•  7 Essential Facts for Foreigners Buying Property in Malaysia