Cost Of Living In Malaysia For Expats

Published on October 1, 2025 and written by Cyril Jarnias

Malaysia has become a top destination for many expatriates seeking an enjoyable lifestyle at a lower cost. Blending modernity with traditions, this Southeast Asian country offers excellent value for money that appeals to more and more foreigners. Discover all the details about the cost of living in Malaysia and the budget needed to settle there.

An Unbeatable Cost of Living: Malaysia, a Haven for Small Budgets

The primary advantage of Malaysia for expatriates is undoubtedly its highly favorable cost of living. In fact, living in Malaysia costs on average 50% less than in France. This significant difference is felt in all aspects of daily life:

• Housing: a 2-bedroom apartment in downtown Kuala Lumpur rents for an average of €400-€600 per month, compared to over €1000 in a major French city.
• Food: grocery shopping costs about €150-€250 per month for one person.
• Transportation: a full tank of gas costs around €25, half as much as in Europe.
• Entertainment: a movie ticket costs an average of €3.50.

Even compared to its Southeast Asian neighbors, Malaysia remains very competitive. The cost of living is, for example, 30% lower than in Bangkok and 60% lower than in Singapore.

Expatriate Budget in Malaysia: Live Like Royalty for the Price of a Minimum Wage Earner

For an expatriate looking to settle in Malaysia, here is an example of a monthly budget to plan for a childless couple:

• Rent (2-bedroom apartment downtown): €500
• Utilities (electricity, water, internet): €100
• Food: €300
• Transportation (gas or public transit): €100
• Entertainment and outings: €200
• Health insurance: €100
• Miscellaneous: €200

Total: approximately €1500 per month

With this budget, an expatriate couple can live very comfortably in Malaysia, reside in a nice modern apartment, eat out regularly, enjoy various leisure activities, and even save money.

For a single person, a budget of €1000-€1200 per month is more than enough to live pleasantly. Families with children should plan for about €2000-€2500 monthly to cover school fees.

Kuala Lumpur vs Other Cities: Where to Settle to Optimize Your Budget?

While Kuala Lumpur remains the preferred destination for expatriates, other Malaysian cities offer a pleasant living environment at a lower cost:

• Penang: 10-15% cheaper than KL, ideal for nature and food lovers
• Johor Bahru: 20% cheaper than KL, close to Singapore
• Kota Kinabalu: 25% cheaper than KL, a tropical paradise in Borneo

By moving away from major cities, it’s possible to further reduce your budget. In small towns or rural areas, the cost of living can be up to 40% lower than in Kuala Lumpur.

Living Like a Local: Tips to Reduce Your Budget

To fully enjoy the financial benefits of Malaysia, here are some tips for living like a local and cutting expenses:

• Prefer local markets and street food for meals
• Use public transportation instead of a car
• Choose housing outside the city center
• Take advantage of numerous free activities (parks, beaches, hiking)
• Opt for local health insurance rather than international

By adopting these habits, it’s entirely possible to live comfortably in Malaysia on a budget of €800-€1000 per month for a single person.

Conclusion: Malaysia, a Smart Choice for Expatriates

With its highly advantageous cost of living, high quality of life, and multicultural setting, Malaysia stands out as a top destination for expatriates seeking a fresh start. Whether for work, study, or retirement, this country offers numerous opportunities to live comfortably on a reasonable budget.