An Expat Talks about Retiring in Kuching, Malaysia

What is the name of the city or town that you are reporting on?

Kuching

Why did you choose to retire abroad?

Less Expensive, wanted a calmer and more natural environment

Are you retired abroad all year or part of the year?

All Year

Why did you choose the country you retired to?

Sarawak is one of two East Malaysian states on the island of Borneo. It's much less influenced by the racial and religious animosities found in West Malaysia. Nature is all around and there are still indigenous societies practicing much of their lifestyles in dance, festivals, and village life. But there are urban areas and amenities as well. Cost of living is low and, fortunately, as an oil-producing nation that subsidizes fuel so is petrol. Lots of museums, parks, beaches, rivers, clean air and friendly people.

Did you ever live abroad before you retired abroad?

Yes

How long have you lived abroad since you retired abroad?

All of my retirement is now lived abroad except for short visits to see relatives/friends.

William Russell's private medical insurance will cover you and your family wherever you may be. Whether you need primary care or complex surgery, you'll have access to the best hospitals & doctors available. Unlike some insurers, we also include medical evacuation and mental health cover in our plans (except SilverLite). Get a quote from our partner, William Russell.

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William Russell's private medical insurance will cover you and your family wherever you may be. Whether you need primary care or complex surgery, you'll have access to the best hospitals & doctors available. Unlike some insurers, we also include medical evacuation and mental health cover in our plans (except SilverLite). Get a quote from our partner, William Russell.

Learn MoreGet Quote

How many countries (other than your home country) have you lived in as a retiree?

1

What have been the most challenging aspects of being retired abroad?

Not being able to travel as freely during the Covid pandemic. Sarawak was even shut of from the rest of Malaysia for over a year...which successfully kept the more severe forms of Covid at bay compared to other countries. Vaccination rates were very high here, they got teens and younger children fully vaccinated (and no...there were limited side effects in over 2.5 million population). Sadly events and indoor dining were put on hold for a time. But now that has swung 180º and they are even having large outdoor festivals with no apparent increase in disease rates or upticks in serious illness. People do still mask indoors. The other major aspect of living abroad is staying engaged and not relaxing too much. So avoiding getting fat and unhealthy. I work hard to maintain a daily fitness regimen, and as the food is so good and diverse here, to limit portions.

What have been the most rewarding aspects of being retired abroad?

Meeting new people with different viewpoints than those from my own country. Seeing new places and cultures. I also have time to write on topics that I had little time to while teaching full-time.

What would you do differently if you were just starting the retire abroad process?

I'd probably do it a few years earlier. Looking at my financials and the costs of living it seems I could have escaped two or three years earlier. Ironically that would have relieved some stressful years and saved more money. The problem was qualifying financially for the visa program but I learned that I was actually well above that minimum (which I believed was $2500/month when actually it was $1700/month for singles).

What is life like for a retiree in your city and its surroundings? (Is there an active expat community? Cultural Attractions? Recreation? Nightlife?)

Kuching is a very laid-back city. There are lots of National Parks with forests, caving, waterfalls, hiking, water sports (kayaking), wildlife and small villages and longhouses within an hour or two of town. There is golf, jogging/running, pilates, yoga, etc. Several Cultural Festivals (Gawai as well as the religious ones) and massive Music Festivals like the Rainforest World Music Festival, Miri and Waterfront Jazz Festivals, the Seniawan Country Music Festival, etc. Just noticed that some EMF are happening too. Nightlife sadly is meagre compared to Bali or Bangkok and there is virtually no sex-tourism or beach rave scene. There are a handful of expat-oriented clubs/bars (most shutting during the covid period) but check out Carpenter Street and Jl. Tabuan. Lots of restaurants with a wide range of international cuisines...eating seems to be the main vice of Sarawakians. The expat community is small...most people have a mix of expat and local friends (Sarawakians are a friendly sort). There is a nascent Facebook group (Kuching Expats)

What residency documents or visas did you need to obtain to retire in your host country? How difficult was this process? (Please describe)

If you tire of Visa Hopping, for long-term stays on needs a Sarawak Malaysia My Second Home (S-MM2H) Visa. This is different from and more affordable vs. the Federal MM2H Visa. Sarawak has autonomy over immigration so has its own retirement visa. Generally (unless you have kids enrolled in local schools or purchase property) it is restricted to those over 50 years of age. You cannot work in Malaysia on the S-MM2H visa. Work remotely is okay or if you commute occasionally. There is only a 15-day mandatory "residency" per year. There are three main requirements - 1) you must show you have no criminal background. So you must provide a crminal background check from your home or domicile country. 2) You must show you aren't carrying a serious contagion and don't have evidence of drug abuse. That means a health checkup is required IN SARAWAK. 3) Financial requirements. There are lots of options here but essentially it breaks into two choices. EITHER you need to show sufficient income to live in Sarawak (RM1700/mo. single or RM2500/mo for couples) OR you must establish a Fixed Deposit of RM150,000 (single) or RM300,000 (couples). Current exchange rate is US$1/RM4.45. There are some withdrawals you can take after the first year for property/car purchase, educational expenses, or medical care...but 60% of the deposit must remain in the account. To prove your foreign income they ask to see 6 months of previous pay slips/deposits...for pension 3 months of warrants. You alo need EITHER a local Sarawakian to sponsor you, or obtain a registered agent for the Sarawak MM2H (the must be Sarawakian and not Peninsular Malaysian). There are some documents they have to sign and an interview as to how the sponsor knows you. They guarantee a bond that varies by country based upon deportation costs (airfare to home country). That can vary b/w RM300-RM3000. You'll generally pay the sponsor/agent that amount One did need to come to Sarawak to apply previously, but agents will submit on your behalf if you are applying under the Income/Pension option. You will get a Letter of Conditional Approval...pending the taking of the Sarawak Health Check (which requires a visit, of course). If approved you will get a 5+5 visa (five years plus renewal for another five requiring only the submission of updated financial report and a check that you've met the 15/day residence/year requirement. Visa fees have gone up to RM500/year. You'll generally pay for the first five years or the term of your passport -whichever is lower). Thus if you only have three years on your passport it'll cost RM1500 wth the remaining RM1000 deferred until you transfer the visa into your new passport. Here's the link to the official Sarawak MM2H page. See also the "Sarawak My Second Home Group" on Facebook. Lot's of agents are putting up sites to promote their wares. Sarawak Tourism Board also has a webpage.

Did you buy a home or apartment, or rent one? Is this a difficult process? (Please describe)

If you are over 50 or have children attending a Sarawak school (including International Schools) you are not REQUIRED to purchase property. Those 40-50 without kids can purchase a property to qulify though. BUT anyone on S-MM2H CAN buy property if they wish. There are some restrictions. It must be zoned residentially and have a structure on it or being constructed. It cannot be land zoned exclusively commercially, zoned for agricultural, or reserved native land. And if Landed Property it must be valued above a floor of RM600,000 in Kuching, or RM500,000 elsewhere. That's about US$135,000-$113,000. According to the Sarawak Lands Ordinance of 2019 one can purchase strata property (apartments or condos with no ownership of the underlying land) at any price. There is no floor. And one can rent property virtually anywhere and at any price. I rent, primarily because the property market is a buyers/renters market with a lot of vacancies. If a bargain dream-home emerged I might jump. But I live in the midtown area and prices are a little higher here. Downside of condo life is that many units don't allow pets.

Financially, has living abroad in your host country met your expectations? Exceeded them?

Exceeded them, definitely. Cost of Living is very low here, except for wine and spirits, which are taxed heavily. But I can still get a tin of cheap beer for @US$1. My 3BR/2B penthouse condo costs US$600/month and has a gym, pool, mall, and loads of cafes and shops withing strolling distance. I tend to eat local and avoid Fast Food places which are considered "luxury" restaurants here.

What are the most important financial considerations for retiring to your host country?

The biggest concern for some will be health care. Americans will have to consider if the want to give up their Medicare Part B and thus save on the Monthly Premium. Health care is very cheap in Malaysia and surgeries/consults are in the order of 10-20% of what youd pay in the U.S.A., pharma is also much lower. Considering that Medicare will only cover some of your Medical expenses and that after reaching a deductible, and all those premiums, I decided to forego my Medicare. That's a tough decision as one has paid into it for 45 years of my working career. AND, if I return to the US and decide to re-enroll in Medicare they will PENALIZE me and force me to pay an additional 10% penalty on my premiums for each year I lived abroad. So consider that. Do you want to continue to pay into a program that you cannot use if you live abroad or only if you return to the US to access the services? Frankly it's an insane proposition as Medicare would save trillions if it allowed people to use Medical Tourism to save costs..,.even if they fully covered those bills. Medical training and facilities are high in foreign hospitals/clinics. They have better appointment/surgery times and rehab services. But it is what it is. The health care industry lobby is powerful. Check your retirement plan to see if international health insurance is included, many companies retirement plans have a "retired -live abroad" option because they realize that they will save money vs. paying a retirees Medicare coverage. My University has a Blue Cross Global Blue program that covers 90% of submitted health care costs..and I don't pay a premium at all. Aso there are a host of foreign insurance plans that offer long-term travel/expat insurance at rates far under the Medicare Premium rates. The SMM2H program does require one purchase an insurance coverage plan if under 60.

How much can a retiree live on comfortably in your host country?

I pay US$600/mo rent, food @US$10/day (eating out/with non-alc. drink), Grab Taxi anywhere in town (up to 5 miles) US $2-5. Beer $1-2 tin/bottle. Bottle of Australian wine US$15-25!!! Local lankau rice wine or toddy $1-2. I spend about US$1200/month...tack on regional air trips and health insurance and it might go up to US$1500. Air-fare to Singapore US$20-50, double that to Bali, Bangkok or Ho Chi Minh City (routing through Kuala Lumpur or Singapore). That's about what they expect a S-MM2H single applicant to show.

Do you have access to quality medical care? (Please describe - is it close? Expensive?)

There are six major private Medical Speciality Clinics/Hospitals in Kuching with covering from orthopedics, cancer, to heart and diabetes. Lots of private neighborhood GP's, diagnostic clinics, inexpensive dental and optometric services. There are plans for a Gerontology Training Medical School (Malaysia's population is aging), and a Tropical Medicine Research Center). Most practitioners are trained in UK, Australia, US or Japan.

William Russell
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William Russell's private medical insurance will cover you and your family wherever you may be. Whether you need primary care or complex surgery, you'll have access to the best hospitals & doctors available. Unlike some insurers, we also include medical evacuation and mental health cover in our plans (except SilverLite). Get a quote from our partner, William Russell.

William Russell

William Russell's private medical insurance will cover you and your family wherever you may be. Whether you need primary care or complex surgery, you'll have access to the best hospitals & doctors available. Unlike some insurers, we also include medical evacuation and mental health cover in our plans (except SilverLite). Get a quote from our partner, William Russell.
Get Quote

Is there a lot of crime where you live? (Please describe)

Sarawak is almost Mayberry R.F.D. It's got one of the lowest per capita crime rates of any Malaysian state (which averages low). Crime is centered on financial scams (on-line and phone), illegal gambling, loan-sharking, illegal immigration and to some degree drug abuse. These are things that don't particularly affect expats. Family/domestic violence is the main violent crime. That doesn't mean auto-theft, purse snatching and burglary is non-existent, but condos generally have gates and guards. Home owners do get dogs and alarm systems.

Describe available transportation where you live. Do you need a car? Is there access to safe public transportation?

The public transport system is free but difficult to predict. Routes do hit the malls and main parts around town. There are a few routes to some of the more favored recreational sites (Damai Beach, the Orangutan Rehabilitation Center) but one must get up early to make a day trip. For longer or regional journeys there are buses at the Kuching Central Bus Depot a little out of town. Generally people take Grab there, then hop on the local or express buses. For in town people use the cheap GRAB cars.

Is there high-speed internet access where you live?

Yes 4G is available and they are upgrading to 5G. There are some holes" in the system.