Living in Malaysia: A Cost of Living Breakdown
We've been living in Malaysia for over six months now, and it feels like time has flown by. We decided to finally sit down and calculate our expenses over the past half-year. It was a bit daunting to face the numbers, but necessary.
Tracking Expenses with Wise
We started by examining our Wise account, as it's our primary method for converting GBP to MYR and making purchases using the Wise card. This is likely where a significant portion of our spending occurs.
In February alone, we spent 71,000 MYR! However, a large portion (60,000 MYR) was for renovation costs, specifically for custom cabinets. There are still outstanding payments for the renovation to be made.
UK Credit Card Spending
Next, we looked at the UK credit card expenses. Even though February wasn't over yet, we had already spent nearly 900 GBP, or approximately 5,000 MYR. This spending was attributed to eating out, entertainment, and a trip to Penang.
Additionally, a new set of TaylorMade golf clubs, purchased through Alipay, cost about 4,500 MYR.
Monthly Expenses Breakdown
Excluding the renovation expenses, February's spending on food, entertainment, and shopping amounted to around 20,000 MYR. Adding in rent (6,000 MYR) and children's school fees (2,000 MYR), plus car insurance (approximately 600 MYR per month based on an annual cost of 7,000+ MYR), our typical monthly expenses are about 30,000+ MYR.
Large Purchases and Overall Cost
A glance at a previous statement from November showed a staggering 310,000 MYR spent on Wise, but this included the final payment for our property purchase. This means the usual monthly spend is closer to 30,000 MYR, excluding significant one-off purchases like property, vehicles, or renovations.
Overall, living in Malaysia is proving to be more expensive than initially anticipated. An average monthly expenditure of 30,000 MYR equates to roughly 6,000 GBP, which is substantial.
Comparing Costs to the UK
One key difference is the absence of rent or mortgage payments in the UK. In Malaysia, the increased frequency of spending also contributes to higher costs. In the UK, dining out might happen only two or three times a week. In contrast, the frequency is much higher in Malaysia.
In the UK, after work hours are limited, with early sunsets making leisure activities less appealing. This often resulted in a routine of grocery shopping and home cooking. Weekends were typically reserved for occasional outings. Malaysia offers more time and opportunity for leisure and consumption. New hobbies, like golf, also introduce additional expenses, including coaching and equipment.
Changes in Lifestyle and Spending Habits
There's been an increase in self-care activities, such as massages and facials. While individual treatments are cheaper in Malaysia, the frequency is much higher compared to the UK. This increased frequency ultimately adds up to a considerable sum. Evenings in Malaysia are often spent driving to shopping malls or restaurants, a contrast to the more home-bound evenings in the UK, spent watching Netflix.
Driving distances have also increased. The car, only four months old, has already clocked nearly 6,000 kilometers (approximately 4,000 miles). In the UK, the annual mileage was around 4,000-5,000 miles (6,000-8,000 kilometers). Daily reliance on the car and the dispersed nature of locations contribute to the higher mileage. The relatively affordable fuel prices help to offset some of the cost of driving.
Vehicle Costs and Tolls
While vehicle maintenance costs are generally lower compared to the UK, especially compared to servicing a Porsche, tolls are a frequent and often overlooked expense. Individually, the tolls may seem small (2.5 MYR), but multiple tolls per trip quickly add up. This cost wasn't factored into the initial budget.
Detailed Monthly Breakdown
Here's a breakdown of our typical monthly expenditure:
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Fixed Expenses:
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Rent: 6,000 MYR (soon to be eliminated)
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School Fees: 2,000 MYR
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Utilities (electricity, etc.): Approximately 600 MYR. Touch 'n Go eWallet is useful for paying bills.
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Variable Expenses:
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Children's Activities: A few hundred MYR (estimated)
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Dining Out: Approximately 4,000 MYR
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Groceries: 3,000-4,000 MYR
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Hobbies & Interests (Golf, Pilates, etc.): Can easily exceed 1,000 MYR
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Other Expenses:
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House Cleaning: 400 MYR
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Massages & Beauty Treatments: Variable, but potentially significant
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Differences in Spending Habits and Experiences
Spending habits are significantly different in Malaysia compared to the UK. Spontaneous restaurant meals and outings are more common. The availability of parking is also a factor, making driving to central locations more appealing.
The Value Proposition of Living in Malaysia
Despite the higher-than-expected costs, living in Malaysia offers a richer and more fulfilling lifestyle compared to London, for example. While expenses might be reduced by 20-30% compared to London, the quality of life and experiences are significantly better, perhaps two to three times better. A comparable apartment in London would be far more expensive.
The Malaysian lifestyle encourages outdoor activities and provides more opportunities for enjoyment. The weather plays a significant role, making balconies and outdoor spaces more usable than in the often-cold and rainy UK.
Conclusion
Overall, the cost of living in Malaysia, while not as drastically lower as initially anticipated, offers a favorable balance between expenses and lifestyle. While monthly costs are roughly 30,000 MYR, which converts to 5,000 to 6,000 GBP, the overall experience is more enriching and enjoyable than it would be with the equivalent spending in a city like London. In London the average cost would be 9,000 GBP excluding a mortgage and possibly 17,000-18,000 including the mortgage.
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