Introduction
In early February 2025, I spent two weeks in Malaysia, visiting Penang, Ipoh, and Kuala Lumpur. This trip had two primary goals: to assess the lifestyle in each city to potentially relocate and to investigate real estate opportunities. While in Kuala Lumpur, I spent the entire time with a local friend. This trip aimed to provide insights into Malaysian cities and the viability of establishing a second home there.
Malaysia's Nightlife (or Lack Thereof)
Unfortunately, this trip didn't align well with my channel's usual focus. Malaysia, due to religious reasons and strict controls, lacks a vibrant nightlife scene. While someone familiar with the area might find enjoyment, I found it quite boring. After the first week, I honestly just wanted to return to Vietnam.
Comparing Malaysia to Vietnam
The biggest difference I felt in Malaysia was the lack of vitality compared to Vietnam. There's a certain energy missing; people seem less vibrant. Vietnam has a larger, younger population, and Vietnamese women are more open in their fashion choices. This creates a more energetic atmosphere, especially in places like coffee shops, which I didn't find in Malaysia.
Southeast Asian Nightlife Rankings
Based on my experiences, I'd rank Southeast Asia's nightlife as follows:
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Gold Level: Thailand and Vietnam (although Thailand's reputation has been affected by recent events).
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Silver Level: Philippines and Indonesia.
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Bronze Level: Malaysia, and possibly even lower.
These rankings exclude other factors besides the nightlife scene.
The Malaysia "Second Home" Program: An In-Depth Look
Many people, including myself, are considering living in Southeast Asia long-term, and Malaysia's "Second Home" program is a popular option. It's considered the original long-term visa program in the region, predating similar initiatives in Thailand and Indonesia.
Appeal and Adjustments
The program is attractive due to Malaysia's advantages, such as language, food, and cultural ties to China. However, it has undergone two significant adjustments since 2012, substantially increasing the requirements each time.
Current Requirements (2024)
The most recent requirements, announced in 2024, involve substantial financial commitments related to saving money, buying property, and residency. There are different levels based on location. The requirements are so high that they rival those of many European countries, suggesting the Malaysian government is confident in its offerings.
Why I Abandoned the Idea of a Second Home in Malaysia
Despite my initial interest, I decided against pursuing the "Second Home" program. Here's why:
1. High and Intimidating Threshold
The program's requirements are simply too demanding. While I could accept stipulations about property purchases, minimum property values, deposits, and living conditions, the mandatory use of a designated intermediary with a $40,000 fee was unacceptable.
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It's unheard of for a government to mandate the use of specific intermediaries and dictate their fees.
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This fee is in addition to visa costs, insurance, and the expenses of buying a house and maintaining the required savings.
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The illiquidity of assets (house cannot be sold easily, deposit cannot be withdrawn without forfeiting the visa) also played a role.
Many friends have opted for European residency programs instead, which offer a path to EU citizenship within five years, a stark contrast to Malaysia's program, which doesn't guarantee permanent residency even after decades.
2. Increased Cost of Living
The cost of living in Malaysia, especially in cities like Kuala Lumpur and Penang, has risen significantly. Dining out is no longer as affordable as it once was, and even locals acknowledge the price increases.
3. Sensitive Demographic Issues
Malaysia has a relatively small population and strict controls on the growth of certain ethnic groups.
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News reports indicate a declining birth rate among the Chinese population in Malaysia.
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In 2023, the total birth rate was only 0.8, far below the population replacement rate.
4. Unstable Policy and Visa Restrictions
The "Second Home" program's policies seem unstable and subject to frequent changes.
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Requirements regarding property purchases and income verification have fluctuated.
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Different agents provide conflicting information about eligibility criteria.
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The introduction of new program tiers and subsequent adjustments create a sense of uncertainty.
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The visa comes with restrictions on working and doing business.
The white silver level, the most accessible tier, only offers a five-year visa, requiring renewal and potential changes to the requirements. This lack of long-term security is concerning.
Conclusion
Based on these four reasons – the high threshold, increased cost of living, demographic concerns, and unstable policies – I've decided that the Malaysia "Second Home" program is no longer suitable for middle-class individuals. It aligns with the concept of "three sets of middle-class anti-poverty," referencing the financial strain of homeownership, international schooling, and a non-working spouse. For those with substantial wealth, the advantages of Malaysian food, language, and widespread Alipay acceptance may still be appealing.