Moving to Malaysia: Requirements and Costs [2026] | International School Fees, Cost of Living and Where to Live

Malaysia has no single "relocation visa". Which pass you enter on determines how much money you need, whether you can bring your family, and whether your children can attend school. 2026 has been a year of continuous rule changes: on June 1 the minimum salary for the Employment Pass was raised in every category (Category I went from RM 10,000 to RM 20,000 a month), and at the same time Category III holders were allowed to bring their families. Meanwhile, foreigners and Malaysian citizens are now treated differently for fuel subsidies, transit passes, stamp duty on property and service tax on school fees, and the burden on foreigners has grown. This article assumes a family relocating with children and sets out, based on information published by the government and by schools, how to choose a pass, international school fees, how Kuala Lumpur, Penang and Johor Bahru compare as places to live, cost of living, healthcare and taxes.

*Amounts and rules are as of September 20, 2026. This article is an English version of our Japanese guide, adapted for foreign residents of Japan and international investors.

*This article is a general explanation based on information published as of September 20, 2026 (Immigration Department of Malaysia, ESD, Ministry of Tourism, Arts and Culture, Inland Revenue Board, Bank Negara Malaysia, Department of Statistics, official school websites, Japan's National Tax Agency, Japan Pension Service and Japan's Ministry of Foreign Affairs). Rules, school fees and exchange rates change. Before acting, please confirm eligibility for any specific application and any tax treatment with professionals and the relevant authorities.

Conclusion: the requirements for moving to Malaysia depend almost entirely on which pass you use

There are three main routes for a family to live in Malaysia long term. If you will work, the Employment Pass; if you will not work, MM2H; if the purpose is your children's schooling, a Student Pass plus a Guardian Pass. On top of these, the nomad pass is an option for a short trial stay. Each has different financial requirements, different procedures for children and different durations.

Main options for relocating as a family (as of September 20, 2026)

Route	Main requirements	Duration	School procedures for children	Best suited to
Employment Pass (Category I/II) + Dependant Pass	Monthly salary of RM 10,000 or more (RM 20,000 or more for Category I). Applies to applications from June 1, 2026	Up to 60 months per issuance	Not needed. Permission to Study endorsed on the Dependant Pass	Families employed by, or transferring to, a Malaysian entity
Employment Pass (Category III) + Dependant Pass	Monthly salary RM 5,000–9,999 (RM 7,000–9,999 in manufacturing-related services)	Up to 60 months per issuance	Not needed	Families obtaining a new pass from June 2026
MM2H (Silver)	Fixed deposit of US$150,000 + purchase of property worth RM 600,000 or more (in KL and Johor, the state minimum of RM 1,000,000 applies)	5 years (renewable)	Not needed. Permission to Study on the MM2H pass	Families who will not work and will live on their assets
Student Pass + Guardian Pass	Application to the relevant immigration office by the school's agent or the parent. Guardian Pass is in principle for one parent (usually the mother)	Generally renewed every year	Child: Student Pass; parent: Guardian Pass (Long Term Social Visit Pass = LTSVP)	Mother-and-child study stays. The heaviest paperwork
(For reference) DE Rantau nomad pass	US$24,000 annual income for tech roles, US$60,000 for non-tech roles. The category is set by an occupation list	3–12 months + 12-month renewal (24 months maximum)	Required. Child needs a separate Student Pass	Short trial stays. Cannot cover the years of compulsory schooling

What is easily overlooked is whether the child is attached to the parent's pass. The Employment Pass (via the Dependant Pass), MM2H, permanent residence and RP-T (Residence Pass-Talent, a 10-year pass for highly skilled people who have worked in Malaysia for 3 years or more) are all attached in this way, so children can attend school with just a Permission to Study endorsement, without obtaining a Student Pass. The DE Rantau nomad pass is not, and children need a separate Student Pass (The Alice Smith School in Kuala Lumpur states this officially).

Total costs vary greatly by city and school. Assuming children in Year 3 and Year 7 (roughly ages 7–8 and 11–12) at top schools and a three-bedroom rental, the figures line up as follows. In Kuala Lumpur (The Alice Smith School / rent of RM 6,500 a month in Mont Kiara), school fees and rent alone come to about RM 288,000 a year. The same setup in Penang (Uplands International School / rent of RM 3,200 a month in Tanjung Tokong) comes to about RM 156,000 a year (tuition before tax; adding the 6% service tax gives about RM 301,000 and RM 163,000 respectively). Within Malaysia, the biggest variable in cost is this choice of city (see the tables below for each school's fees). For anyone earning in another currency there is a separate variable: the exchange rate, discussed later.

To compare the costs of permanent residence and long-stay visas across countries, see our overview of permanent residence and long-stay visa costs worldwide (in Japanese). We also explain the differences between permanent residence, citizenship, visas and tax residence (in Japanese). If you are comparing options in Southeast Asia, see also Moving to Thailand: requirements and costs [2026].

Choosing your route: the Employment Pass criteria changed in June 2026

Employment Pass: minimum salaries raised in every category, and Category III holders can now bring family

The basic route for living and working in Malaysia is the Employment Pass. The Expatriate Services Division (ESD) of the Immigration Department raised the minimum salaries for applications received on or after June 1, 2026. Many websites still show the old thresholds, so be careful not to mix up the figures.

Employment Pass minimum salaries, old vs new (ESD official FAQ)

Category	Old criteria (applications up to May 31, 2026)	New criteria (applications from June 1, 2026)	Family members	Period per issuance	Succession plan
Category I	Monthly salary of RM 10,000 or more	Monthly salary of RM 20,000 or more	Allowed	Up to 60 months	Not required
Category II	Monthly salary RM 5,000–9,999	Monthly salary RM 10,000–19,999	Allowed	Up to 60 months	Required
Category III	Monthly salary RM 3,000–4,999	Monthly salary RM 5,000–9,999 (RM 7,000–9,999 in manufacturing-related services)	Allowed for passes issued on or after June 1, 2026	Up to 60 months	Required
Salary levels not eligible	Below RM 3,000 a month	Below RM 5,000 a month (below RM 7,000 in manufacturing-related services)	—	—	—

The key point is family members for Category III. The ESD's official FAQ states clearly that holders of Category III passes issued before June 1, 2026 remain under the previous rule that does not allow dependants, so there is no retroactive relief. People already in Malaysia on Category III and those obtaining the pass from now on are treated differently. Note also that the salary criteria apply to "applications received on or after June 1, 2026", so eligibility to bring family is based on the issue date, while the salary criteria are based on the application date (some professional websites say the application date applies to family members too, so check with your agent before applying).

At the same time, Category III no longer requires prior approval from the Ministry of Home Affairs, and the cap on the number of renewals and the cooling-off period have been abolished. Exemptions from the minimum salary have been scrapped. A succession plan is the employer's plan to train a Malaysian successor; it is mandatory for Categories II and III. On the validity period, the ESD's official FAQ states that once the revised policy takes effect, companies can apply for an employment period of up to 60 months. Note also that the Employment Pass is valid only in Peninsular Malaysia; to work in Sabah or Sarawak you need a separate state permit. Changing jobs requires a new pass.

The Dependant Pass covers spouses and children under 18, and you cannot work on a Dependant Pass. A spouse who wants to work must obtain their own Employment Pass.

If you move while continuing to work remotely for a company in Japan

If you stay employed by a company in Japan and only move your place of work to Malaysia, the DE Rantau nomad pass is the only Malaysian status designed for this arrangement. However, for the following three reasons it cannot serve as the main route for a family's long-term relocation.

• It ends after 24 months at most (3–12 months on issue plus one 12-month renewal). This cannot cover the years children spend in primary and secondary school
• Spouses cannot work
• Children need a separate Student Pass. Unlike the Employment Pass or MM2H, they are not attached to the parent's pass

According to MDEC's official FAQ (version of August 28, 2026), the requirement is an annual income of US$24,000 for tech roles and US$60,000 for non-tech roles. The two are distinguished not by income level but by the occupation lists in the FAQ. Tech roles include software engineers, back-end engineers, UX/UI designers, cloud, cybersecurity, blockchain development, AI and machine learning, and data specialists; non-tech roles include CEOs, COOs and CFOs, managers in business development, marketing, finance, sales and HR, legal, consultants and technical writers. The lists are updated from time to time, so check the latest MDEC FAQ to see whether your occupation is covered. It is safest to assume that occupations on neither list are not eligible.

Both employees (remote employees) and freelancers can apply. Employees need a signed employment contract, payslips for the last 3 months and bank statements, and the employment contract must have started at least 3 months before the application. Documents not in English require certified translations. Processing takes 6–8 weeks. The application fee is RM 1,080 for the main applicant and RM 540 per dependant.

Repeatedly entering and leaving visa-free is not a workable arrangement. Japanese nationals may stay up to 90 days without a visa for tourism, business or social visits (passports must be valid for at least 6 more months; check the rules for your own nationality), but a stay that began with visa-free entry cannot be extended. Do not rely on it for an ongoing stay that amounts to actually living in Malaysia.

In practice, families end up considering an arrangement in which "mother and child hold a Student Pass and Guardian Pass, and the father travels back and forth on short stays as his job allows." However, the Guardian Pass is in principle for one parent (usually the mother), and some schools require proof of a high income (see "Student Pass and Guardian Pass" below). Whether a Guardian Pass will be granted when the father holds no pass at all must be confirmed in advance with the school and the relevant immigration office. Schools' published information only covers the case where the father holds an Employment Pass.

There is also a tax issue. Malaysian income tax is territorial, and as explained below, "foreign-sourced income" of resident individuals is exempt until 2036. However, if the work is performed in Malaysia, the income may be treated as Malaysian-sourced even if the payer is a company in Japan. In that case the exemption does not apply. For anyone moving while working remotely, this can be a bigger issue than whether the move itself is possible, so consult tax professionals in both Japan and Malaysia before you go. This article does not give a definitive answer.

MM2H: the option for families who will not work. Requires a fixed deposit and a home purchase

MM2H (Malaysia My Second Home) is a long-stay visa, not permanent residence. The 2024 revision reorganised it into Silver, Gold, Platinum and SEZ/SFZ tiers. For Silver, the conditions are a fixed deposit of US$150,000 and the purchase of a home worth RM 600,000 or more (which cannot be sold for 10 years). However, where the state's minimum purchase price for foreigners is higher, that becomes the floor; in Kuala Lumpur and Johor it is RM 1,000,000 or more. On the minimum stay, the official guidelines of the Ministry of Tourism, Arts and Culture state that participants under 50 must stay 90 days a year (cumulative). Medical insurance (coverage of RM 80,000 or more) and a medical check-up after approval are also mandatory. Applications can only be made through licensed agents.

We explain the requirements and cost breakdown, the separate programmes in Sarawak and Sabah, and how MM2H differs from permanent residence in Malaysia MM2H: requirements and costs [2026] (in Japanese). From an education standpoint, the most useful practical point is that with MM2H, children do not need a Student Pass.

One caution: some schools in Kuala Lumpur do not accept MM2H or Dependant Passes issued in Sabah or Sarawak (The Alice Smith School states this officially). State versions of MM2H assume residence within that state, so they are incompatible with plans to send children to school on the peninsula.

Student Pass and Guardian Pass: a mother-and-child study stay involves the heaviest paperwork

If the parents will neither work nor invest and are living in Malaysia only for the children's schooling, the child obtains a Student Pass and the parent a Guardian Pass (in substance a Long Term Social Visit Pass). The Immigration Department divides Student Pass applications as follows: universities and similar institutions apply through EMGS (Education Malaysia Global Services, the agency handling international students), while primary and secondary schools (including international schools) submit applications to the relevant immigration office through the school's agent or the parent. The government fees themselves are low: RM 60 for a Student Pass and RM 90 for a social visit pass for dependants or guardians.

The real burden lies elsewhere. Listing the conditions published by schools gives the following.

• In principle, only one Guardian Pass. Sri KDU states "only one parent, usually the mother", and Alice Smith states that the Kuala Lumpur immigration office issues guardian visas only to mothers
• The mother cannot proceed to a Guardian Pass while the father holds an Employment Pass (Alice Smith; the father's Employment Pass must be shortened or cancelled)
• A Malaysian guarantor (Personal Bond) is required. Under practice since November 2017, it must be stamped by the Inland Revenue Board. The school states that it is not involved in this at all (Sri KDU)
• Proof of income may be required. Alice Smith asks the sponsoring parent for proof of a monthly income of roughly RM 25,000 or more, and the required amount increases with the number of children. Proof that the income is from outside Malaysia is also needed
• The order is fixed. The Guardian Pass cannot be applied for until the child's Student Pass has been approved (Sri KDU)
• Processing is slow. Alice Smith gives 7 working days for a Student Pass but "at least 2 months" for a Guardian Pass

If the school handles the application, the actual costs per Sri KDU's published materials are RM 1,100 for a new Student Pass and RM 1,800 for a new Guardian Pass. Mont'Kiara International School lists visa processing fees of RM 500 per student and RM 1,000 per parent. Including the school's handling fees, the first-year cost is roughly RM 1,700–3,000 for one child plus the mother (at Sri KDU, RM 1,100 for the Student Pass + RM 1,800 for the Guardian Pass = RM 2,900; at Mont'Kiara, RM 1,500 in school visa processing fees + RM 150 in government fees = RM 1,650). In addition, a refundable security deposit of RM 1,000 for Japanese nationals is required.

Note also that Japanese schools require the parents to hold a long-stay visa as a condition of admission. Whether children on the mother-and-child route can enrol must be confirmed in advance; see "Japanese schools" below.

Premium Visa and permanent residence: either the financial bar is in another league, or the criteria are not published

The Premium Visa Programme (PVIP) is valid for 20 years and allows both work and study, but according to the Immigration Department's official FAQ it requires a monthly income of RM 40,000, a fixed deposit of RM 1,000,000 and a participation fee of RM 200,000 (RM 100,000 per dependant), a financial bar in a different league. As of September 2026 there has been no announcement of its abolition, and it is still listed by the Immigration Department and on the government portal.

For permanent residence (Entry Permit), the Immigration Department's official page lists four categories: "wife of a Malaysian citizen", "husband of a Malaysian citizen", "child under 18 of a Malaysian citizen" and "fully foreign nationals". The widely circulated classification of "five categories: investors, professionals, spouses, points-based and highly skilled", and the specific criteria attached to it (investment amounts and pass marks), cannot be confirmed on the Immigration Department's public pages. The existence of a points calculator can be officially confirmed, but the scoring items are not published. In June 2024, the tourism minister stated clearly that participants in the new MM2H are not eligible for permanent residence.

International schools: fees for the same year group can differ threefold

Malaysia is chosen for education-focused relocation because an English-medium education is available more cheaply than in Western countries (for comparisons with Singapore, Thailand, Australia and others, see best countries for education-focused relocation (in Japanese)). However, the range of "cheap" is very wide: for the year group equivalent to the first year of junior high school (Year 7), the most expensive school (Marlborough College Malaysia in Johor, RM 141,300) costs 3.4 times as much as the cheapest (Tenby, also in Johor, RM 42,150). First, comparing the same school brand across three cities shows the pure regional difference.

Comparing one school group across three cities: Penang and Johor are around 80% of KL

Tenby International School annual tuition (2026/27, tuition only)

Year	Greater KL (Setia Eco Park)	Penang	Johor (Setia Eco Gardens)
Year 1	RM 27,750	RM 22,881	RM 23,280
Year 3	RM 39,210	RM 31,440	RM 31,200
Year 7	RM 56,460	RM 46,917	RM 42,150
Year 9	RM 64,200	RM 54,384	RM 49,680

British-system Years use August 31 as the cut-off, so they can differ from Japanese school grades by up to one year. As a rough guide, Year 3 corresponds to Japanese grades 2–3 of elementary school, Year 7 to grade 6 of elementary school through the first year of junior high, Year 9 to the second or third year of junior high, and Year 12 to the second year of high school.

Within the same group, Penang and Johor are both around 80% of Greater KL. The patterns differ, however. Penang is fairly constant, at 82.5% in Year 1 and 84.7% in Year 9, whereas Johor goes from 84% in Year 1 to 77% in Year 9, so the gap widens in higher years. Note that the Penang and Johor campuses do not offer Years 12 and 13 (Sixth Form, the final two years of British secondary education). If you want your child to stay at the same school through the end of secondary school, check the onward options at the time of admission.

Major schools by year group: Penang is around 60% of top KL schools

Next, the main schools by year group. Look at your own child's year group. Fees differ greatly between lower and upper years. All "Johor" schools in the table are in the Johor Bahru area (Iskandar Puteri and nearby).

Annual tuition at major schools (2026/27, tuition only, before tax. British-system Year / American-system Grade)

City	School (curriculum)	Year 3	Year 7	Year 12
Kuala Lumpur	Mont'Kiara International School (American)	RM 106,204	RM 118,674	RM 130,540
Kuala Lumpur	Garden International School (British)	RM 97,830	RM 118,170	RM 126,870
Kuala Lumpur	The Alice Smith School (British)	RM 97,410	RM 112,950	RM 122,370
Kuala Lumpur	IGB International School (IB throughout)	RM 86,500	RM 102,400	RM 118,200
Penang	Uplands International School (British + IB)	RM 46,400	RM 71,400	RM 74,400
Penang	Stonyhurst International School (British, non-Malaysian rate)	RM 44,550	RM 66,150	RM 71,250
Penang	Prince of Wales Island International School (British)	RM 32,760	RM 49,500	RM 64,230
Penang	Tenby International School Penang (British)	RM 31,440	RM 46,917	Not offered (up to Year 11)
Johor	Marlborough College Malaysia (British + IB)	RM 119,400	RM 141,300	RM 166,800
Johor	Raffles American School (American + IB)	RM 74,500	RM 98,500	RM 106,500
Johor	Tenby International School (Setia Eco Gardens, British)	RM 31,200	RM 42,150	Not offered (up to Year 11)

Even Penang's top schools cost around 60% of the top KL schools. Comparing Year 7, Uplands at RM 71,400 against Alice Smith at RM 112,950 is a ratio of 1.58. Against POWIIS in Penang (RM 49,500), the top KL schools cost 2.3 times as much. Johor, by contrast, is polarised: Marlborough College Malaysia, a branch of a prestigious British school, costs more than the top KL schools, while Tenby in the same state is among the cheapest in all three cities.

Note that at some schools the tuition itself changes if the child is a foreign national. Stonyhurst International School in Penang has separate fee schedules for Years 7–9: RM 56,400 for Malaysians and RM 66,150 for non-Malaysians. Foreign families pay the latter. All figures in the table above are tuition only, before tax; actual invoices add service tax and the admission costs described next.

Beyond tuition, a large sum is due on admission

This is what families most often overlook. If you budget only on annual tuition, you will face an unexpected bill running to tens of thousands of ringgit on admission.

Non-tuition costs on admission (2026/27)

Item	Top KL schools	Penang	Nature
Application / assessment fee	RM 1,000–2,000	RM 800–2,000	Non-refundable
Enrolment / registration fee	RM 20,000–28,000	RM 5,000–9,500	Non-refundable
Deposit	RM 20,000–42,290	RM 5,000–18,000	Separate from the enrolment fee. Refunded on leaving
English support (EAL/ESOL)	RM 2,000–5,000 per term (British schools have 3 terms a year, American schools 2)	Around RM 2,500 a year	Charged every year if needed

For example, The Alice Smith School charges an application fee of RM 1,500, an enrolment fee of RM 20,000 (non-refundable) and a parent deposit of RM 24,000 (Years 1–13, refundable). At Mont'Kiara International School the enrolment fee is RM 28,000 + RM 1,680 tax = RM 29,680 for the first child, and RM 18,000 + RM 1,080 tax = RM 19,080 for the second. At top KL schools you need roughly RM 40,000–70,000 on admission on top of tuition, and in Penang RM 11,000–30,000. These amounts are per child. Some schools offer sibling discounts (Mont'Kiara lowers the enrolment fee for the second child, and Uplands discounts tuition by 10% for the second child and 20% from the third), but application fees and deposits are charged for each child.

In addition, since July 1, 2025, a 6% service tax (SST) has applied to services of private and international schools. It applies to "programmes with annual tuition above RM 60,000 per student" and to "services provided to foreign students". In other words, even at schools charging RM 60,000 or less, foreign nationality alone can make the fees taxable. Foreign families should budget on the assumption that the surcharge applies regardless of fee level. Because the rate is the same everywhere, the "ratio" between cities does not change, but the absolute gap widens by 6%. (Some sources give the rate as 6% and others say it is included in the increase to the standard 8% rate; check the school's invoice for the final figure.)

English requirements vary widely between schools, and EAL is an additional annual cost

The assumption that "my child will learn English once enrolled at an international school" does not hold at every school. Marlborough College Malaysia requires B2 or above on the Oxford English Placement Test for entry from the Senior school onward. By contrast, Prince of Wales Island International School says children's English levels vary and does not set a strict minimum.

Check the cost of English support if it is needed. Alice Smith's English support programme (MLL) costs RM 4,500 per term for Years 7–13, Mont'Kiara's intensive EAL course RM 5,000 per term, and IGB International School's ESOL and learning support RM 5,000 per term. Garden International School has a higher fee band that includes EAL, reaching up to RM 140,670 a year for Years 7–9.

Also check how long English support is available. The EAL listed in Mont'Kiara's fee schedule covers Elementary (Grades 1–5) and Middle/High (Grades 6–10), and there is no entry for Grades 11 and 12. If you plan on English support continuing to the final year of high school, that assumption may fail. Alice Smith states that if a family stops a paid support programme before the learning support team judges that the required level has been reached, the child's place will be withdrawn.

Some year groups are not admitting. From secondary level, start more than a year ahead

The Alice Smith School publishes vacancies by year group. For 2026/27, Years 10, 11 and 13 are "Closed", and Years 7–9 are "wait pool only". IGCSE and A-Level are both two-year courses, so as a rule there is no entry into the second year, Year 11 or 13. Year 10 is closed because of capacity.

Garden International School lists its selection criteria when applications exceed places as "other school options, English proficiency, academic ability and the balance of nationalities among enrolled students". In year groups where a nationality is already well represented, this may work against applicants of that nationality. Lower primary years are relatively easy to enter, while secondary years are difficult; this trend is common to all three cities, so plan to start more than a year ahead if you are moving for secondary education.

Year cut-offs and start dates differ from Japan

Year placement has its own pitfall. Both Alice Smith and Garden International School follow the British practice of placing children by age as of August 31. This differs from Japan's April 2 – April 1 school-year cut-off, so children born between April and August may be placed one year differently. As for start dates, most schools begin in August, but Sunway International School (Johor) begins in January.

For Japanese nationals: Japanese schools cost a fraction of international school fees (international schools cost 3.5 to 5 times as much), but require a long-stay visa

All three cities have a Japanese school. Their fees are in a different league from international schools.

Japanese school fees (2026 school year)

School	On admission	Tuition (monthly)	Other (monthly)	Approximate annual cost (elementary)
Japanese School of Kuala Lumpur	Admission fee RM 4,000 + facility expansion contribution RM 5,000	Elementary RM 1,670 / junior high RM 1,890	School maintenance contribution RM 370, PTA fee RM 8	RM 24,576
Japanese School of Johor	Admission fee RM 4,000 + facility fee RM 3,000 + Japanese Association donation RM 4,000	Elementary RM 920 / junior high RM 1,050	Facility fee RM 50	RM 11,640
Penang Japanese School	Admission fee RM 4,500 (secondary source, as of 2024)	RM 1,070 (same)	Facility expansion fee RM 100 (same)	Estimated from monthly fees at RM 14,040 a year (secondary source; please verify)

The elementary section of the Japanese School of Kuala Lumpur costs about RM 24,576 a year. Compared with Year 3 at the top KL international schools in the table above (RM 86,500–106,204), those schools cost 3.5 to 4.3 times as much, and for Year 7 (RM 102,400–118,674) 4.2 to 4.8 times as much. The Japanese School of Johor is cheaper still, at about RM 11,640 a year. School bus fees are extra, however (RM 409.50 a month in Kuala Lumpur and about RM 400 in Johor).

On the other hand, Japanese schools do not sponsor student visas. Admission requires Japanese nationality and a long-stay visa for both parent and child. The Japanese School of Kuala Lumpur accepts long-stay visas such as the Employment Pass, Dependant Passes and MM2H; short-term Social Visit Passes are not accepted. The Long Term Social Visit Pass (LTSVP), which is what the Guardian Pass actually is, is different from a short-term Social Visit Pass, but we could not confirm from public information whether it counts as a "long-stay visa" for the school's purposes. If you are considering a Japanese school on the mother-and-child route, check directly with the school before applying. Transfers are accepted at any time, but for the third year of junior high, procedures must be completed by May 31 and the child must enrol by June 1. The Japanese School of Johor states that, as a rule, admission and transfers are from the start of the new school year.

*The Penang Japanese School does not publish fees on its official website; the figures above are from a secondary source as of 2024. Please confirm the actual amounts directly with the school.

For families returning to Japan: future schooling and keeping up Japanese

Families taking secondary-school children who decide only on "going there" can later run into trouble. If a child moves in the first year of junior high, they will spend all three junior high years abroad. Whether they will sit Japanese high school entrance exams, continue to high school locally, or aim for a university abroad affects the choice of school and curriculum. The British system (IGCSE to A-Level) and the American system or IB are treated differently in Japanese returnee admissions and in applications to overseas universities.

Maintaining Japanese is also something to decide before departure. At an international school, the only time spent in Japanese will be at home and at a supplementary school. Malaysia has Saturday supplementary schools such as the Penang Japanese Supplementary School and the Perak Japanese Supplementary School in Ipoh (listed by the Consulate-General of Japan in Penang). If you choose a Japanese school instead, the challenge becomes where to secure an English-language environment.

How to handle enrolment at the child's school in Japan (remaining enrolled while studying abroad, or withdrawing) must be confirmed with the school and the local board of education in Japan. Practice varies by municipality and school, so this article cannot give a general answer.

Where to live: Kuala Lumpur, Penang and Johor Bahru compared

The three cities differ not only in school fees but also in rent, traffic, safety and climate. Here is the overall picture first.

The three cities compared (as of September 2026)

Item	Kuala Lumpur	Penang	Johor Bahru
Rent (core range for 3 bedrooms)	Mont Kiara RM 5,000–9,000	Tanjung Tokong RM 2,500–4,000	Iskandar Puteri RM 3,300–3,700
International schools (Year 7, range at major schools)	RM 102,400–118,674	RM 46,917–71,400	RM 42,150–141,300 (polarised)
Japanese school	Yes (kindergarten to junior high)	Yes (elementary to junior high)	Yes (elementary to junior high)
Traffic (congestion level, 2025 TomTom)	43.4% / 84 hours a year	56.7% / 100 hours a year (worst of the three)	39.5% / 65 hours a year
Urban rail	LRT, MRT and monorail	None	None
Crime (recent trend) *Indicators and periods differ, so the cities cannot be ranked	City: reported crime in 2025 down about 50% year on year	State: index crime January–September 2025 down 28.7%	State: index crime January 1 – December 1, 2025 up 2.32%
Rainfall	2,845 mm a year. Wettest month: November, 355 mm	Around 180 mm a month from April to November, around 70 mm a month in January–February (annual figure not confirmed)	2,355 mm a year. Wettest month: December, 245 mm
Dry season	Not distinct	January–February (clearly defined)	February and June
Private hospitals with Japanese-language support	Many (several Japanese-language desks)	Available (Japanese staff)	Limited
Access to Singapore	About 1 hour by air	About 1 hour 20 minutes by air	Adjacent, across a land border

Rent: Penang and Johor cost about half of KL's main areas

In Kuala Lumpur, rents differ by a factor of 3 to 4 depending on the area. In Mont Kiara, Bangsar and Desa ParkCity, where many Japanese residents live, three-bedroom units are mostly RM 5,000–9,000, and nearly all are furnished. The same three bedrooms in Bukit Jalil can be found from RM 1,500–2,500.

In Penang, three-bedroom units cost RM 2,500–4,000 in Tanjung Tokong, popular with foreigners, and RM 2,000–3,000 around Gurney (over RM 7,000 in luxury buildings). In Iskandar Puteri / Medini in Johor, the core range is RM 3,300–3,700, and furnished units are the norm here too. Bukit Indah and Mount Austin are mainly landed houses, and many properties are unfurnished.

*Rents reflect actual market levels based on listings on property portals (iProperty, PropertyGuru) in August–September 2026. Government statistics (NAPIC) do not publish rental market data.

Traffic, safety, haze and daily life: where assumptions and actual data diverge

"Kuala Lumpur has the worst traffic" is wrong by the numbers. In TomTom's 2025 data, Penang (George Town) is the worst of the three cities on both congestion level and annual time lost, at 56.7% congestion and 100 hours lost a year in rush hour. Kuala Lumpur is at 43.4% and 84 hours, and Johor Bahru at 39.5% and 65 hours. Penang's island geography is a major constraint. In terms of year-on-year change, however, Penang improved by 0.5 points and Kuala Lumpur worsened by 0.9 points, while Johor Bahru worsened the most, by 2.6 points.

On safety, the three cities are moving in opposite directions. "Index crime" below is the indicator compiled by the Royal Malaysia Police covering violent crimes such as murder, robbery and assault, and property crimes such as theft and vehicle theft. Reported crime in Kuala Lumpur fell about 50% year on year in 2025 (the city authorities attribute this to deploying 10,000 AI-enabled CCTV cameras), and index crime in Penang fell 28.7% in January–September 2025. Johor state, however, recorded 5,021 index crimes in 2025 (January 1 – December 1), up 2.32% on the same period a year earlier, an increase (the clearance rate improved from 63.3% to 66.02%). These three figures differ in indicator, period and whether they cover a city or a state, so they cannot be used to rank the cities. Look only at the direction of change. Nationwide, index crime in 2024 was 58,255 cases, up 11.1% year on year. Commercial crime (fraud) is worsening in Penang, with 13,777 reports in the first half of 2025 and total losses of RM 174.6 million.

Haze cannot be avoided in any of the three cities. As of September 17, 2026, 30 locations nationwide were in the "unhealthy" range (API 101–200), including Kuala Lumpur (Cheras 155), Penang (Minden 153) and Johor (Batu Pahat 155). The main haze season is the southwest monsoon from May to September, peaking in July–September. None of the three cities has a clear advantage.

In practice, Malaysia being a Muslim-majority country has limited impact on daily life. The main points are longer Friday lunch breaks and modest dress being advisable at government offices and religious sites; non-Muslims are not required to follow religious rules. For alcohol, excise duty on beer was raised by 10% on November 1, 2025, and a can of beer costs about RM 8–10 in Peninsular Malaysia. The legal drinking age is 21.

Cost of living: budget on the assumption that foreigners get no subsidies

The biggest change in 2025–2026: subsidies are now drawn along lines of nationality

The claim that "fuel and transport are cheap in Malaysia" no longer applies to foreigners in 2026.

Items priced differently for citizens and foreigners (as of September 2026)

Item	Malaysian citizens	Foreigners (including MM2H and Employment Pass holders)	Difference
RON95 petrol	RM 1.99/L (BUDI95)	RM 4.02/L (unsubsidised market price)	About 2.0 times
Kuala Lumpur transit pass (30 days unlimited)	My50, RM 50 (reportedly requires identity verification with MyKad)	Rapid Bulanan, RM 150 (officially stated to be open to all passengers)	3 times
Service tax on international schools	Not taxed if annual tuition is RM 60,000 or less	Taxable simply because the student is foreign	—

In addition, stamp duty on residential property and real property gains tax (RPGT) also have separate rates for foreigners. These are covered in the tax section below.

The BUDI95 subsidy (RM 1.99/L) is limited to Malaysian citizens with a valid driving licence and MyKad. The Ministry of Finance's announcement states clearly that "from September 30, 2025, non-citizens and large businesses will not be eligible for the subsidy", and MM2H participants are also excluded. For a household using 150 L a month, as in the cost-of-living model below, the difference is about RM 3,654 a year (calculated using prices for the week of September 10–16, 2026).

The Kuala Lumpur transit passes offer the same 30 days of unlimited LRT, MRT, monorail and bus travel, but My50 costs RM 50 and Rapid Bulanan RM 150. Rapid KL describes Rapid Bulanan as open to "all passengers, including non-Malaysians", while My50 is reported to be for Malaysians (the official page for the Rapid Penang version states it is "for all Malaysians"). Assume that the one foreigners can reliably use is the RM 150 pass.

Monthly model for a family of four (excluding school fees)

Based on the above, here is a monthly guide for a family of four with one car, mostly cooking at home. School fees are extra. Rent is taken near the middle of each city's core range, except Kuala Lumpur, where RM 6,500 is used, toward the lower end of RM 5,000–9,000. Living in a RM 9,000 unit in Mont Kiara would bring the total to RM 17,300–18,500 a month.

Living costs for a family of four (excluding school fees, monthly)

Item	Kuala Lumpur (Mont Kiara)	Penang (Tanjung Tokong)	Johor (Iskandar Puteri)
Rent (3 bedrooms, furnished)	RM 6,500	RM 3,200	RM 3,500
Food (mostly home cooking + eating out a few times a week)	RM 2,500–3,500	RM 2,200–3,000	RM 2,200–3,000
Electricity and water (air conditioning in constant use)	RM 300–450	RM 280–420	RM 320–470
Telecoms (fibre + 2 mobile lines)	RM 200–250	RM 200–250	RM 200–250
Petrol (150 L a month, unsubsidised)	RM 603	RM 603	RM 603
Medical insurance (family, international plan)	RM 4,679	RM 4,679	RM 4,679
Total (including insurance)	RM 14,800–16,000	RM 11,200–12,200	RM 11,500–12,500

Most of the difference between the cities comes from rent, and whether you assume self-arranged medical insurance also moves the total by more than RM 4,000 a month.

Food costs depend on how much Japanese or other imported food you eat. Local hawker meals cost RM 4.50–11.50 each (a June 2026 price survey in Penang). At import-oriented supermarkets in Kuala Lumpur, 5 kg of rice costs RM 34.50, 1 L of milk RM 7.49, 227 g of butter RM 13.80 and 200 g of shredded cheese RM 17.50; the more an item depends on imports, such as dairy and processed foods, the more expensive it is. Note that Malaysian food prices have risen substantially over a little more than a decade: according to the Department of Statistics, nasi lemak rose from RM 2.03 to RM 3.68 (+81%) and roti canai from RM 0.90 to RM 1.54 (+71%) between 2011 and 2024.

Whether to employ domestic help is another variable specific to Malaysia. A part-time helper once a week costs around RM 480 a month, and a full-time live-in helper is said to cost RM 2,500–4,500 a month (salary, accommodation, food and annual costs combined). Under MM2H, only the Platinum tier is allowed to bring a maid; we could not confirm from the Immigration Department's published information whether other tiers or Employment Pass holders may employ a live-in domestic helper. If your financial plan assumes such employment, confirm this in advance.

Healthcare: private hospitals offer Japanese-language support, but insurance becomes a fixed cost

Foreigners can use public hospitals, but non-citizen rates apply. The foreigner rates published by hospitals under the Ministry of Health are RM 40 for a general outpatient visit, RM 120 for a specialist outpatient visit, RM 100 for emergency care and RM 160 a day for a third-class ward. The amounts themselves are not high, but a deposit of RM 7,000–11,000 is required for first-class admission (we could not confirm from the Ministry of Health's unified fee schedule whether this is uniform nationwide).

In practice, most Japanese residents use private hospitals. Typical prices are RM 30–80 for a GP consultation, RM 250–400 for a first specialist consultation, RM 1,000–2,500 for an MRI, RM 8,000–14,000 for a normal delivery package and RM 15,000–22,000 for a caesarean section. A private room costs RM 300–600 a night.

Kuala Lumpur stands out for Japanese-language support. According to the Japanese Association of Kuala Lumpur, Gleneagles Kuala Lumpur, Prince Court Medical Centre, Pantai Hospital, Parkcity Medical Centre, Subang Jaya Medical Centre and Sunway Medical Centre have Japanese-speaking staff or Japanese-language desks, and several clinics have Japanese interpreters. In Penang, Island Hospital, Loh Guan Lye and Penang Adventist Hospital are said to have Japanese staff. Johor Bahru is the most limited of the three, with options such as KPJ Johor Specialist Hospital.

Medical insurance is the fixed cost that really matters. Family plans for international health insurance are said to cost roughly US$13,889 a year (about RM 4,679 a month), the largest expense after rent. The MM2H requirement mentioned earlier, "medical insurance with coverage of RM 80,000 or more", can be met for around RM 1,200 a year, but note that this is an order of magnitude below what actual hospitalisation and surgery require. The US$13,889 figure varies with age at enrolment and family composition, so obtain individual quotes.

Medical inflation in Malaysia is high. According to Aon's survey, it was 15% in 2024 and 15% in 2025, and is projected at 16% for 2026, nearly 5 points above the Asia-Pacific average (around 11%). In December 2024, Bank Negara Malaysia introduced measures capping annual medical insurance premium increases at 10% and spreading increases over at least 3 years. A private hospital association has countered that "the 15% figure overstates actual costs", so the figures should be read as a range.

Taxes: the foreign-sourced income exemption has been extended to 2036

Malaysia: resident after 182 days, income from abroad tax-free for now

Malaysian personal income tax is territorial. Residence is determined mainly by the following criteria, based on the Inland Revenue Board's Public Ruling 11/2017.

• You were in Malaysia for 182 days or more in the year
• You were in Malaysia for fewer than 182 days in the year, but that period is linked to a continuous period of 182 days or more in the previous or following year
• You were in Malaysia for 90 days or more in the year, and in 3 of the previous 4 years you were resident or present for 90 days or more
• You were not in Malaysia at all in the year, but you are resident in the following year and were resident for the 3 consecutive preceding years

Temporary absences for work-related business trips, illness of yourself or a close relative, and social visits totalling no more than 14 days can be counted as days in Malaysia.

Residents are taxed at progressive rates according to taxable income. There are no changes to the brackets for year of assessment 2026. Non-residents are taxed at a flat 30% and cannot claim personal reliefs.

Income tax rates for resident individuals (Inland Revenue Board; no change to brackets for YA 2026)

Taxable income (RM)	Rate
0–5,000	0%
5,001–20,000	1%
20,001–35,000	3%
35,001–50,000	6%
50,001–70,000	11%
70,001–100,000	19%
100,001–400,000	25%
400,001–600,000	26%
600,001–2,000,000	28%
2,000,001 and above	30%

This is the point in this article we most want to correct. Many sources still say that "Malaysia's tax exemption on foreign-sourced income ends at the end of 2026", but under P.U.(A) 451/2024, gazetted on December 24, 2024, the exemption on foreign-sourced income for resident individuals has been extended by 10 years to December 31, 2036 (the extension applies from January 1, 2027). The exemption is subject to conditions such as the income having been taxed in the source country, and income received through a partnership business in Malaysia is excluded.

Malaysia: surcharges for foreigners on assets coming in and going out

While income is lightly taxed, taxes related to assets are set higher for foreigners.

Asset-related taxes in Malaysia (as of September 2026)

Tax	Details
Inheritance / estate tax	None (estate duty abolished on November 1, 1991). Its reintroduction has been debated repeatedly
Gift tax	No provision imposing it could be identified
Capital gains tax (introduced 2024)	Applies to companies, LLPs, trusts, etc. Does not apply to individuals
Real property gains tax (RPGT)	Foreigners: 30% up to the 5th year after acquisition, 10% from the 6th year (citizens and permanent residents: 0% from the 6th year)
Stamp duty on residential property	For instruments of transfer executed on or after January 1, 2026, a flat 8% for foreigners (4% up to 2025)
Minimum price for foreigners buying homes	Set by each state. Kuala Lumpur and Johor: RM 1,000,000; Penang Island: RM 1,000,000 for strata units and RM 3,000,000 for landed property; Penang mainland: from RM 500,000 (as compiled in February 2026)

Note that the state minimum purchase price for foreigners and the purchase requirement for each MM2H tier are separate, and whichever is higher is the effective floor. State criteria can change, so check with the state government and the Economic Planning Unit before buying.

Japan side: moving-out notification, pension, resident tax and exit tax

If you are leaving Japan, getting the order of procedures wrong can create unnecessary costs.

What to do before and after leaving Japan

Item	Details	Timing
Moving-out notification (overseas)	Filed when you expect to stay abroad for roughly a year or more. Cannot be accepted retroactively	From about 14 days before departure up to the day of departure
National Health Insurance	Coverage ends with the moving-out notification. A loss-of-coverage notification at the counter is required. Without the moving-out notification, premiums keep accruing	At the same time as the moving-out notification
National Pension (for Japanese nationals)	You can choose voluntary enrolment while living abroad (Japanese nationals aged 20 to under 65). The premium for fiscal 2026 is JPY 17,920 a month. Periods without voluntary enrolment become "aggregate periods" that count toward eligibility but are not reflected in the pension amount	Easier to arrange before departure
Resident tax	The assessment date is January 1. Even if you leave partway through the year, you must pay that fiscal year's tax in full. Notify a tax agent by 10 days before departure	Before departure
Income tax	Non-residents are taxed only on Japan-source income. Rent from property in Japan is subject to 20.42% withholding at payment. If you need to file a return, appoint a tax agent	Before departure
Exit tax (taxation on departure)	If you hold securities etc. worth JPY 100 million or more and had a domicile or residence in Japan for more than 5 of the 10 years before departure, you are taxed as if you had sold them. Tax can be deferred for 5 years (up to 10 with an extension)	Notification before departure

The table above assumes people enrolled in National Health Insurance and the National Pension, such as the self-employed or retirees. If you live abroad while remaining a company employee, your health insurance may stay with your employer's health insurance society (or the Japan Health Insurance Association) and your pension with the Employees' Pension Insurance, so the explanation above may not apply as is. Always check with your employer which schemes you remain in and how the company treats overseas residence. We were unable to confirm in our research whether Japan and Malaysia have a social security agreement.

The Japan–Malaysia tax treaty (signed and in force in 1999; amending protocol in force in 2010) resolves cases where a person is resident in both countries in the following order: permanent home, the country with which personal and economic relations are closer, habitual abode, nationality, and agreement between the two authorities. Employment income is taxed only in the country of residence if the stay does not exceed 183 days in the calendar year, the remuneration is paid by an employer who is not a resident of the country of stay, and it is not borne by a permanent establishment in that country. Japan uses the foreign tax credit method.

The 182-day test under Malaysian domestic law and the "183 days in a calendar year" in Article 15 of the tax treaty serve different purposes. Do not confuse them. We summarise the Japanese tax pitfalls of moving abroad in taxes and resident registration procedures when moving abroad (in Japanese).

Common regrets, mistakes and downsides of moving to Malaysia

This topic is often searched with words like "disaster" or "regret", but a collection of personal stories is not a basis for decisions. Narrowing down to factors that can be verified with rules and figures, they come down to the following four.

1. The biggest factor is the exchange rate: it is not Malaysian prices but the value of the yen that changed

This section is aimed at households whose income is in Japanese yen. Based on Bank Negara Malaysia's published rates, the ringgit rose from an annual average of JPY 26.505 in 2021 to JPY 38.31 on September 18, 2026, an increase of about 45% in five years. Meanwhile, according to the Department of Statistics Malaysia, consumer price inflation in 2025 was 1.4% (food 2.1%, education 2.3%, health 1.2%), an extremely low level.

As noted in the cost-of-living section, Malaysian food prices have risen over the long term. However, recent inflation and the exchange-rate movement are of completely different magnitudes.

Converting this article's cost-of-living model (Kuala Lumpur, family of four, RM 14,800 a month) into yen gives JPY 392,274 at the 2021 average rate and JPY 566,988 in September 2026. Even if Malaysian prices had not risen by a single ringgit, the burden in yen would have increased by JPY 170,000 a month, or JPY 2.1 million a year. For families relocating on a yen income, this is the largest risk factor.

The yen figures here use a single rate of RM 1 = JPY 38.31. September 18, 2026 was the day the Bank of Japan raised its policy rate to 1.25%, and the yen briefly weakened to the 158 per dollar range. Rates can move sharply even over short periods. Because everything moves with the exchange rate, judge your own tolerance using the following range.

Living costs at different exchange rates (Kuala Lumpur, family of four, RM 14,800 a month, excluding school fees)

RM 1 =	Monthly	Annual	Difference from this article's assumption (annual)
JPY 30 (around the 2022 level)	JPY 444,000	JPY 5.328 million	−JPY 1.476 million
JPY 35	JPY 518,000	JPY 6.216 million	−JPY 588,000
JPY 38.31 (this article's assumption)	JPY 566,988	JPY 6.804 million	—
JPY 42	JPY 621,600	JPY 7.459 million	+JPY 655,000
JPY 45	JPY 666,000	JPY 7.992 million	+JPY 1.188 million

As noted in the healthcare section, Malaysian medical inflation is projected at 16% in 2026. Given that family medical insurance is a fixed cost on the order of US$13,889 a year, a long-term financial plan must factor in the exchange rate and medical costs separately.

2. There is precedent for rules changing and new conditions being applied to existing participants

MM2H conditions were raised sharply in 2021. The required monthly offshore income quadrupled from RM 10,000 to RM 40,000, the fixed deposit went from RM 150,000–300,000 to RM 1,000,000, and proof of liquid assets rose 3 to 4 times. The visa validity was halved from 10 years to 5, and a minimum stay requirement was introduced (under the current scheme, 90 days a year for those under 50).

The problem was how existing participants were treated. The Ministry of Home Affairs explained at the time that "existing participants may apply for an extension on condition that they comply with the new conditions if they wish to continue participating". In other words, existing participants were not automatically protected, and the new conditions were applied on renewal. As a result, in the first 10 months after the post-2021 scheme (eMM2H) began, new applications numbered only 267, while 1,461 people left in the same period. Approvals, which peaked at 6,195 in 2017, fell to a total of 1,905 over roughly two years from November 2021 to September 2023.

Since the 2024 restructuring, numbers have recovered: 3,172 approvals in 2025 (9,038 participants), 83.5% of them Silver. Still, the 2021 precedent should be read as meaning "there is no guarantee that the conditions published now will last 10 years". We could not find official rules on how participants under the pre-2021 scheme will be renewed following the 2024 revision.

3. Lines between foreigners and citizens were drawn one after another in 2025–2026

From 2025 to 2026, changes raising the burden on foreigners came in quick succession. All of them directly affect the economics of relocating.

• July 1, 2025: 6% service tax on private and international schools (services provided to foreign students are taxable)
• September 30, 2025: BUDI95 fuel subsidy launched. RON95 costs RM 1.99/L for citizens; foreigners pay the unsubsidised market price (RM 4.02/L as of September 2026)
• January 1, 2026: stamp duty for foreigners on instruments of transfer of residential property raised from 4% to 8%
• January 1, 2026: Kuala Lumpur transit passes revised; My50 kept at RM 50, while Rapid Bulanan, open to all passengers including non-Malaysians, costs RM 150
• June 1, 2026: Employment Pass minimum salaries raised in every category (Category I from RM 10,000 to RM 20,000 a month)

Each was covered in earlier sections, but adding up a year's worth changes the picture. For a family with two children at top KL schools and one car, the service tax on school fees comes to about RM 12,622, losing the fuel subsidy RM 3,654, and the transit pass RM 1,200 a year per person. A budget built on the assumption that "Southeast Asia is cheap" can be off by more than RM 17,000 a year from these three items alone.

4. Overall numbers are recovering, but the number of Japanese residents keeps falling

According to Japan's Ministry of Foreign Affairs statistics on Japanese nationals overseas, there were 19,690 Japanese nationals in Malaysia as of October 1, 2025 (17,923 long-term residents and 1,767 permanent residents), down 1.7% from 20,025 a year earlier and the third consecutive annual decline from 24,545 in 2022. Malaysia ranks 14th worldwide. The number of permanent residents also fell, from 2,093 to 1,767.

By contrast, total MM2H approvals recovered to 3,172 in 2025. Of the 56,066 valid MM2H pass holders as of January 31, 2024, China accounted for 24,765 (44%), with Japan third at 4,733. However, the two figures have different bases (the number of Japanese residents counts Japanese people, while MM2H approvals are annual counts across all nationalities). We could not find published data on the trend in the number of Japanese MM2H holders. Even so, the opposite directions, one recovering and one still falling, can be explained by the exchange rate discussed above and by the dollar-denominated requirement of a US$150,000 fixed deposit becoming heavier for yen-based households as the yen weakened.

Frequently asked questions

What is the minimum amount needed to move to Malaysia?

It differs by an order of magnitude depending on the route. For the Employment Pass, the condition is having a job lined up, and there is no financial requirement as such (the salary requirement is the real threshold). MM2H Silver requires a fixed deposit of US$150,000 and the purchase of a home worth RM 600,000 or more, so that much money is tied up. However, where the state's minimum purchase price for foreigners is higher, that becomes the floor, so to live in Kuala Lumpur or Johor the home must cost RM 1,000,000 or more, and the amount tied up rises accordingly. For a Student Pass plus Guardian Pass, actual visa costs are around RM 1,700–3,000 in the first year (plus a refundable security deposit of RM 1,000), but some schools, such as The Alice Smith School, require proof of a monthly income of roughly RM 25,000 from the sponsoring parent. On top of this you will need international school admission costs (RM 40,000–70,000 at top KL schools) and living expenses for the initial period.

If we bring our children, which visa is the most realistic?

If you plan to work, Employment Pass Category I or II plus a Dependant Pass is the most reliable. Children do not need a Student Pass and can attend school with just a Permission to Study endorsement. If you will not work, MM2H also removes the need for a Student Pass. A mother-and-child study stay (Student Pass plus Guardian Pass) has low actual visa costs, but the Guardian Pass is in principle for one parent, a Malaysian guarantor is required, processing takes at least 2 months, and some schools require proof of a monthly income of RM 25,000 from the sponsoring parent. The direct costs are low, yet the income required is higher than for the Employment Pass, a contradictory structure.

Which is best: Kuala Lumpur, Penang or Johor Bahru?

If your priorities are your children's school and healthcare in Japanese, Kuala Lumpur. If you want to keep costs down while securing quality education, Penang (even top schools cost around 60% of KL's most expensive, and rent is around half). If the goal is easy travel to and from Singapore, Johor Bahru. Note, however, that Johor is the only one of the three where crime rose in 2025, and Penang has the worst traffic of the three (56.7% congestion). The impression that "Penang is laid-back" does not match the actual traffic data.

Is it true that taxes are low in Malaysia?

For foreign-sourced income, the exemption for resident individuals has been extended to December 31, 2036 (P.U.(A) 451/2024, gazetted on December 24, 2024). There is no inheritance or gift tax, and the capital gains tax introduced in 2024 does not apply to individuals. On the other hand, foreigners pay 10% RPGT even from the 6th year, and stamp duty on residential property has been a flat 8% since January 2026. Think of it as a system that is "light on income and heavy on assets moving in and out". For Japan's 10-year rule on inheritance tax and a comparison of countries without inheritance tax, see countries with no inheritance tax and the 10-year rule (in Japanese).

How much should we budget for international school fees per year?

It varies greatly by year group and city. Taking Year 7 as a benchmark, top KL schools charge RM 102,400–118,674 a year and top Penang schools RM 49,500–71,400, while Johor is polarised between RM 98,500–141,300 (Marlborough College Malaysia) and RM 42,150 (Tenby). On top of this come one-off admission costs and, if needed, English support fees.

Can a child who does not speak English get in?

It depends on the school. Some, such as Prince of Wales Island International School, do not set a strict minimum, while Marlborough College Malaysia requires B2 or above on the Oxford English Placement Test for entry from the Senior school onward. English support (EAL/ESOL) is an additional RM 2,000–5,000 per term. EAL in Mont'Kiara International School's fee schedule goes up to Grade 10, and there is no entry for Grades 11 and 12. If you are considering entry at high school level, your child's English needs to be built up first.

What happens to Japanese pension and health insurance?

Filing a moving-out notification ends your National Health Insurance coverage. Japanese nationals can choose voluntary enrolment in the National Pension while living abroad; the premium for fiscal 2026 is JPY 17,920 a month. Periods without voluntary enrolment become "aggregate periods" that count toward the 10-year eligibility period for the old-age basic pension but are not reflected in the pension amount. Resident tax is assessed as of January 1, so even if you leave partway through the year you must pay that fiscal year's tax in full.

Will the MM2H conditions change again?

We cannot say for certain, but as explained above, in 2021 the new conditions were applied to existing participants at renewal. Build some margin into your financial plan on the assumption that there is no guarantee the current conditions will be maintained at renewal.

Summary

The requirements for moving to Malaysia depend almost entirely on which status you enter on. If you will work, the Employment Pass (for applications from June 1, 2026, Category I requires a monthly salary of RM 20,000 and Category II RM 10,000; family members are now allowed even under Category III). If you will not work, MM2H (Silver: US$150,000 fixed deposit plus a home worth RM 600,000 or more). If the purpose is your children's schooling, a Student Pass plus Guardian Pass, but the Guardian Pass is in principle for one parent and a Malaysian guarantor is required.

Costs vary greatly by city. With children in Year 3 and Year 7 at top schools and a three-bedroom rental, school fees and rent alone come to about RM 288,000 a year in Kuala Lumpur (The Alice Smith School / Mont Kiara at RM 6,500 a month) and about RM 156,000 a year in Penang (Uplands International School / Tanjung Tokong at RM 3,200 a month). Tuition in both cases is before tax; adding 6% service tax gives about RM 301,000 and RM 163,000 respectively. Living costs (excluding school fees) for a family of four are roughly RM 14,800–16,000 a month in Kuala Lumpur and RM 11,200–12,500 a month in Penang and Johor.

On taxes, the exemption on foreign-sourced income for resident individuals has been extended to 2036, and there is no inheritance or gift tax. On the other hand, in 2025–2026 lines between foreigners and citizens were drawn one after another for fuel subsidies, transit passes, stamp duty on property and service tax on school fees. And for anyone earning in yen, the biggest variable is the exchange rate: the ringgit has risen about 45% against the yen in five years. Plan on the assumption that even if Malaysian inflation is 1.4% a year, living costs measured in your home currency can move in a completely different way.

Finally, here is the order in which to get started.

• 1. Decide on your status. Your relationship with your employer (local employment or remote work for a company abroad), your funds and how many years you want to stay will narrow down the available routes
• 2. Choose the school first. From secondary level, some year groups are closed. Check vacancies more than a year before moving and secure dates for applications and assessments
• 3. Start the visa only after the school has accepted your child. For a mother-and-child stay, the Guardian Pass cannot be applied for until the child's Student Pass is approved
• 4. Do procedures in Japan just before departure. The moving-out notification can be filed from about 14 days before departure, and a tax agent must be notified by 10 days before departure
• 5. Set your exchange-rate tolerance. Deciding in advance at what exchange rate you can still continue keeps your decisions steady

References (primary sources)

• Immigration Department of Malaysia: Employment Pass (ESD)
• Immigration Department of Malaysia: official FAQ on the revised expatriate salary policy (PDF)
• Immigration Department of Malaysia: notice of the salary policy revision (effective June 1, 2026)
• Immigration Department of Malaysia: Dependant Pass
• Immigration Department of Malaysia: Student Pass
• Immigration Department of Malaysia: Long Term Social Visit Pass
• Immigration Department of Malaysia: Entry Permit (permanent residence)
• Immigration Department of Malaysia: Premium Visa Programme official FAQ (PDF)
• Ministry of Tourism, Arts and Culture: official MM2H guidelines
• MDEC: DE Rantau Pass official FAQ v10.0 (August 28, 2026, PDF)
• TalentCorp: Residence Pass-Talent
• Inland Revenue Board (LHDN): Public Ruling 11/2017 on residence status (PDF)
• Inland Revenue Board (LHDN): tax treatment of residents and non-residents (PDF)
• Inland Revenue Board (LHDN): real property gains tax (RPGT) rates
• ACCA: Finance Act 2024 (Malaysia), extension of the foreign-sourced income exemption
• Bloomberg Tax: P.U.(A) 451/2024, 10-year extension of the foreign income exemption (gazetted December 24, 2024)
• Ministry of Finance Malaysia: RON95 at RM 1.99 for Malaysian citizens (BUDI95)
• Department of Statistics Malaysia (DOSM): analysis of the 2025 annual consumer price index
• Department of Statistics Malaysia (DOSM): Crime Statistics, Malaysia 2025 (reference year 2024)
• Bank Negara Malaysia (BNM): exchange rates (middle rate on September 18, 2026, US$1 = RM 4.0808)
• Malaysian Meteorological Department: climate of Malaysia
• TomTom Traffic Index: Malaysia (2025 data)
• The Alice Smith School: fees (2026/27)
• The Alice Smith School: immigration, Student Pass and Guardian Pass
• The Alice Smith School: vacancies by year group
• Garden International School: fees (2026/27)
• Mont'Kiara International School: fees (2026/27)
• IGB International School: fees (2026/27)
• IGB International School: student passes and visas
• Sri KDU: visas and security deposits for international students (PDF)
• Tenby International School: fees (Greater KL, Penang, Johor)
• Uplands International School Penang: fees (2026/27)
• Prince of Wales Island International School: fees (2026/27, PDF)
• Stonyhurst International School Penang: fees (2026/27)
• Marlborough College Malaysia: fees (2026/27)
• Raffles American School: fees
• Japanese School of Kuala Lumpur: elementary and junior high fees (2026 school year)
• Japanese School of Kuala Lumpur: Admission Handbook 2026 (PDF)
• Japanese School of Johor: admission information
• Japanese Association of Kuala Lumpur: hospital information
• Embassy of Japan in Malaysia: visas and immigration (visa-free stays for Japanese nationals)
• Consulate-General of Japan in Penang: education information (supplementary schools)
• Japan's Ministry of Foreign Affairs: statistics on Japanese nationals overseas (as of October 1, 2025, PDF)
• Japan's Ministry of Foreign Affairs: statistics on Japanese nationals overseas (as of October 1, 2024, PDF)
• National Tax Agency, Tax Answer No. 1478: special rules on capital gains when leaving Japan (exit tax)
• National Tax Agency, Tax Answer No. 1926: real estate income etc. while working abroad
• Japan Pension Service: voluntary enrolment in the National Pension (while living abroad)
• Japan Pension Service: aggregate periods
• Ministry of Finance Japan: Japan–Malaysia tax treaty (list of treaties)
• Mitsubishi UFJ Research & Consulting: foreign exchange rates (middle rate on September 18, 2026)
• BERNAMA: the 2021 MM2H revision and treatment of existing participants (Ministry of Home Affairs)
• The Edge Malaysia: trend in MM2H approvals
• IMI Daily: 3,172 MM2H approvals in 2025
• IMI Daily: 56,066 valid MM2H passes (as of January 31, 2024, parliamentary reply)
• BMCC / TraTax: SST on private education (from July 1, 2025)
• RDS Law Partners: key stamp duty changes from January 1, 2026
• Aon survey (press report): Malaysian medical inflation at 16% in 2026
• Paul Tan: fuel prices in Malaysia (weekly)
• Paul Tan: Rapid KL pass revision (from January 1, 2026)
• Pacific Prime: typical health insurance premiums in Malaysia
• Rapid KL: My50 pass

The conditions and costs in this article are based on information published as of September 20, 2026. Yen figures in the exchange-rate section use RM 1 = JPY 38.31 (the Mitsubishi UFJ Research & Consulting middle rate of US$1 = JPY 156.32 on September 18, 2026, divided by Bank Negara Malaysia's rate of US$1 = RM 4.0808 on the same day).