Setting Up Shop in Southeast Asia
Living in Singapore for 3 years confirmed what we already knew: we love being in Southeast Asia, and we want to make it a permanent part of our travels. After pandemic issues started to subside in 2021, and we started planning our move out of Singapore in May, we began asking ourselves where we would find our next little spot of paradise in the region.
With a year-round tropical climate, fantastic food, incredible culture, a budget-friendly cost of living, and a location that makes it easy and affordable to travel to so many great countries nearby, Malaysia really seemed like the logical choice. Oh, and it just so happens that Deborah is from Malaysia, and her father, aunts, uncles, and too many cousins to count are spread out all over the country as well.
Some things just fall into place, and it’s wonderful when they do.
From Singapore to Malaysia
In May 2021, COVID-19 travel and entry restrictions were still in place in many countries. We decided that we wanted to move to Malaysia after leaving Singapore, and we had done enough research and fact-finding missions to know that we wanted to live on the island of Penang. However, with the restrictions in place, we were unsure how we would be able to logistically make the move happen.
We ended up negotiating a cross-border move with a local company in Malaysia. The Singaporean company would pack our belongings in Singapore, work with the Malaysian government to obtain approval for our personal goods entry (Malaysia’s COVID-19 restrictions were very stringent at the time), transfer our goods to a Malaysian company without our presence, and store our belongings in a facility in Penang until we were able to return and find a new place to live. We were unable to see the storage facility or our belongings upon arrival, and we lost the insurance coverage on our goods once they were transferred to the Malaysian company. This was not ideal, but it was the best option available to us during the unusual circumstances of the pandemic.
It wasn’t until January 2023 when we were finally able to get back to Penang to start our house hunting. This meant it had been over a year and a half since we had seen our personal belongings and the storage facility where they were packed away. Needless to say, we were very excited and nervous when we landed in Penang during Chinese New Year celebrations. We were nervous to see the condition of our personal items and excited to see if we could find a place to live that met our budget.
Why We Love Penang Island
Penang has been a coveted port for centuries, particularly for European countries operating in the Straits of Malacca during the 18th and 19th centuries. Among the Dutch, Portuguese, and English, it was the English who, in 1826, claimed the territories of Penang, Malacca, and Singapore, as part of the Straits Settlements. These territories became highly valuable to the English, facilitating the easy transportation of Malayan tin and rubber to Europe. In 1867, England formally established Malaysia as a colony, a status that endured until the Japanese invasion during World War II.
As a former British colony, Penang has long been a popular destination for Europeans. With a vibrant blend of cultures, stunning natural beauty, affordable living costs, and, until recently, an attractive residency program, Penang Island is a top choice for expats seeking to live in Southeast Asia.
Regarding the residency program, some recent post-COVID developments have introduced more stringent requirements for Malaysia’s MM2H program (Malaysia My Second Home residency program), in some cases quadrupling the entry criteria. However, due to various economic and political factors, these restrictive measures are likely to be revised soon.
Here are a few reasons why expats fall in love with Penang Island:
Cultural Melting Pot: Penang Island is renowned for its remarkable diversity of people and cultures. The island features a unique fusion of Malaysian, Chinese, Indian, and European influences, creating a vibrant and multicultural society. Expats can immerse themselves in a kaleidoscope of traditions, languages, cuisines, and festivals, offering an enriching and inclusive experience.
Food Paradise: Penang Island is acclaimed as the food capital of Malaysia, and for good reason. The island offers a vast array of culinary delights, from mouthwatering street food to elegant fine dining. The famous hawker centers are a haven for food lovers seeking authentic local dishes, such as Char Kuey Teow, Nasi Kandar, and Assam Laksa. Expats will savor the affordable prices and the opportunity to explore new flavors.
Geographic Advantages: Centrally located in Southeast Asia, Malaysia encompasses parts of the Malay Peninsula and the island of Borneo. Known for its beautiful beaches and its primary rainforest, the landscape is diverse and unique. It is also ideally situated within a region that offers much to explore. Flights to Thailand, Indonesia, Cambodia, Vietnam, and Singapore, to name a few, are inexpensive and easily accessible for weekend travel.
Weather: This depends on personal preference, but many expats, including ourselves, enjoy never having to endure freezing temperatures. In contrast, Malaysia enjoys warm weather year-round, although it can often be hot and humid. While we appreciate this tropical climate, it may not be ideal for everyone.
Quality Healthcare: Every January, we schedule our annual physical check-up at the Glen Eagles Hospital in Penang. The health screening is conducted in a state-of-the-art facility, and the doctors are highly thorough. For a standard health screening, which includes a physical examination, an EKG test with report, a stress EKG (treadmill) with report, a chest x-ray with report, an ultrasound of the abdomen and pelvis, and blood and urine tests, the cost is RM 1200, or approximately $250 USD. All tests are completed within about 3 hours, and we receive the results on the same day.
Island Beach Lifestyle: Penang boasts numerous beautiful beaches, and the laid-back island atmosphere is exactly what we cherish. Thankfully, many beaches have been preserved as traditional fishing villages, maintaining their centuries-old charm. However, there are also plenty of beaches on both sides of the island where you can relax on the sand, swim in the water, and soak up the sun. Once the new Gurney Beach Project is complete, beach life in Penang is poised to reach a new level.
Artists’ Haven: Penang is renowned for its street art, primarily concentrated in and around George Town, but it can be found throughout the island. Beautifully designed wall murals, iron sculptures, and quirky paintings hidden from plain sight are a delight to discover. You can encounter artists’ work all over the city. Live music is also readily available in Penang, from street buskers to numerous restaurants and bars.
The Budget
Our plan was to spend only 4-5 months out of the year in Southeast Asia. This meant that we needed to find a place that could accommodate all of our belongings and comfortably host family visits. We also needed to find an affordable option, as our travel budget was a fraction of what we were accustomed to spending in Singapore.
Thankfully, Penang, Malaysia, perfectly fit this bill. The cost of living is reasonable, and we fell in love with it just as much as we loved Singapore. We decided to rent for at least a year before considering a purchase, allowing us time to understand the specifics of long-term residency requirements. We also had a general idea of the desired neighborhoods, but now it was time to start viewing properties and determine the best fit for us.
Our goal was to find a two-bedroom, two-bathroom home with at least 1000 square feet. We prioritized walkability and preferred amenities like a pool and gym if it were a condominium. Parking was also essential. Our target budget was around 2000 Ringgit (RM) per month. At the time of writing this article, RM 2000 was approximately $425 USD, though the exchange rate may fluctuate slightly.
Let the Search Begin
Malaysia lacks a centralized multiple listing service (MLS) like those common in many U.S. cities. This makes finding real estate listings more challenging, as agents may market properties outside their own listings in hopes of securing buyers. Therefore, it’s crucial to invest time in finding a reliable agent who can effectively navigate the market. We were fortunate to find Jason Hau, an agent we highly recommend. With Jason’s assistance, our search was off to a good start.
The neighborhoods we were interested in offered a diverse range of homes, from properties over 30 years old to brand-new constructions. Naturally, prices varied significantly. Since our ideal property was quite specific – a two-bedroom, two-bathroom condominium with at least 1000 square feet, views, a pool, walkability, and a price under RM 2000 per month – our options were somewhat limited.
Neighborhoods We Considered
George Town: A recent addition to the UNESCO World Heritage Site, George Town is renowned for its rich architectural heritage, vibrant street art, diverse culinary scene, and warm hospitality.
A magnificent fusion of history and architecture, one of George Town’s distinctive features is its well-preserved colonial architecture, reflecting its fascinating past. Strolling through the streets, you’ll encounter elegant mansions, British colonial buildings, and Chinese shop-houses adorned with colorful facades.
For all these reasons, George Town is undoubtedly our long-term goal. However, in the short term, several other factors led us to consider other neighborhoods as well.
Let’s Make a Beach
Gurney: Gurney Drive is a coastal promenade located in the northern part of George Town. It stretches along the coastline, offering breathtaking views of the sea. The area is renowned for its vibrant atmosphere, modern shopping malls, and high-rise condominiums, making it a popular residential choice for expats. Consequently, there is significant foreign investment in the Gurney Drive real estate market.
Numerous seafood restaurants and cafes line Gurney Drive, providing diners with the opportunity to savor a meal while enjoying the scenic views.
Already a popular destination for tourists and locals, Gurney Drive is currently undergoing a significant transformation with the ambitious Gurney Beach project. This development aims to revitalize the picturesque Gurney Beach by utilizing land reclamation to create a long beachside park. According to the development plans, the park will feature, in addition to the beach itself, hawker centers, a north vantage point viewing deck, restrooms, multi-story and open-air car parks, a boardwalk, a water garden, a stormwater channel, and a water taxi jetty.
The project also involves the creation of a separate island, which will be developed for commercial and residential purposes during the final phases. The entire project is scheduled for completion within the next two years.
From a Small Fishing Village to Luxury Resorts
Batu Ferringhi: Located along the northwestern coast of Penang, is a renowned destination for its pristine stretch of golden sands and azure waters.
Originally a sleepy fishing village, Batu Ferringhi’s transformation into a tourist hotspot began in the 1970s. Recognizing the potential of its stunning beaches, the Malaysian government invested in developing infrastructure and amenities, significantly increasing the area’s appeal as a vacation destination. Batu Ferringhi also boasts a vibrant night market and numerous hawker stalls. Today, many locals in Penang perceive Batu Ferringhi as primarily frequented by expats and tourists.
While we enjoy visiting Batu Ferringhi, a significant drawback for us is its distance from George Town, and the airport is situated even further south
A Residential Haven With Stunning Views
Tanjung Bungah: Meaning “Flower Cape,” the name aptly reflects the area’s picturesque landscapes. The neighborhood boasts a relaxed and laid-back atmosphere, providing an ideal escape from the bustling city life of Georgetown, Penang’s capital. Visitors can bask in the golden rays of the sun while unwinding on the sandy shores, or partake in a variety of water sports, such as jet-skiing and parasailing, offered along the coast.
We truly enjoy staying in Tanjung Bungah due to its tranquility, stunning views, and less crowded beaches. However, walkability to restaurants, hawker stalls, cafes, grocery stores, and bars is limited. Reliable transportation is essential to fully enjoy this neighborhood.
MBF Tower
The MBF Tower, completed in 1994, was one of the tallest buildings in George Town at the time. It originally housed the Penang branch of MBF Finance Berhad.
The MBF Tower is one of the most interesting, and perhaps even quirky, buildings we’ve encountered. Depending on the angle, its design can appear somewhat unusual. However, the architectural features that seemed unconventional from the exterior created unique and spacious interiors within the units, which was a significant selling point.
The unit itself was a three-bedroom, two-bathroom apartment with approximately 1500 square feet of living space, a significant bonus. The views were truly spectacular. Moreover, it offered the closest proximity to George Town among the properties we considered.
The downside for us was that this unit exceeded our budget at RM 2500 per month. Additionally, the building showed signs of age and a lack of maintenance in certain areas.
1 Persiaran Gurney
1 Persiaran Gurney, also known as PG1, is a high-rise condominium completed in 1988, making it the oldest condominium on our list. Our agent recommended we consider it because it met all our criteria, was within our budget, the building was well-maintained by the Homeowners’ Association (HOA), and they were currently undertaking an enhancement project to upgrade the amenities, primarily the pool and gym.
The unit we viewed was a two-bedroom, two-bathroom condominium with 1200 square feet of living space, offering beach and water views. Located on the seventh floor, it provided a pleasant view, although perhaps not as dramatic as some of the higher-floor units we had seen online. Nevertheless, the layout of the condo was exceptional.
We were particularly impressed by the spacious kitchen and the generous living and dining areas. Additionally, both bedrooms enjoyed pleasant beach views across the street. The building itself was well-maintained, and the pool and gym appeared brand new following the recent renovations. The overall atmosphere within the building was also very positive. We observed groups of residents socializing by the pool, and the doorman was exceptionally welcoming.
However, there were some drawbacks. The kitchen and bathrooms could benefit from an update, and the unit lacked any outdoor space. While opening all the windows in the living room created an indoor-outdoor feel, there was no dedicated outdoor area to enjoy the beautiful evenings and watch the ships passing through the Straits.
Gurney Park Condominium
Located towards the north end of Gurney Drive, and situated directly between George Town’s most popular malls, Gurney Park Condominium (GPC) is a highly sought-after residential community for both locals and expats. The views from most units are breathtaking, with higher floors offering panoramic vistas of the sea, George Town, and the lush hills of Penang Island.
GPC held a unique advantage even before we began our property tour with our realtor. We were already staying in an Airbnb within the complex and thoroughly enjoying our stay. Our temporary residence was on the 26th floor, and we were captivated by the stunning views from every angle. When our realtor informed us about a unit available on the 36th floor within our budget, we were immediately eager to see it.
Unfortunately, the unit itself was quite dated, even a bit “brutal” in its original condition. However, the views from the 36th floor were absolutely incredible. It offered the three bedrooms and two bathrooms we desired, the desired square footage, and access to a large pool. We also recognized the significant advantage of having numerous restaurants, hawker stalls, local markets, and, of course, the beach all within a few minutes’ walk.
The crucial question was whether we could renovate this unit within our budget to make it a comfortable and livable space.
Our Place in Penang
After carefully calculating the costs, we realized that some basic upgrades would be feasible. After obtaining permission from the landlord to paint and make minor cosmetic improvements, and purchasing a new refrigerator that we would take with us upon departure, we decided to proceed. We signed the lease, officially making this unit our new home in Penang.
Aside from the abundant dining and entertainment options readily available at our doorstep, the breathtaking views, the excellent amenities, and the ease of living at Gurney Park for a portion of the year were the key factors that solidified our decision to make this condominium our home – at least for the foreseeable future. We couldn’t be more excited!