Being the country’s economic epicentre, Kuala Lumpur offers some of the most attractive career opportunities and work remunerations in the country. Workers in Kuala Lumpur earned the highest income in Malaysia, with an average income of RM4,200 as of December 2024.
According to the Department of Statistics Malaysia (DOSM), Kuala Lumpur also posted the highest job vacancies online at 81,000 jobs in 2023. However, living costs in Kuala Lumpur are also known to be some of the highest in the country, with an average basic expenditure of RM5,500 a month for housheolds comprising of three to four persons.
With the rising living costs, some residents in Kuala Lumpur may consider moving to another state after retiring. After all, during retirement, our needs will be different, and we may prefer to live a slower pace of life.
Here are five states workers in Kuala Lumpur can move to for a more affordable retirement.
#1 Negeri Sembilan
Negeri Sembilan is a state situated around 60 kilometres to the south of Kuala Lumpur. With it being near Kuala Lumpur in the central region and offering easy accessibility to main expressways in the country, Negeri Sembilan has caught the eyes of investors who want to set up base in Malaysia.
Negeri Sembilan is home to several industrial parks including the Senawang Industrial Park, Techpark @ Enstek and the currently developing green data centre in Nilai.
The state is also known for being home to holiday beach town, Port Dickson which offers various hotels and accommodations such as Thistle Port Dickson Resort and watertop villas at the Lexis Hibiscus Port Dickson. As Port Dickson is a tourist destination, you will find some attractions nearby including the Port Dickson Golf and Country Club. The Seremban Lake Garden, one of the oldest natural lake parks in the state, is situated around a 45-minutes’ drive from Port Dickson.
As urbanisation expands beyond Kuala Lumpur, there has been increased residential developments in closely situated Negeri Sembilan. For example, the residential township Nilai Impian by Sime Darby Property offers lakeside residential terrace homes with nature parks and gardens.
According to EPF’s expenditure guide, the minimum estimated cost of living for retired couples in Seremban is RM3,080 per month. This is slightly lower (-9%) compared to in Kuala Lumpur at RM3,390 a month. Basic expenses such as housing, food, utilities and social activities are cheaper in Negeri Sembilan compared to in Kuala Lumpur.
Residential property prices are significantly cheaper in Negeri Sembilan. For example, the average prices of terraced homes in Seremban and Port Dickson are RM380,000 and RM287,750. On the other hand, the average price of a terraced house in Kuala Lumpur is RM840,000.
In urbanised towns such as Port Dickson and Seremban, there are plenty of modern facilities such as public and private hospitals, clinics and convenience shops.
#2 Malacca
Situated further south of Kuala Lumpur, the state of Malacca is known for being the birthplace of the Peranakan community and cultures.
The historic city of Malacca was accorded the UNESCO World Heritage status for its abundance of government buildings, churches and squares that showcased the early history originating in the 15th-century Malay sultanate and the Portuguese and Dutch periods beginning in the early 16th century. Other popular attractions include the Jonker night market and Klebang beach. In 2024, Malacca welcomed more than 13 million visitors, according to several news reports.
Malacca also relies on manufacturing activities, with several industrial zones including the Krubong Technopark and Hicom Pegoh Industrial Park.
A retiree couple is expected to spend a minimum of RM3,000 per month living in Malacca City, which is 11.5% lower than living expenses in Kuala Lumpur. Residential properties in Malacca are also significantly more affordable than in Kuala Lumpur, with the average price of terraced homes in the state costing RM270,000.
#3 Perak
Situated north of Kuala Lumpur, the state of Perak is the second largest state of the peninsular Malaysia.
Perak state’s economy relies on diverse sectors including services and manufacturing. The state government of Perak has invested on developing industrial parks specifically in towns such as Kinta, Taiping, Manjung and Kuala Kangsar, which are involved in manufacturing of diverse products such as electrical and electronics products, non-metallic mineral products, shipbuilding, machinery and foundry, automotive and transport equipment as well as oil and gas fabrication industries.
Perak’s capital, Ipoh is a popular tourist destination among locals and foreigners who want to explore its nature limestone caves, lakes and delicious chicken rice with beansprouts.
A retired couple in Ipoh is expected to spend RM3,020 every month, which is lower (-11%) than in Kuala Lumpur. Buying a house is also cheaper in Perak compared to in Kuala Lumpur. For example, the average prices of terraced homes in Ipoh and Kampar are RM328,800 and RM278,703.
#4 Pahang
Situated in the eastern region, Pahang is the largest state of the peninsular Malaysia. The Pahang state’s economy is driven by a mixture of activities including tourism, manufacturing and agriculture.
The state is home to popular destination Genting Highlands which offers the only licensed casino in the country. Situated on a mountaintop, Genting Highlands is a tourist destination frequented by locals and foreigners alike, for its cool weather and multiple theme parks, hotels and a shopping mall. There are also several residential properties near Genting Highlands for those who want to live in a holiday destination year round. In addition, there are also tourist destinations such as Cameron Highlands and Tioman Island, which was featured in foreign film productions.
The capital of the state, Kuantan is a modern city where beach holiday destination Teluk Cempedak is only five kilometres away from the town centre. You should take note that there is a rare earths processing plant in Kuantan.
The minimum monthly expenditure of a retired couple in Kuantan is RM2,940, which is 13% lower than its counterpart in Kuala Lumpur. Property prices are generally lower in Pahang, with the average prices of terraced homes in Kuantan and Raub costing RM290,000 and RM297,000.
#5 Kedah
Situated in the northernmost region of peninsular Malaysia, Kedah state’s economic activities include services, agriculture and manufacturing with several industrial parks in the pipeline including the Kulim Industrial Corridor, Bukit Kayu Hitam Halal Hub and Logistics Centre.
Separated from the mainland lies the stunning Langkawi island, a tourism spot with luxury resorts such as Ritz-Carlton, The Datai, The Westin, The Andaman Resort and Resorts World Langkawi.
The Kedah state is situated around a two-hour drive from Penang, which offers access to modern conveniences and facilities including public and private hospitals, shopping malls and supermarkets.
Currently, the Kedah state government is led by opposition coalition, so residents of the state may have to observe certain laws that are different from those in other states led by the ruling party. For example, Kedah observe Fridays and Saturdays as off days instead of Saturdays and Sundays.
For retired couples, the cost of living is the cheapest in Alor Setar out of all states in the country. Retired couples are estimated to spend a minimum of RM2,760 per month living in Kedah, which is 18% lower than in Kuala Lumpur. The average prices of terraced homes in Alor Setar and Langkawi are more affordable at RM300,000 and RM145,000.
As we can see, the living costs for retired couples in other states are cheaper than those in Kuala Lumpur. While certain costs such as transportation and utilities may be similar across the states in Malaysia, other costs such as housing and food are significantly cheaper in some states compared to in Kuala Lumpur.
Alor Setar has the lowest costs of living out of all states in Malaysia. This is perhaps due to its considerable distance from Kuala Lumpur city centre. On the other hand, Negeri Sembilan, which is situated closer to Kuala Lumpur, has a higher living costs compared to the other states mentioned above.
Read Also: How Much Do The New EPF Retirement Income Adequacy (RIA) Framework Recommend Malaysians To Save?
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