URGENT question: Salary and Cost of living in Kuala Lumpur

The main problem with what you are proposing to do is immigration.  What sort of work permit are they offering to get you?  It is illegal to work without one.  There is one under the Talent Corp programme:

http://www.talentcorp.com.my/expatriate … t-pass-II/

Second issue is the bit about getting tax refunded is not quite true. It all depends on if you work 182 days in the first calendar year.  But anyway you are not even in a tax bracket as far as I can see so would not even pay tax:

http://www.hasil.gov.my/goindex.php?kum … mp;sequ=11

Living conditions on the pay you are talking about would be impossible in my opinion. The reason is that accommodation costs will be too high. Locals can find rooms for about RM400 per month, but it is unlikely they would offer an expat a room. Most expats live in flat shares and the basic 3 bedroom unit costs RM3k in rental. Utilities would be about RM200 (no aircon). Food, well its possible to eat and drink for RM10 per meal. It is also possible to survive on RM30 per day but that is not your current standard of living. The flight to Malaysia and back will cost you two months salary to start with.

COL http://www.numbeo.com/cost-of-living/co … rrency=MYR

Rooms
www.ibilik.mywww.iroomrent.comhttp://www.mudah.my/Kuala-Lumpur/Rooms-for-rent-2100

So unless they are offering to find you suitable accommodation and get you some kind of permit so you can stay legally, I would say it would be tricky to accept.  For example, as a German you can stay 90 days on a tourist visa but you have to leave the country and return. That will cost you money to do 3-4 times in the year and it would look suspicious as they will stamp your passport in and out each time and see what you are doing and ask questions.



So some things don't add up about what you are being offered

Here is a link to the salary levels in Malaysia

Salary Guide

The rule for getting a proper work permits are you would have to be 27 or older (23 if it is to work in IT) and a minimum salary of RM5k per month plus 2 years working experience.

If you work out the exchange rate even at about 3 EUR to RM1 you will get an idea of the salary levels.

While some things are cheap in Malaysia, other things cost the same as Europe. I think groceries would cost you about RM150 per week and that includes things like washing powder and cleaning stuff. Condos have gyms so no extra cost.. Transport depends on distance, but a journey around the city area would cost about RM4 each way.

If you have no work permit you would not be able to pay tax as you could not be registered legally in any of the systems.

So it sounds like a way to reduce your salary by saying you have a tax liability when you probably don't. In normal circumstances the rule is that there is a flat rate of 26% which is non-refundable if you are non resident i.e. live in Malaysia for less than 183 days per year and also don't leave for 11 days or more during the 183 days or the clock starts ticking again. 

Only certain types of companies can hire foreigners. They are MSN companies or have a certain amount of paid up capital. In my opinion, that calibre of company would not hire you on the terms you are talking about, so I assume it is some small local company that is trying to buck the system and does not even know anything about hiring a foreigner.

Some career areas are possible for foreigners, but others are closed because they are popular with Malaysians and people from the region. The only openings will be in senior positions. Those careers are in HR and Banking or Finance particularly and the salaries are not that attractive. There is a foreign worker scheme for service jobs, manufacturing, plantation but only certain nationalities are eligible and they are all from this region or Asia, so that is not an option for you either.

http://www.mida.gov.my/env3/index.php?p … gn-workers

The cost of living is less if you live in a small town in the country somewhere.

I have read a similar story to yours a few months ago and I am not sure how it ended. I am a little concerned that there might be a bit of human trafficking going on and hope that you are sure the people you are dealing with a reputable and you will be properly taken care of. Because, if it goes wrong you have a horrible mess to clear up and even your Embassy in Malaysia would not be able to help you out.

Hey,

first I would like to thank you a lot for your reply.

Concerning the visa: I will be in Malaysia on a legal visa. I am not sure whether it will be a normal working visa or if there is a special internship visa or similar kind of visa. My way to Malaysia comes through a student organization called AIESEC, They regularly organize internships for foreigners in Malaysia. I got accepted by a company for a 1-year internship position as an event executive. AIESEC members of Sunway University will organize accomodation and visa for me. I just need to offer them the informations they need. I asked them for the salary and COL stuff and they told me that I will get 2500 RM (around 750$) by the company and that I have to pay tax of 26% which may be refunded when being 183 days in Malaysia. But since it will be not in one calender year I think this year I can not get any refund, right? Concerning the living costs they told me that accomodation would be 200-250$, food would be 200$ and tax would be 180$. I googled for fitness centers in Kuala Lumpur which will be around 60$. Is that realistic? Can I live in Malaysia on that little salary?

What neighbourhood would you be working in? Are they asking you to pay any money for this "job"? Suggest you ask them for a contact number etc. for someone they have placed already in Malaysia, so you can talk to them about the offer and how it went with the arrangements for visa, etc.

I checked about the location. The company is located in Petaling Jaya. Do you know anything about the area and about the costs of living etc. there? My contact person in AIESEC is on vacation until monday so I do not have a possibility to contact him right now.

Is there also something I need to know about living in Malaysia as a woman since it is a muslim country? There are so many questions left since I do not know that much about Malaysia and its culture. I also don´t know about Entertainment and stuff in Malaysia. I also got offered a one year internship position in China. The salary is pretty good but the job is not very interesting to me. This is why I intend to accept the position in Malaysia. It is so hard to decide :-/

Malaysia has three main population components. About 65% are Muslim Malays, 25% are from Chinese ancestry and the remainder are of Indian ancestry. This is the breakdown for Peninsular Malaysia, it's different in Sabah and Sarawak (Borneo). It is considered a Moderate Islamic country (Global Movement of Moderates was established by the current Prime Minister). My opinion is it has quite a European feel to it so you wont experience the culture shock you would in China. Malaysians are friendly on the whole and easy to get along with. There are some golden rules though that have to do with "face", i.e. don't embarrass another person so they loose dignity or respect. Politeness and keeping a pretty low profile is the general rule and showing consideration to elders and seniors is expected. Socialising is frequently around food and drink. It is Ramadan now for one lunar month and Muslims will fast during daylight hours. Often colleagues who are not Muslim will also do so, out of respect, at least for part of the period. There is a little bit of etiquette about not eating or drinking in front of fasting Muslims. There are local dress codes and dressing modestly is expected at work. Some companies have rules about skirts and trousers.  It is generally best not to wear see-through clothing and anything very revealing.  I suggest you send a PM to Nemodot about AIESEC as I think he knows about them and what is going on in Malaysia. Just be a little cautious about believing everything you are told, as unfortunately in this part of the world there are still a lot of scams.

There is lots of entertainment and alcohol is readily available. It is however expensive. Soft drinks of every imaginable and unimaginable type are fashionable and fun here. Price guideline: Starbucks coffee is about RM11 but there are lots of other coffee chains, including Secret Recipe, where it costs about RM6.5. There is always a price range to suit everyone's means. Chicken Rice is about RM7 a serving in a food hall. I find your age group are go getters and work hard and play hard to have fun. Social networking is huge and everyone is addicted to their using their phones (including while riding along on a motorcycle). Malaysia is a fun place to be but it is important to take a bit of care of belongings and not expose yourself to dangers (but that is the same everywhere in the world).  There is still a hardcore of poverty and a bit of drugs problems, which does have some effects.

Hey Gravitas,

thank you a lot for all your replies.

I would wish to get some impressions about living in Malaysia instead of all the youtube travel clips, because I think they do not show the real life in Malaysia at all. I heared that people in Malaysia must be so friendly and the position is so interesting since I think that it offers high learning opportunities for me. However, it seems that 1850 RM after tax is not enough to live and travel properly in Malaysia right?

People do live on RM1500 per month, lots and lots of them (some live on RM1200). I would not imagine you would have much money left to travel in Malaysia or the region.

About the tax situation, I know that some of the educational establishments have a way of managing tax issues because they hire teachers according to academic years, so you really do need to talk to someone about that issue who has been through the process. But the tax will be deducted - whether you get it back will be by special arrangement by either the University or the employer. Everyone else who arrives after about 1st July does not get a refund. Its because the tax authorities distinguish between being a resident or not.  And as already mentioned the member on here called Nemodot may be able to assist you. 

You would be wise to get some health insurance, but it can't be the travel insurance you buy in Europe as it is only valid for one month or so. It is important to get hospitalisation cover, as that is a separate insurance class than general medical, in Malaysia.

I have always followed my heart and not my head as I wanted to travel the world and work overseas, which I have done. Personally, there is no hardship in trying. Its actually a character-building experience to live on little money. But its just important you check out what is being said and not just rely on one person to provide you with information.

First you must know that Malaysian Government Requires Westerners to make a minimum of $5000MYR a month to receive a full work permit (though there are some limited exceptions).

Second, I've been in KL almost 1 year and came with the offer of 3800MYR and housing provided. I don't drink or smoke, abuse utilities at home, and also get most of my food from night markets. That being said, I'm still not going to be coming out of this year with very much money in the bank. You can make it on your income, but you will have to live in a place with maybe 2 or 3 roommates to make rent anything less than 600MYR a month.

Third, Outside of KL is nice, but the city itself is Awful:

Know that people WILL try to rip you off because you are foreighn.

Know that Police WILL harass you and lie to you about your rights to try and get a bribe. Just 2 months ago I was randomly stopped walking (7PMish) down the road. The officer threatened to throw me in jail and cuffed/detained for about 45 minutes on the sidewalk. I had to get my GF (Malaysian) to come help me out...but really the only stopped the harassment when they realized she had secretly been filming how they were acting. This mind you, was only the worse of 3 instances in a 4 month time frame.

Know theft is HIGHLY prevalent. From watching a man on a motorcycle knock a girl over and ride of with her purse in the middle of the day, to having my car with an alarm system stolen from a place with 24 hour surveillance, this place is not safe.

Hope this helps, they are all things I wish I had known.

Dear Romina,

I am from Germany and the following information may help you.
1. Your Visa will not be an issue, i assume. You are coming with a well established organization etc.
2. Petaling Jaya is a big area close to Kuala Lumpur - considering by LRT stations (train stops: ca. 10-12)
3. Living in Malaysia is nice for people from Europe, because it combines Asia, modern city live, nightlife and travel opportunities. One year Malaysia will give you a fantastic insight view of the region and I am sure you can travel a lot.
Here is what I think will give you some basis for calculation:
4. Cost of Living can be divided into several categories. Housing, transportation, basic needs, convenience and travel. Your salary is on the very low end of Malaysia salary, but for an internship, your salary is good in my opinion. My friends get 1000 - 1500/month (all in) and work in banks as interns this semester.
4.1. Housing is key to saving money for you: Gravitas send you the best websites for rooms. I assume you would live in a Wohngemeinschaft (shared apartment) with a few people. See the websites to find something around 700-800 RM
4.2 Transportation is not so expensive if you take mainly public transport and after 11pm taxi that is a few Euros from nightlife KL (e.g. Changkat) to Petaling Jaya (LRT station: Universiti) Taxi is cheap and mostly horrible old.
4.3 We do 200 ringit basic shopping for food a week. Covering, home cooking things, fruits, veggies, milk,bred etc.
4.4 By "Convenience" I mean you buy outside food or go out for dining. Here, you would be limited to so called Mamak stores (e.g. Pelita or Mahbub) that have local (indian/malay/chinese) food and cost 10-15 ringit per meal (max 2 ringit for tea/coffee and ~10 ringit main dish like tandoori chicken and roti chennai). McDonalds meal costs 8-10 ringit. Pizza starting 20-25 ringit. Starbucks 10-15 ringit a cafe latte just to give you an idea
4.5 NOW the best thing in our life is adventure, travel and discovering new places. You can reach many places here by but for 30-50 ringit. gorgeous  islands on the east coast (Perhentian, Tioman, Redang) by bus. Then, you have the huge low cost airline AirAsia in Kuala Lumpur. You can book in advance and get very cheap flights to Cambodia, Indonesia, Thailand etc. Flights cost me the last two years on average 250-350 ringit return. e.g. Ankorwat

I am sure, you may use your own money (from home) if you love to spend more on traveling. It will be an amazing experience for sure. Dont miss to bring with you, patience, love and positive thinking to this beautiful country, Malaysia. Hope this helps.

Have a great day.
Mustafa from Friedrichshafen, Germany
PS: Prices based on July/2014 observations in KL and Bangsar

Yes many interns are not even paid at all and it is legal. Visa is not an issue.

I knew interns who survived well with just 2500rm. But of course they brought their own money with them for travelling and a bit of luxury.

About the thread warning you about police and people will try to rip you off...

It could happen a taxi driver will try to charge you 5rm extra..but thats not a big deal as it happens everywhere else.

About the police...it is not true at all. As a European girl they would be helpfull and friendly towards you.