According to the International Monetary Fund in 2017 Malaysia ranked 3rd out of 10 in terms of per capita income across the countries of ASEAN, above Thailand, but below Singapore and Brunei.
Malaysia is not the cheapest country to visit in South East Asia, and its people far from the poorest, however, by the same token Malaysia is an affordable place to stay in relation to the cost of living in Western Europe and North America particularly when the price of accommodation is taken out of the equation; food, electric and fossil fuels are comparatively cheap in Malaysia.
Incomes in Malaysia
The average monthly salary in Malaysia is in the region of RM3,400, which is around $800 USD. As point of comparison the average monthly salary in Thailand is around 17,500 THB (about $500 USD) and in Myanmar, the country with the lowest average income in the ASEAN group, the average monthly salary is around 360,000 MMK (about $170 USD).
By South East Asian standards people in Malaysia are relatively wealthy.
You get around 5 Malaysian Ringgit to £1The average income statistics, however, are most likely slightly misleading as Malaysia is believed to have the highest levels of income inequality in South East Asia. According a 2004 report by the United Nations the richest 10% of the country controlled 38.4% of the country’s income whilst the poorest 10% received only 1.7% of the Malaysia overall income.
In rural communities, particularly in East Malaysia people get by on very little and the cost of living in places which are less economically vibrant is very low.
Cost of Accommodation in Malaysia
A three bedroom apartment in Kuala Lumpur city centre will cost you on average between RM2,700 and RM4,500 ($550 to $1,030 USD) a month to rent. A room in a 3 star hotel in Kuala Lumpur will cost you between RM38 and RM150 per night ($9 to $34 USD). Prices are cheaper outside Kuala Lumpur. For example you can expect to pay RM1,700 per month to rent a 3 bedroom apartment in Melaka and RM1,450 per month for a 3 bedroom apartment in Ipoh.
Cost of Food In Malaysia
Food is cheap in Malaysia. If you eat at an inexpensive small restaurant or in a food court expect to pay between RM4 and RM10 for a meal ($0.9 to $2.3 USD). In a mid-range restaurant expect to pay around RM25 ($5.7 USD) per person for a meal with starters and a soft drink.
Basic foodstuffs are also cheap if purchased at a market or a supermarket. 1 kilo of onions will cost around RM4.5 ($1.00 USD), a kilo of rice RM4 ($0.9 USD) and a kilo of chicken RM12.5 ($2.9 USD). Alcohol though is relatively expensive and a 0.5 litre bottle of local beer bought at a shop will cost you around RM11.5 ($2.6 USD).
RM750 ($172 USD) should be more than enough to feed 2 people for a month in Malaysia if you avoid expensive restaurants and expensive imported foodstuffs.
Cost of Transport In Malaysia
Train travel and bus travel in Malaysia is also excellent value for money. A 4 hour train journey from Butterworth near Penang to Kuala Lumpur with cost you around RM50 ($11.5 USD) and the same journey by bus will cost you around RM40 ($9.2 USD). A single journey on Kuala Lumpur’s integrated rapid transport railway system will cost you between RM2 and RM3 ($0.45 to $0.7 USD) depending on your destination.