Best Country to Retire for Indians with a Small Pension: Affordable and Peaceful Retirement in Sarawak, Malaysia

Best Country to Retire for Indians with a Small Pension: Why Sarawak, Malaysia is Ideal

When planning for retirement, many Indians believe they need crores of rupees to live comfortably abroad, especially after seeing celebrities buy villas in London or holiday homes in Dubai. However, there is an affordable and family-friendly retirement destination in Asia that allows Indians to retire peacefully without giving up their Indian passport or making huge property investments. That destination is Sarawak, Malaysia, well-known for its welcoming environment and low-cost Living via the Malaysia My Second Home (MM2H) visa program.

The State Assembly building is located near the Kuching waterfront

What is the MM2H Visa and How Does It Work?

Sarawak offers a unique MM2H visa that is simpler and more affordable than Malaysia’s famous national MM2H program, which often requires large fixed deposits and property investments. To qualify for the Sarawak MM2H visa, Indians need to place approximately ₹1 crore in a local Sarawak bank, which covers a family of four. After maintaining the deposit for about a year, they can withdraw up to half for expenses like housing, car purchase, medical bills, or children’s education. The visa lasts for 10 years and is renewable, requiring only a minimum stay of 30 days per year in Sarawak.

Unlike other visa programs, the Sarawak MM2H does not force applicants to buy property. This makes it an accessible and less complicated option for retirees looking for security, affordability, and the ability to live with family under one visa plan.

The Sarawak General Hospital

Cost of Living and Lifestyle in Sarawak

Sarawak’s cost of living is surprisingly low compared to Indian metros and other popular retirement destinations. Monthly living expenses, including rent, groceries, transport, and small luxuries, can be comfortably managed on a budget of around ₹40,000 to ₹50,000. A decent three-bedroom apartment in the city center costs about ₹40,000 per month in rent. Health care facilities in Sarawak are excellent and affordable, with private hospitals providing services at much lower prices than in India, including English-speaking staff. A typical consultation costs under ₹1,200, and health insurance for people under 60 years is often less than ₹10,000 annually.

The lifestyle in Sarawak is balanced and Indian-friendly, with familiar foods like dosa, biryani, and masala rice widely available. Indians can celebrate festivals such as Diwali and Pongal, and there are temples and religious places like the Srinivasa Temple and Guruvada Sahib. The multicultural and peaceful environment makes Sarawak a home away from home without losing cultural ties.

University Malaysia Sarawak (UNIMAS) chancellory building

Why Sarawak Over India for Retirement?

Life in Indian metros after 50 can be challenging due to hot summers, heavy monsoons causing water logging, traffic jams, and stretched healthcare services. Retiring in Sarawak offers relief from these stressors. Many retirees find the environment cleaner, quieter, and more peaceful while still living affordably. A family from Gurgaon, for example, chose to retire in Sarawak to escape constant traffic, power cuts, and noise. They now enjoy remote work flexibility, children’s schooling, and leisurely evenings by the river or parks.

In addition, the Sarawak MM2H scheme treats income from foreign businesses as foreign income, which is not taxed locally. Retirees can freely use their earnings to enhance their lifestyle. Flights from Indian cities like Chennai, Kochi, and Bengaluru connect conveniently to Sarawak via Kuala Lumpur, with one-way fares ranging between ₹8,000 and ₹12,000 depending on the season.

South China Sea view from Sarawak

Comparison with Other Retirement Destinations

Sarawak offers an exceptionally affordable route to retirement compared to popular international locations. For example:

• Dubai requires about ₹2.35 crore in property investments and proof of ₹3.5 lakh monthly income or equivalent cash savings just to qualify.

• Monthly living costs for a couple in Dubai can exceed ₹3 lakh.

• In Portugal and Thailand, residence permits often come with higher minimum financial requirements and property conditions.

Sarawak’s welcoming visa terms, low cost of living, and family-friendly culture make it one of the best country to retire for Indians who want a comfortable, peaceful retirement without the complexity or expense of other destinations.

Final Thoughts and Advice

If you are an Indian planning retirement in the next decade with a modest pension or savings, Sarawak in Malaysia should be high on your list to explore. The MM2H visa offers a practical, low-cost pathway to retire abroad peacefully, with your family by your side, and without giving up your Indian citizenship.

Take advantage of the chance to live in a place where your savings go much further than in Indian metros or costlier foreign locations. Sarawak is not a glamorous retirement hotspot, but it is safe, affordable, and easy to access for Indians looking for quality of life and peace of mind.