Is 7000 Malaysian Ringgit Enough for a Family with 1 Kid to Live on in Malaysia?

Whether 7000 Malaysian Ringgit (MYR) per month is enough for a family with one child to live on in Malaysia depends on various factors such as location, lifestyle, and specific needs. In this article, we will break down the cost considerations to help you understand if this amount is sufficient to cover essential expenses.

Cost Considerations

Housing

Monthly expenses for housing in Malaysia can significantly vary depending on the location.

In major cities like Kuala Lumpur, a decent apartment in a good area can cost between 1500 to 3000 MYR per month. In smaller towns, it may be lower. For example, if you're in places like Ipoh, the cost might be around 1000 to 2000 MYR.

Utilities

Utilities like electricity, water, and internet can range from 300 to 600 MYR per month, depending on usage.

Food

The cost of groceries for a family of three can vary depending on dietary preferences and whether you eat out frequently. In Malaysia, these costs can range from 800 to 1500 MYR per month.

Transportation

Transport costs vary based on whether you own a car or use public transportation.

If you own a car, consider fuel, maintenance, and insurance, which can total around 500 to 1000 MYR per month. If you use public transportation, the cost is typically cheaper, around 200 to 500 MYR per month.

Childcare and Education

For preschool or daycare fees, costs can range from 500 to 1500 MYR per month.

International schools may be more expensive, but there are also many local options available.

Healthcare

Malaysia has both public and private healthcare options. Basic health insurance may cost around 200 to 500 MYR per month.

Miscellaneous

Entertainment, clothing, and other miscellaneous expenses might add another 500 to 1000 MYR per month.

Summary of Total Estimated Monthly Costs

Low-end: ~4300 MYR (more in rural areas with minimal expenses)

High-end: ~9600 MYR (in urban areas, for a more comfortable lifestyle)

Conclusion

With a monthly income of 7000 MYR, a family of three could live modestly in Malaysia, especially in less expensive areas. However, in urban centers like Kuala Lumpur or Penang, it might be challenging to cover all expenses comfortably without making sacrifices in certain areas. Budgeting and prioritizing needs will be essential.

Geographical Context

It depends on where you live. If you're located in a bustling city like Kuala Lumpur or Penang, it would be more difficult to manage on 7000 MYR. However, if you are in a city like Ipoh, you could manage with more ease.

Assuming your credit is good and you have a down payment from previous savings or access to the Employees' Provident Fund (EPF) draw down, you might be able to afford a modest house. Alternatively, you could save and rent an apartment close to work, then buy a place when you have enough savings. Housing prices in less expensive areas like Ipoh may be a quarter of what they are in KL or Penang.

There is a lot of free fun to be had in cities like Ipoh, with activities such as nature walks, fishing, and other outdoor activities. Food is generally cheaper than in Kuala Lumpur but tastes just as good as in Penang. Buying a small second-hand car may be economical, especially an economical hatchback that can sit up to 4 or 6 people depending on your needs.

Eating at food courts during the day can help you save on meals. If you cook one meal a night and a couple of times a week, you can save enough to plan for your kid's future and put aside some money for emergencies.

Medical care in Malaysia is generally cheap. Citizens typically have to pay a minimum at the general hospital, which might be cheaper than a few cans of beer. If you have insurance, it would certainly be more advisable.

For working from home via the internet, the WiFi services are good, and smartphone services are adequate.

Education is generally okay, but if you want to send your child to an international school, it can be costly. However, there are many local schools that provide a good standard of education.

If you are Asian or Asian-looking, you will generally do okay. Racism is present but considered minor. Petty crimes do occur but life is generally safe, with strict gun control making shootout incidents rare, usually limited to gangsters and the police.

The best approach is to work in Singapore and stay in Gelang Patah or the outskirts of Johor Baru, where you can benefit from lower living costs while still enjoying proximity to work.