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Cost of Living: Penang, Malaysia

Published on 21 July 2011 by Tracy Burns | 44 Comments |

Penang is an island on the west coast of Malaysia, two hours from the Thailand border. Once an important shipping port in the spice trade between east and west, the Penang of today is a fascinating blend of old and new. Luxury condominiums the size of small palaces line the foreshores, while just a few streets away in the capital Georgetown historic Chinese shop houses sit jumbled together on narrow streets.

With its diverse mix of cultures, eclectic cuisine and beach-city status, Penang has a lot to recommend it as a great location for families. Penang offers great infrastructure, good education, and a range of entertainment and lifestyle options such as sporting teams, hiking, cinemas, family friendly beach-side bars. The cost of living is low while the standard of living is extremely high.

Penang isn't quite a tropical paradise. Here's the nicest beach ... which is several kilometers walk from the nearest town. 

Most of the island is heavily populated, although there's lots of jungle covered mountains, pockets of nature and undeveloped coastline. It has peak hour problems, although no where near as bad as most cities. The ocean isn't exactly pristine and rapid development is spoiling some areas, but there are still a lot of small friendly suburbs with green places.

We came here for a week last year and ended up staying 5 months. At the end of that five months we decided to spend the next few years in Penang, living here half the year and travelling the rest. While there are cheaper places to live in South East Asia, for us it offered everything we wanted: a high standard of living at a low price, easy access to facilities like healthcare and entertainment, good schooling and educational facilities (great bookstores, interesting outtings), a diverse culture to learn about, a nice balance of nature/beaches and city lifestyle ... and possibly most importantly for us - lots of other families hang out with. 

In case you're considering moving to Penang, here's a break down of our costs. These costs are based on a family of 4, with two young children.

FYI: Prices are quoted in ringgits, which is roughly RM3 = 1USD or 1AUD or RM5=1 UK pound

Just a note: since we're holidaying here in Penang, we're not working. So I'm not providing details on the cost of work visas, shipping, taxation rates etc. This is just a daily living guide.

Housing & Utilities

The cost of rent in Penang is all about location, location, location! The closer you are to Georgetown or the bridge to the mainland, the more expensive the rental prices.

Penang Hill View

Expats tend to be scattered all over the island. Many live out near the beaches closer to the international schools. Others live in Georgetown, near the airport or the bridge to the mainland, for work reasons. There's no bad place to live, it just depends on the needs of your family. 

The best way to find a place to stay is to come to Penang and stay in a guesthouse or hotel while you look. Generally, places advertised online will be more expensive. A week is more than sufficient time to find an apartment, but allow a month if you are looking for a house. Try to set some time aside and search for Penang hotels online. This might not seem like a huge issue, especially if this is an endeavor you’ve been saving for, but you’ll be pleasantly surprised with how much money you can save by going this route. All it takes is a few clicks on a high-profile website like Expedia, and you’ll be able to find a great room for a low price. You can usually book a number of last minute hotels as well, so don’t feel as though it’s too late to check and see what’s available.

Penang is a relatively safe place to live, but break-ins are not unheard of. Many people choose to live in apartment complexes for this reason, but houses are perfectly safe provided you have good locks, grills and a decent fence.

It's worth noting in Malaysia, unfurnished can mean an empty shell - no kitchens, lights or hot water. Semi-furnished usually refers to the place having a kitchen, hot water, lighting and possibly AC. Fully furnished means everything you'll need, except perhaps an oven and installed hot water (although ask nicely and your landlord will probably provide these things if you are staying more than a few months).

Furniture and applicances are a little cheaper than back home, while other household items like plates, cutlery, curtains, linen are at least 30% cheaper than you'd pay back home if you know where to shop. 

Apartment

If you're just coming to Penang for a few months, a furnished apartment is your best choice. It is hard to find a furnished house on a short-term lease.

The cost of renting an apartment varies depending on location, size, age, furnished or unfurnished, quality of furnishing, length of rental agreement and the facilities the complex has.

For a furnished apartment in a nice complex with a pool expect to pay RM1800-5000 per month, depending on location and the length of your lease.

For an unfurnished apartment on a 12month+ lease with a pool, the price will be between RM800-3000. You can rent a lot cheaper than this but you will be in an older apartment block without facilities or security, and the apartments will often be quite small.

We rented for 4 months in Miami Green, a really nice apartment complex near the beach with several pools, squash courts, gym and security.

We paid:

  • 3 bedroom Apartment: RM2200/month for a 4-6 month lease. RM2500-2800 per month on a shorter lease.
  • Electricity: RM200/month (use of AC overnight and for a few hours during hottest part of day)
  • Gas (for stove): RM5/month
  • Water: RM8/month
  • Cable television: RM49/month for basic package plus children’s channels and western news channels.
  • Cleaning: House cleaner 2x weekly RM300/month
  • Internet: RM18/week for a USB modem with sim card

 

The swimming pool and playground

House

You can rent large, modern houses for RM1200-3000 per month unfurnished or RM3000-5000 per month furnished.

It's almost impossible to rent a house for anything less than a 12 month lease.

Houses within gated communities are also an option, although they're definitely at the higher end of the rental spectrum.

We're currently renting an unfurnished 5-bedroom house with a yard on a two year lease 20km from Georgetown in a small tourist suburb. Our house is 7mins walk to the beach in a quiet street.

We pay:

  • Rent: RM1200/month
  • Electricty: RM200/month
  • Gas (for oven and stove):RM5/month
  • Water: RM8/month
  • Cable television: RM50 for basic or RM125/month for full package with HD and recording
  • House Cleaner: RM12 per hour, or 5x weekly RM500/month
  • Internet: RM100 per month for ADSL 

Gurney Hill, Penang

Transport

Buses in Penang are modern, comfortable and cheap. They have AC and some even have free WIFI. The bus network is relatively comprehensive and some people just get around using this.

Having a car definitely makes life easier though, particularly for families. Cars are expensive to buy in Malaysia, but relatively cheap to rent on a monthly basis.

To buy a car, looks for cars over 12 years old. Cars older than 12 years can't be financed in Malaysia so they drop dramatically in price. Also, the engine capacity determines the yearly registration. A 1.6L car costs RM90 per year to register, a 2L around RM400. We were quoted RM9000 for a 4.6L 4WD ... a huge difference.

For a reliable car with AC over 13 years old, expect to pay RM15000-30000.  

Motorbikes are another option, although traffic is faster here than in other Asian cities and the roads are winding. People do it but there are a lot of motorbike accidents here so think carefully.

Car rental

  • 5-year-old sedan: RM1200/month with additional excess, free services and repairs
  • Newer car: RM2000/month
  • Petrol: RM70-90/week (RM1.90 per litre)

Bus tickets

  • Less than 14km: RM2/adult
  • 14km-21km: RM2.70/adult
  • Monthly ticket (unlimited): RM75/adult, RM35/student/concession
  • Children under 6 are free, children over 6 are half price.
  • www.rapidpg.com.my

Food & Groceries

If you want to live cheaply in Penang, shop where the locals do. Find out where your nearest wet markets are, discover local butchers and importers for meat, cheese, yogurts and for those things you just can't find in local stores find out where the nearest Tescos is.

Assuming you are cooking simple meals or local dishes, not eating expensive steaks every day and eating out 2-3 nights a week, then groceries for a family should be no more than RM300 per week.

Loaf of bread: RM3
1L of milk: RM7
Apple: RM1.50 for large imported apple
4 bananas: RM2
Navel Orange: RM1.50 per piece
Lettuce: RM3

4 carrots: RM2
1KG chicken breast: RM9
1KG beef mince: RM16
1KG nice steak: RM30

Nescafe instant coffee (small): RM10

250g Honey/Nutella/Jam(good quality): RM10

250 Jam (cheap): RM3

2L bottled water: RM2
Can of beer: RM6
Can of coke: RM1.50
500g pasta: RM5
1kg rice: RM2

Toothpaste: RM6
Shampoo: RM5-20 depending on brand
Diapers: RM35 for pack of 30

Eating Out

Eating out in Penang is inexpensive. If you are happy to eat where the locals do you'll only pay a few ringget more than you would cooking at home.

Hawker Markets and small local restaurants will offer the cheapest food, whereas the tourist restaurants in Batu Ferringhi and Georgetown will blow your budget (even if they are quite cheap in comparison to what you would pay back home in the west in a good restaurant).

You'd be forgiven for thinking that eating out is the favourite passtime of locals. Most eat out at least once a day, including us. We will usually eat breakfast out a few times a week and dinner out at least 3 times per week. 

At a Hawker Market or local eatery, for a family (of 4) expect to pay:
Breakfast with tea and water: RM10-15
Dinner or lunch with local iced drink: RM15-25
Dinner with beer and juices: RM45-60

At a local restaurant
Dinner with just water or iced local drinks: RM30-40
Dinner with beer and fresh juices: RM55-80

Home delivered Pizza
RM22

Little India - Queen & Market

Daycare & Schooling

Primary and Secondary Schooling

There are a lot of great International Schools in Penang. St Christopher's Elementary School is the cheapest and has a fantastic reputation. Dalat, Tenby and Uplands are more expensive but very good schools and your best option with high-school aged children.

Enrolment in a local school is an option, but some schools won't accept students if your only here short term on a tourist visa and the quality of schools varies greatly. Formal schooling in Penang doesn't start until 7 years of age. Like the rest of Asia, Malaysia is very focused on education. Discipline is strict and a lot of homework is given. In and around Georgetown there are some great locals schools though - you just need to do your research. 

For an international school, expect to pay RM12000-18000 per year including fees for primary school, while secondary school ranges from RM18000-RM40000 including fees. 

Childcare and Daycare

Daycare in Penang is commonly available for children aged 2.5yrs-7yrs. For younger children, it's harder to find childcare outside of a local nanny.

Daycares in Malaysia generally follow a very Asian education model so it can be hard to find play-based learning for younger children if this is what you are used to. Most have children over 4 years doing mini-school work. Play-based centres do exist but you may have to pay more and drive further! Taska Lin and Cherie Hearts both have a great reputation for a more play based approach, however their prices are double the costs quoted below.

Daycares commonly offer three options – 5 half days per week, 5 full days per week or a mix of both (for example three half days and two full days).

Cost:

RM180-350 / month for 5 half days, including lunch and morning tea.
RM250-450 / month for 5 full days, including morning tea, lunch and afternoon tea.
RM200 / year once off fee for books, craft materials, uniform.

After School Tuition and Sports

After school tuition in anything from reading and maths to music and karate is widely available in Penang. Almost every suburb will have a couple of tuition centres, and at least one organisation running some type of weekend sport.

Expect to pay anything from RM20-60 per month for one hour of tuition per week, and a similar price for children's sport.

Homeschooling

Homeschooling is legal in Malaysia, although if your a resident you may be required to register with the government. The bookstores here have an amazing range of children's books, from textbooks to leveled readers and novels, making it a very easy country to homeschool in. And of course with all the temples, cultural diversity, national parks and local lifestyles to explore it's not hard to find great homeschooling excursions! 

The Dalat International School has a distance education and homeschooling department. For RM600 per year a family can access the schools library, homeschooling resources and afterschool sporting activities. Assistance with curriculum and testing is also available for an additional fee.

Kek Lok Si

Other

Cinema: RM40 (two adults, two kids, two drinks, two popcorns)

Doctor's consult: RM20 at a local hospital, RM50 at a private clinic

Emergency consult with xray: RM70

Parking: RM1 per three hours on weekdays, RM3 per three hours on weekends.

Gurney Plaza

Cost of living series

We're aiming to build up a cost of living series focusing on great places around the world for families to stop for a while ... be it a month or two for a rest during your travels or living long term. If there's somewhere you've stopped that you've loved and you can give us a breakdown of the costs, we'd love to add it to the series.


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Comments

  • Hi Guys,

    This post has been very useful to us. We are currently in Singapore but looking for a place in Malaysia to settle for a couple of months whilst building up our travel businesses. No family in tow but still great to see Penang is affordable :)

    Be great to meet up once we get there.

    Deborah

    Posted by Pure Travel Style, 17/10/2011 5:39pm (5 years ago)

  • Hi Deborah, Penang is a lovely spot to do just that. It's definitely more affordable than Singapore! We'd be very happy to meet up with you when we arrive, although we're off to Europe for three months over Christmas so perhaps our paths won't cross.

    Posted by Tracy Burns, 20/10/2011 11:46am (5 years ago)

  • Hi your website is very use full, thank you. I will be moving to penang on the 2nd DEC 2011 with my wife and 2 year old son, I will be looking for a condo fully furnished if you know or any please 2000Myr or below not more in a good place for family not to far away from the beach with lift access as I have a bad spinal injury. We intend to stay there long term also is it easy to open a Bank account or does it depend on your Visa and if you own property there? I hope you can help thank you.

    Kinds Regards Paul and Family.

    Posted by PAUL THOMPSON, 21/11/2011 3:14am (5 years ago)

  • Hello there,

    Your blog is so informative, firstly well done for the fantastic sharing of info! We will have the possibility to move to Penang in 6 months time. My daughter is a French native, following my husband's mother tongue; being in the French school in kl for some years now. She's in grade 3 primary. I have searched online and spoken to alliance francaise in Penang in dismay as they can't provide me any info towards possibility for my daughter to continue her French lessons ( as they provide lessons as a foreign language)

    I'm writing to you to know if you'd personally know any French families in Penang that could help me out in seek for a French private tutor or who are homeschooling their kids in French? I failed to search of any French families that are residing in Penang.

    Would be great to know if you'd have a clue on this matter ?

    Thank you in advance.

    Olivia.

    Posted by Olivia, 21/11/2011 4:38pm (5 years ago)

  • Hi Paul,

    There are several places in Penang that you could find an apartment for under 2000RM with a swimming pool etc. Head out to Batu Ferringhi, there are a couple of places. Eden Seaview or Miami Green. Miami Green would certainly be my preference (bigger apartments, better maintenance and facilities). But to find a furnished apartment in Miami Green for 2000RM/month you will need to spend some time looking. I would be pretty sure you could get something, you may just need to allow yourself a couple of weeks to find it. (It will also depend on how long you are wanting to rent for.)

    Both of those apartments can feel a little isolated if you don't have a car and walking is difficult so you will need to consider that in your prices. You can rent a car month from anywhere between 1000-1800RM/month. Cars to buy are quite expensive but might be a better option than renting long term.

    I don't really know what is required to open a bank account at all banks in Malaysia. We have opened one, but we had to show a rental agreement and our passports.

    I hope that helps.
    Colin

    Posted by Colin Burns, 21/11/2011 8:37pm (5 years ago)

  • Hi Olivia

    Nice to meet you. Do you live in KL? We are in KL this week if you would like to meet to talk about Penang.

    Unfortunately I do not know any French families in Penang. I know many families from Europe but none from France. Perhaps you could try contacting the International Womens Association or one of the International schools - perhaps they would know some French families. You could also try contacting Sloane, a very lovely local lady who homeschool's her daughter in Penang and is trying to gather homeschoolers together. She runs http://21plc.wordpress.com/ - perhaps she would know a French homeschooling family.

    I hope this helps.

    Cheers
    Tracy

    Posted by Tracy Burns, 22/11/2011 11:49am (5 years ago)

  • Hi Colin Thank you for your advice, it was very helpful. I am intending to stay there permanent depending on visa's etc. I will be there from the 2 nd Dec. Hope to meet you sometime. Your recommendation was good as that is one place I have looked at on the net and and would like to have a look at. Hope you have a great week. Thank you Paul and Family.

    Posted by Paul Thompson, 24/11/2011 11:11pm (5 years ago)

  • Hi I am in Penang now looking for a condo for myself wife and 2 and a half year old son need to be near the public transport route at the minute need lift around 1800 myr a month can you help please. Thank you. email newcastlepablo@fsmail.net

    Posted by Paul Thompson, 11/12/2011 11:28pm (4 years ago)

  • Hi I am in penang now looking for long term rental accommodation do you know of anything going at the minute? from Dec 22 nd on wards for 1 year? if so can you email me on newcastlepablo@fsmail.net please.

    Posted by Paul Thompson, 11/12/2011 11:59pm (4 years ago)

  • Interested in 1 bedroom apt with ac and full kitchen, living room, and outdoor deck or lanai close to town and beach. What is available and what would be the costs to furnish with the basics?

    Posted by Rene Eife, 29/12/2011 5:59am (4 years ago)

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