Malaysia secured the seventh spot, while Thailand ranked 10th in the 2025 Annual Global Retirement Index, which evaluates factors such as housing, visas and benefits, cost of living, healthcare, climate, development, governance, and affinity rating.

According to the report, Malaysia’s affordability is a major draw, allowing retirees to enjoy a high standard of living without overspending.

In Kuala Lumpur, a one-bedroom apartment typically rents for US$300–500 per month, with utilities costing around $40–60. Dining out is also inexpensive, with local meals available for as little as $2–3.

Beyond Kuala Lumpur, other cities like Penang and Malacca offer excellent value, featuring slightly lower rental prices and a slower, more relaxed pace of life that appeals to retirees.

Malaysia enjoys a tropical climate, with year-round warmth and temperatures ranging from 25 to 35 degrees Celsius.

For long-term stays, the country offers several visa options tailored for retirees and digital nomads.

“Thailand is the heartbeat of sparkling Southeast Asia, seamlessly blending ancient temples with colossal skyscrapers, high-speed trains with longtail boats, and Michelin-starred restaurants with food carts,” the report stated.

In Bangkok, retirees can rent a studio apartment for around $600 per month, spend approximately $15 a day on dining, and get around the city for less than $100 per month.

Chiang Mai, known for its iconic Buddhist temples and tranquil atmosphere, is also a popular choice for retirees. A spacious one-bedroom apartment there costs under $500 per month, while dining at popular food stalls can be as low as $12 for two people.

Thailand also has one of the world’s most retiree-friendly visa policies, offering stays of up to 10 years for eligible foreigners.

Panama was ranked the best retirement destination, followed by Portugal and Costa Rica. Other countries on the list included France, Mexico, Greece, and Italy.