KUALA LUMPUR - Malaysia’s capital city, Kuala Lumpur, continues to attract high-value expatriates, ranking eighth among 49 major global cities in the Expat City Ranking 2023.
In a Parliament session on Tuesday, Home Minister Datuk Seri Saifuddin Nasution Ismail said that expatriates were drawn to the city due to its relatively low cost of living, political stability and the economic opportunities Malaysia offers.
"Expatriates see the potential for economic growth. Additionally, they value the skills of local colleagues. Communication is also easy due to language proficiency.
"These factors contributed to Malaysia ranking eighth last year,” he said in response to Paya Besar Member of Parliament (MP) Datuk Mohd Shahar Abdullah, who sought details on expatriate demographics and their economic contributions from 2019 to 2023.
As of Oct 31, Malaysia is home to 120,183 expatriates, with China leading the numbers at 27,460, followed by India (23,131), the Philippines (9,302), Japan (8,739) and Indonesia (8,333).
These five countries collectively account for 64 per cent of Malaysia’s expatriate population.
The remaining 36 per cent comprises individuals from other nations, with expatriates employed in diverse sectors, including services and information technology.
Expatriates in Malaysia were categorised into three salary tiers based on the Immigration Department's pass criteria: those earning RM10,000 and above, those with salaries ranging from RM5,000 to RM9,999 and individuals within the RM3,000 to RM4,999 bracket.
Saifuddin highlighted their economic impact, including contributions to taxes, domestic spending and investments.
"The Malaysia Productivity Corporation (MPC) estimates expatriates contribute RM75 billion annually, accounting for 4.8 per cent of the nation’s Gross Domestic Product (GDP)," he said.
Additionally, the Inland Revenue Board collects RM100 million in income tax annually from expatriates.
Their presence also bolsters various sectors, as expatriates and their families engage in local spending, school enrolments and tourism activities, further driving Malaysia’s economic growth.