Cost of living in Penang: insights from a British family living on the island

Weighing up a move to Penang? Your first consideration is probably around affordability. Here we break down the cost of living in Penang to help you to get some perspective. Feature image above is Penang National Park.

Uprooting your home life and moving to a new country is one of the biggest adventures any family can undertake. Mixed in with all the excitement though comes a sprinkling of realism, usually centring around employment, schooling, finances and the cost of living. If reading this blog has perhaps inspired you to contemplate a move to Penang, the first practical step is to understand how much things cost, especially compared to your life back home.

As some brief background, our family of four moved to Penang in April 2024 from the UK. We live in two-bedroom high-rise apartment and our two boys attend an international primary school. We work as bloggers and are resident here on the Malaysian De Rantau digital nomad visa.

On a side note, these comparisons are with the UK. We have lived in Australia and New Zealand but this was several years ago, pre-kids, so our comparisons for those places would be outdated and skewed by our then Dinky status.

For the following comparisons, we’re focusing on Penang Island. Ever popular with immigrants from the UK, USA, Europe and Australasia, prices tend to be higher here than on the mainland. In fact Penang is, after Kuala Lumpur, one of the most expensive regions to set up a new home in Malaysia.

Of course, if you’re still earning the same salary as you were back home, you’ll find your income stretches much further in Penang and that you’ll be comfortably in the highest-income bracket on the island. To put that into some more perspective, the average monthly salary in Malaysia is approximately £1100. For people from richer countries planning a move to Penang, the relative disparity in spending power is one of the main pull factors.

So with all that in mind, let’s take a look at the cost of living in Penang. At the time of writing, the exchange rate between Pound Sterling and Malaysian Ringgit is £1 = RM6.

Accommodation

Penang Island is bursting with high-rise condo-style apartments, with new complexes popping up all the time, including a vast land-reclamation project currently in progress at Pulau Andaman near Gurney Avenue. If you’re keen on apartment living, you’ll have plenty of choice.

The most popular areas for new arrivals to live include Tanjong Tokong, Tanjong Bungah, Gurney Drive and Batu Ferringhi. These locations are close to the sea, meaning glorious views are usually part of the package. Straits Quay and Quayside (both also built on reclaimed land) are popular due to their proximity to international schools and various bars and restaurants.

Apartments in these places start from around RM2500 (£420) per month for a basic apartment in a reasonable building. The prices start to climb quite rapidly once you include gyms, swimming pools, high-floors and sea views, up to around RM12000 (£2000) per month for 6000sqft of stylish living with uninterrupted sea views.

The setup fees are similar to the UK so you should factor in:

• a deposit of one month’s rent
• the first month upfront
• (usually) agent fees of one month
• stamping fees (a slightly complicated formula is used but it comes out as a one-off payment of approximately 10% of the monthly rent)

Low-rise housing is less common here and you tend to pay a premium for it. It’s less common for expats to stay in this type of accommodation, but it can be found if you would prefer not being in an apartment. You may get a small garden and driveway included in the price, which also ranges from RM3000 (£500) towards RM11000 (£1850) for the better areas.

The level of furnishing varies across rental accommodation in Penang, something to consider if you’re planning to bring your own furniture from back home. It’s usually more expensive to get a fully-furnished place, although check the definition of part/fully-furnished with your agent as it can mean different things to different people. Part-furnished might only include white goods, AC units, bathroom fittings, whereas fully-furnished might just include beds and wardrobes.

Home furnishings aren’t much cheaper than back in the UK, so essentials like mattresses, bed frames, dining table and chairs will need to be included in your setup costs in some cases.

Food and drink

Penang has a wide range of eating options and it’s one of the main drawcards for people moving to the island. The standard and variety of cuisine belongs in the very top division, with Penang frequently listed as a world food capital.

Eating out can be either very affordable or very expensive, depending where you choose to eat. If you enjoy local cuisine (e.g. Malay, Chinese and Indian), eating at a local food stand or hawkers market is a fraction of the price compared to the UK, with meals starting at RM5 (£0.90).

If you go up a notch and eat at a local restaurant, a fantastic feast will only set you back about RM30 (£5) per person. At the upper end, western-style restaurants at places like Straits Quay and Gurney Plaza are around RM70 (£11.50).

In relative terms, the most expensive item in Penang is alcohol. It’s slightly cheaper than the UK in bars and restaurants, typically RM25+ (£4+) for a pint of Tiger, Carlsberg or Guinness. A bottle of wine might be RM150 (£25), but check the quality as they’re not always stored in the optimum conditions. Do check out our thoroughly researched guide to the best bars in Penang.

Buying alcohol from a supermarket is more expensive than the UK, a 330ml can of Tiger is around RM8 (£1.35) and it’s harder to find beer on special offer. As this is a Muslim country, alcohol isn’t consumed in the same volume as the UK, where the supermarkets often use it as a loss-leader.

Eating at home can be very cheap, we often use Grab food delivery in the evenings rather than cooking ourselves. This is partly because we’re not great cooks by any stretch of the imagination, and the only dishes we do cook (pasta, mainly) is quite expensive here once you’ve bought all of the ingredients. In any case, we can get a Malay or Thai meal for four delivered for RM50 (£9), or if we fancy a pizza or Subway, it’s slightly cheaper than UK prices.

Grocery shopping is cheap(ish), especially if you’re a good cook who can turn their hand to local dishes. Staples like rice, eggs, noodles, fruit and vegetables are much cheaper than the UK. If you buy items like pasta, cheese, chocolate, then it’s basically the same price as the UK.

Activities

Malaysia operates a dual-pricing policy for most sights and attractions, so you’ll pay more than Malaysians, which means some Penang activities are sometimes more expensive than you’d expect.

Top-class attractions such as ESCAPE Penang can be rather pricey, about RM600 (£100) for a family of four.

If you’re visiting local attraction like a temple or small museum, entry is usually around RM15-30 (£2.50 – £5). It’s quite cheap but can add up if you’re planning to visit all of the attractions Penang has to offer. The fancier museums, like the Upside Down Museum, are still less than you’d pay in the UK (RM30-40 or £6 – £7).

There are plenty of beach resorts in Batu Ferringhi and some offer lifestyle passes for the year which give you access to the pool, gym and health club. We joined the ParkRoyal in Batu Ferringhi for a year, which cost RM1700 (£280) for our family of four. This also gives 20% off your food bill and access to a fantastic gym and pool.

The cinema is cheap, about RM24 (£4) with the option to upgrade to the special 4D for a few extra ringgits. We often pay a visit to the MST Golf simulator which is RM70 (£11.50) for an hour. For comparison, you’d typically pay around £20 (RM120) for the same golf experience in the UK.

Schooling

The international schools in Penang are excellent and are one of the main reasons why we moved to Penang. There are around half a dozen international schools on the island that mostly follow the British curriculum with English-speaking teachers commonly from the UK or Australia.

The fees are significantly lower than private schools in the UK; the yearly fees are in the range of RM25000 to RM32000 (£4200 to £5400) for primary school, more for secondary. Some extra curricular activities are included, others such as instrumental lesson or specialist sports are extra.

The standard of teaching is outstanding and our boys have made a very smooth transition to school life in Penang.

Clothes

Similar to the food prices, if you’re buying from the same shops as the locals then items like t-shirts, skirts, shorts, etc are very cheap, perhaps RM20 (£3) for a good quality t-shirt. With the year-round warm climate, you don’t need as many clothes either, especially not the expensive winter coats, scarves and hats you buy in the UK. Most days are spent in shorts and t-shirts, with skirts or light trousers in the evening.

Decathlon is excellent for outdoor items and they’re cheaper than the UK although branded items like Asics running trainers are the same price as the UK.

The UK high-street is represented in Penang with shops like M&S and H&M in the larger malls. These are handy if you need something in a UK fit and size (like a swimsuit) and they’re priced exactly the same as in the UK.

Some items like black school shoes and good quality goalkeeper gloves can be hard to find, so they’ll be expensive if you forget to bring them from home.

Travel

Getting around Penang Island costs much less than a comparable ride in the UK. A twenty minute Grab ride will cost about RM15 (£2.50) and the local buses start at RM1.40 (£0.25) for a 7km ride.

It’s also much cheaper to fill up your car in Penang than the UK, a litre of fuel costs around RM3.50 (£0.59).

Further afield, Penang is well connected to Southeast Asia, with Bangkok, KL and Singapore all a short flight away. You can reach these destinations for around RM300 (£50) so regional travel and holidays are affordable. Flying longer distance is still quite expensive though, especially if you’re intending to visit Europe, Australasia or Japan in the high season.

Healthcare

If you’re coming to Malaysia on a visa like the De Rantau, it’s compulsory to have your own medical cover via long-term travel insurance. You’d need to shop around for the best deal but, as a guide, we took out a two-year policy for RM7200 (£1200). This can be a large (and unexpected) extra cost to factor into your move to Penang.

Medicines prices are cheaper than the UK for the basic items.

Internet

The fibre broadband is Penang is excellent speed and quality, costing around RM100 (£16) per month. For mobile internet data, there are five or six main suppliers with the best deals offering 40GB of 5G data for RM25 (£4) per month.

Summary table for cost of living in Penang

Please note that this is a rough guide. Accommodation costs especially can vary widely.

Final thoughts on cost of living in Penang

For such a beautiful tropical island, the cost of living in Penang is surprisingly low, especially when compared to other popular ‘expat’ locations like Dubai or Singapore. If you’re coming directly from the UK (and especially if you’re retaining your UK salary), you’ll no doubt find life here affordable and amazing.

Also remember that some of the items we’ve compared with the UK are incomparable; for all of its positives, the UK can’t offer year-round beach resorts or apartments overlooking crystal blue seas. In some ways, moving to Penang is getting you things money can’t buy.

There’s quite a range of budgets on offer for new arrivals. If you’re the type of person who enjoys eating out most nights, you’ll have a brilliant time but your budget will slip away quicker than if you self-cater. Similarly, there are cheaper apartment buildings a few kilometres inland, often half the price of those overlooking the Strait of Malacca.

Either way, it’s good to know in advance how much things cost in Penang and how they compare to the UK. Hopefully this guide has given you an idea of what to expect and where your budget might be spent. We’re so pleased we made the move and, even though we’re watching the budget, our experiences so far have been quite priceless.