Western Retirees Emigrating to Southeast Asia

Jack Simon, who retired from his teaching career in Florida recently, settled down in Penang, the Philippines.

He thought Southeast Asian countries offer a far more reasonable and better life than Mexico or Chile. Relying entirely on his pension, he said that he can play golf and eat out in Penang with a mere $1,500 a month.

The Wall Street Journal said in an article yesterday that retirees from the U.S. and Europe like Simon are flocking to Southeast Asia for a “second life.” Thailand, the Philippines and Malaysia have been popular emigration destinations among the elderly in Asia, but American and European retirees are also increasingly moving there. American and European elderly preferred Latin America or southern Europe, which are relatively near their countries, as their home for post-retirement life. But they are paying increasing attention to Southeast Asia where immigration is relatively easy and living standards are quickly rising.

The number of foreigners living in Malaysia on a retirement visa soared to some 8,700 last year from some 50 in the late 1990s. The Philippines issued more than 1,300 retirement visas last year alone. American and European retiree immigrants to Southeast Asia, who were a rarity in the late 1990s, now account for 15 to 20 percent of the entire retiree immigrant influx.

The principal reason that such retirees like Southeast Asia is the low living costs. However, social services are also as important as economic reasons. They can communicate in English relatively easily there, and the region offers good foreign schools and fine medical and leisure facilities, the WSJ said.

Southeast Asian governments are also streamlining their immigration procedures to attract American and European retirees, who tend to be big spenders.

Last year, Malaysia established a “My Second Home” (MSH) program in its Tourism Ministry to cover immigration procedures. The Philippines cut in half the deposit it demands of retiree immigrants starting from this year, while Thailand scrapped its deposit requirement if immigrants have a fixed monthly income.

A spokesman to the MSH of Malaysia said, “Our end goal is to attract a huge middle-class retiree population from Asia, the U.S., Europe, and China.”

mickey@donga.com