Penang, Ipoh, and Johor Bahru

Malaysia is large enough that "moving to Malaysia" is not a plan. People retiring on a modest income usually end up comparing a few real places. These three come up first. Kuala Lumpur is the reference point, not the default.

Penang

George Town is the name people picture: shophouses, clan jetties, street art, and some of the country's best food. The heritage core is pleasant and no longer a bargain. Farther around the island, and in parts of the mainland such as Butterworth, housing is calmer and often cheaper. Private hospitals are a serious reason people pick the island. English, Malay, and Hokkien share the street. You can live without a car in the center. You will still want a way home when a tropical downpour starts at 4 p.m.

Ipoh

Ipoh is smaller, slower, and often the more affordable of the well-known choices. The old town has famous coffee shops, the limestone hills sit just outside, and the pace suits people who do not need a new mall every weekend. International flights usually mean a train or bus to Kuala Lumpur first. That is a fair trade if you want a small city and a lower rent. It is a poor trade if you expect a specialist doctor for everything within ten minutes.

Johor Bahru

Johor Bahru sits across the causeway from Singapore. Some people live here because family, work, or a familiar doctor is on the Singapore side, and because rent is lower than on that island. The city is big, hot, and organized around driving. It rewards a specific reason to be there. It is less convincing as a postcard retirement if you have never needed Singapore next door.

And the places this list leaves out

Kuala Lumpur has the most flights, the most specialists, and the easiest way to spend a luxury budget by accident. Choose a neighborhood on purpose. The Cameron Highlands are cooler because they are high, and they are small tourist towns, with rents that jump in season. Kuching and Kota Kinabalu are a different country in the ways that matter day to day: distance, food, rain, and sometimes a different long-stay program run by the state. If East Malaysia is the dream, read the rules for that state, not only the rules for Kuala Lumpur.