These 2 Southeast Asian Countries Hope to Woo Expats With New Visas

Malaysia and Indonesia Try to Replicate Europe’s Success.

It’s said that imitation is the sincerest form of flattery. In this respect, Southeast Asian nations are poised to pay homage to European residency visa programs. 

Both Malaysia and Indonesia are in the process of creating new long-term residency visas. The question is whether a market exists for such opportunities based on the rumored terms. 

As we’ve explained several times this year, the European Golden Visa scene is gradually shifting away from offering long-term residency based on investing a certain sum, such as by buying residential property. In its place are visas intended to attract digital nomads, retirees, and people of independent means who want to live in-country for extended periods.

However, Malaysia and Indonesia are plowing ahead with plans to offer five- to-10-year visas in exchange for substantial financial, residential, or business investments… precisely what Europe is moving away from. 

The two countries are focusing on attracting distinct types of foreign residents.

Malaysia is keen to become a technological powerhouse. The capital, Kuala Lumpur, is already home to a thriving technology sector. But its strength is in manufacturing rather than software and services.

To change that, the country is reportedly considering offering a long-term residency visa to entrepreneurs willing to start technology service companies there. 

Indonesia has long been a destination for expats, especially its famed island of Bali. Up to now, there hasn’t been a specific long-term visa for digital nomads or investors, but many expats have managed to finagle the system into a long-term presence anyway. The most popular route is through the “social visa,” which gives you 180 days in the country, and can be renewed repeatedly. 

Since the pandemic, digital nomads have flooded into the country. Under the leadership of popular President Joko Widodo, Indonesia is now working on both digital nomad and investment Golden Visas to accommodate them on a more permanent basis. 

The terms are still under discussion, but a $350,000 investment in government bonds has been bandied about as a possible way to qualify. A residential variant would require purchase of a home worth at least $220,000, along with bank savings and a minimum monthly income. 

These new visas are in addition to entrepreneurial visas, which, like Malaysia’s, are aimed at tech entrepreneurs. Indonesia’s technology sector is still significantly behind the rest of East and Southeast Asia, but the government aims to change that. 

Both countries have ample coastal areas to attract potential expats, whether digital nomads or independent means/retiree types. But there are significant questions about the feasibility of the proposals for the island of Bali. 

Bali has a similar vibe to Majorca and Minorca (both part of Spain) in the Mediterranean. It attracts younger backpacker types who spend little and drink a lot. At certain times of the year the island is overrun by them, leading to significant pushback from local residents and businesspeople. 

The Indonesian government counters that the new visas are intended to attract a different type of expat: those with significant means and a long-term commitment to the locality. If it succeeds, that could lead to a major change in the Balian economy, one that would probably win the support of the locals. 

On the demand side of the equation, much depends on whether Westerners are willing to move to Southeast Asia. Chinese expats will probably constitute the majority of applicants, but the Chinese government is increasingly reluctant to allow its citizens to take their money abroad.

Early marketing of Malaysia and Indonesia’s potential visa offerings clearly suggests a focus on North Americans and Europeans. 

Although both countries are nominally Islamic, they are socially liberal. English is widely spoken in Malaysia, less so in Indonesia, but still enough to get around daily. Nevertheless, both cultures are vastly different to Europe, and that may be an obstacle for some retirees.

Then, there’s the huge time difference between the business and technology centers of North America and Europe and that of Southeast Asia, which may be a limiting factor for some digital nomads. 

I’ll be keeping an eye on developments in Southeast Asia over the next few months, and as soon as the terms for these new programs are finalized, you’ll be the first to know.