Situated a short distance away, many Malaysians move to and work in Singapore due to the favourable currency exchange, higher salary and better career opportunities. After living and working in Singapore for some time, some may find that they want to continue staying for the long term and apply to be a Singapore permanent resident (PR).
Following two years of being a PR, they will be eligible to apply for a Singapore citizenship and enjoy privileges and government benefits equivalent to those given to natural-born citizens.
This includes having the right to vote in national elections and stand for election to the Federal Parliament. Singapore citizens can also travel abroad without a valid Re-Entry Permit (REP), which needs to be renewed every five years with the Immigration and Checkpoints Authority (ICA).
However, for Malaysians who are thinking of applying for a Singapore citizenship, this means that you would have to renounce your citizenship in Malaysia, which does not recognise dual nationalities.
As a Singapore PR, you still get to retain your citizenship in Malaysia and enjoy benefits that come with it in Malaysia. With Singapore dollar being S$1 to RM3.30 against the Malaysian ringgit, many Malaysians working in Singapore enjoy currency gains and lead a comfortable life. If they apply to become a Singapore citizen, they will be more established in Singapore and have more expenses here.
Here are three financial considerations to think about before applying for a Singapore citizenship.
#1 Housing
When it comes to buying a home, priority will typically be given to local citizens over others. As a non-citizen, you will still be able to buy a home, but there may be restrictions imposed.
With a Malaysian citizenship, one will be able to access a wider variety of properties in Malaysia with no pricing limitation.
On the other hand, foreigners can only buy selected properties in Malaysia that meet the minimum price threshold set in different states. The following table shows the minimum price threshold for property purchase by foreigners in different states in Malaysia.
In popular locations such as Penang island, foreigners are able to purchase landed properties with a value of at least RM3 mil. Whereas in the state of Selangor, foreigners may only purchase strata properties priced between RM1 mil to RM2 mil, depending on the specific location.
If you’re a Malaysian citizen, you can buy homes with prices below the minimum threshold set for foreigners. According to data from the National Property Information Centre (NAPIC) in 2023, the average price of a home in Kuala Lumpur is RM778,485.
| State | Minimum Threshold |
| Kuala Lumpur | RM1 mil |
| Johor | RM1 mil |
| Selangor | RM1 mil (Hulu Selangor and Sabak Bernam); RM2 mil (Petaling, Gombak, Hulu Langat, Sepang, Klang, Kuala Selangor, Kuala Langat). |
| Penang | RM500,000 (strata properties on mainland); RM1 mil (strata properties on island); RM1 mil (landed properties on mainland); RM3 mil (landed properties on island). |
Additionally, buying certain types of homes can be more affordable in Malaysia. The average price of terrace houses sold in Malaysian states such as Kuala Lumpur and Johor in 2023 are RM904,555 and RM399,448. On the other hand, the cheapest landed properties in Singapore have an average price of around S$1.3 mil, according to transactions in 2023.
As a Singapore PR, if you’re thinking about converting to Singapore citizenship, you may want to consider the affordability of homes in Malaysia compared to in Singapore and the privileges accorded to Malaysian homebuyers, especially if you have plans retiring in Malaysia.
#2 Healthcare
Holding the Malaysian citizenship, you are eligible to receive affordable healthcare treatments at public hospitals in Malaysia.
For example, general outpatient treatments at public hospitals and polyclinics in Malaysia cost only RM1 per visit. Ward admission for double-bed rooms and single-bed rooms are RM90 and RM120. Meanwhile, specialist consultation is free for first visit and costs RM5 for following visits.
For Malaysian citizens aged 60 years and above, medical registration fees of RM1 and RM5 for outpatient and specialist consultations are waived.
Malaysians can also opt for healthcare treatments at private hospitals for a higher fee. For example, the room rates at Pantai Hospital are RM150 for a double-bed room and around RM250 to RM725 for a single room.
In Singapore, healthcare can be more costly. For example, specialist consultation fees at the Singapore General Hospital for citizens range from S$30.50 to S$71.17.
For private healthcare, the fees will be costlier as they are not subsidised. For example, Mount Elizabeth in Singapore charges S$309 for a stay in a four-bedded room and S$931 in a single room.
#3 Retirement
According to Malaysia’s Employee Provident Fund (EPF)’s expenditure guide, the minimum estimated costs of living for a retired couple range from RM2,760 to RM3,390 per month, depending on which state you live in.
Kedah is the cheapest state to retire in Malaysia, requiring an estimated RM2,760 per month for expenses. On the other hand, it is the most expensive to retire in Kuala Lumpur, with a monthly expense of RM3,390.
In another article, we discover that the average expenses of retirees in Singapore vary depending on the type of home they stay in. On average, retirees living in HDB flats spent about $867 a month per person. Retirees living in condominiums & others spent $2,680 monthly per person.
As for retirement savings, workers rely on the Employee Provident Fund (EPF) to save for their retirement. The EPF’s self-contribution option is available to Malaysian citizens and permanent residents below 75 years of age. You can make self-contributions in any amount between RM1 and RM100,000 a year.
Once you turn 55 years old, you will be able to access your entire EPF savings. You can withdraw your entire savings or make partial withdrawals.
If you want to pace your withdrawals, you can opt for monthly payments. Members can apply for monthly withdrawals of a minimum of RM100 for at least 12 months. The payments will be credited to your bank account on every 25th of the month.
Besides withdrawing your savings, you can also transfer your savings for investment with approved financial management institutions (FMIs). The minimum transfer amount is RM1,000.
On the other hand, the Central Provident Fund (CPF) is the social security system in Singapore, which assists to help its citizens save for retirement and has a scheme that provide contributors with lifelong monthly payouts in retirement.
The decision for a Singapore PR to convert to Singapore citizenship is a personal one and depends on a multitude of factors. Aside from financial factors, you may also have other considerations such as familial and cultural ties. If you have family back in Malaysia and foresee a higher chance of retiring in Malaysia, you may consider keeping your PR status in Singapore and citizenship in Malaysia.
For those who have integrated and enjoy the well-developed infrastructures and safe living conditions in Singapore, you may prefer to stay in Singapore as its citizen.
When it comes to financial factors such as living costs, certain expenses such as buying a car or house are significantly higher in Singapore compared to Malaysia. However, average income is higher in Singapore compared to in Malaysia. At the end of the day, the decision to apply for Singapore citizenship really boils down to your personal choice and what you prioritise the most.
Read more: Marrying A Malaysian Spouse: Should You Get A Malaysian PR (And What You Need To Get It)
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