Labuan, Malaysia

Labuan sits off the coast of Malaysian Borneo, a small island territory with a tropical equatorial climate that stays hot and humid all year. Heavy monsoon rains arrive from November through March, while May to September offers relatively drier conditions. The expat community here is small, and most newcomers settle in Labuan Town or Bandar Labuan, the two popular neighborhoods for foreigners.

Living costs in Labuan are modest. A single person's monthly expenses excluding rent come to $680, while a family of four spends about $2,400 per month on the same basis. Rents are reasonable: a one-bedroom in the city center runs $620 per month, and outside the center it is $480. A three-bedroom unit in the center costs $1,150, and outside the center it is $850. Utilities add $32 monthly, internet is $27, and a mobile phone plan is just $7. A meal at an inexpensive restaurant costs $6 per person, a three-course meal for two at a mid-range restaurant is $24, and a cappuccino is $4. The average monthly net salary for locals is $367, and the cost of living index stands at 49 out of 100 (New York City = 100).

Safety in Labuan is solid, with a safety index of 65 out of 100 and a crime index of 35 (lower is safer). Healthcare quality is rated as fair. The air quality index is 45, which is relatively low and indicates good air quality.

For those looking to stay long term, the Malaysia Premium Visa Program (PVIP) requires a minimum monthly income of $3,333 per month. Digital nomads can apply for the Malaysia DE Rantau Digital Nomad visa, which requires a minimum monthly income of $2,000. Getting to Labuan is straightforward by air or sea. This island suits budget-conscious expats, retirees, and digital nomads who appreciate low costs and a quiet pace, though English proficiency is limited and the expat community remains small.