The old town of Malacca, a UNESCO World Heritage Site in Malaysia
Malaysia has been named the world’s top retirement destination for 2026, with two other Southeast Asian countries also ranking among the 10 best places to retire, according to the Rumavi Global Relocation Index.
Malaysia received a score of 75.8 out of 100, tying Panama for the top overall score among 192 countries and territories. Portugal ranked third, followed by Thailand and Costa Rica. The Philippines ranked eighth.
The Singapore-based relocation and advisory firm Rumavi assessed countries across 24 measures covering finances and taxes, quality of life and health care, safety and stability, and the ease of settling and finding opportunities.
For retirees, health care quality was the most heavily weighted factor, followed by the tax treatment of income earned abroad, cost of living, personal safety and the affordability of healthcare.
Malaysia’s combination of relatively inexpensive living costs, accessible medical care and favorable tax policies helped propel it to the top of the list. The country scored 97.8 for affordability and 85 for its treatment of foreign income.
The ranking also identified some areas of concern, including street safety and the rule of law.
Thailand ranked fourth worldwide and second in Southeast Asia, scoring 74.3. Its strongest marks came in affordability, currency and banking services, digital infrastructure and health care.
The Philippines placed eighth with a score of 71.6, driven largely by its low costs and relatively affordable housing. It received a 95.1 score for affordability and 91 for housing affordability. Its treatment of foreign income also scored well.
The Philippines’ lower marks included climate risk and rule of law, while its health care quality score was 67.
Other Southeast Asian countries also made the list. Brunei ranked 11th, Cambodia 16th, Singapore 27th, Indonesia 58th, Vietnam 76th and Laos 91st.
Malaysia also ranked No. 1 globally for digital nomads in Rumavi’s broader relocation rankings, though it placed third overall among the world’s best countries for relocation.
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