Geographic arbitrage- KL

[boroangel]

Hi all,
Am looking to potentially move to KL and work remotely from there sometime next year. My job does not require for me to be in the office and I have flexibility to work from quite a few countries. I was previously considering Bangkok (which is still one of the choices) but recently have been pondering about Kuala Lumpur.

The benefits are definitely lower cost of living, nearer and easier to come back to singapore for visa runs, language not a problem, big city with lots of options and quality of living , food, pretty good metro network it looks like.

Seeking some initial input from those very familiar with KL or lived/living there:

1. Which would be a good safe area to rent apartment in KL? Looking either 1 bedroom or 2 bedroom, with good security. I do not need to be right in city center, can be on the fringes as long as connected by metro within walk distance (don't intend to rent a car). Really keen to know some suggested areas so we can start looking for listings to have an idea. Not looking for a luxurious apartment, just a standard condo with good security, maintenance and not shoebox.

2. How much expected rental cost per year for 1 bedroom and 2 bedroom condo respectively?

Any other things we need to be aware of?

 

[reddevil0728]

Hi all,
Am looking to potentially move to KL and work remotely from there sometime next year. My job does not require for me to be in the office and I have flexibility to work from quite a few countries. I was previously considering Bangkok (which is still one of the choices) but recently have been pondering about Kuala Lumpur.

The benefits are definitely lower cost of living, nearer and easier to come back to singapore for visa runs, language not a problem, big city with lots of options and quality of living , food, pretty good metro network it looks like.

Seeking some initial input from those very familiar with KL or lived/living there:

1. Which would be a good safe area to rent apartment in KL? Looking either 1 bedroom or 2 bedroom, with good security. I do not need to be right in city center, can be on the fringes as long as connected by metro within walk distance (don't intend to rent a car). Really keen to know some suggested areas so we can start looking for listings to have an idea. Not looking for a luxurious apartment, just a standard condo with good security, maintenance and not shoebox.

2. How much expected rental cost per year for 1 bedroom and 2 bedroom condo respectively?

Any other things we need to be aware of?

Is your employer going to be aware and supportive of this arrangement?

there’s potentially going to be tax and PE issue to consider.

 

[boroangel]

Is your employer going to be aware and supportive of this arrangement?

there’s potentially going to be tax and PE issue to consider.

Yes my boss has allowed me the freedom to work from anywhere, since he knows the work is intended to. Strangely given I have travelled extensively for work, my last time in KL was more than 15 years ago. Do plan to make a trip there later this year to explore a bit.

Any recommendations here on good areas to rent will be appreciated.

 

[reddevil0728]

Yes my boss has allowed me the freedom to work from anywhere, since he knows the work is intended to. Strangely given I have travelled extensively for work, my last time in KL was more than 15 years ago. Do plan to make a trip there later this year to explore a bit.

Any recommendations here on good areas to rent will be appreciated.

Your boss might be aware, but is HR aware and noted the potential Tax and PE implications?

 

[boroangel]

Your boss might be aware, but is HR aware and noted the potential Tax and PE implications?

Yes that's a good point. Wonder how those Singaporeans who work remotely out of Malaysia (JB etc) yet paid out of Singapore payroll does it. I believe some bought houses in JB, some are renting. This looks like grey area to me.

 

[reddevil0728]

Yes that's a good point. Wonder how those Singaporeans who work remotely out of Malaysia (JB etc) yet paid out of Singapore payroll does it. This looks like grey area to me.

some may be doing it illegally, but if kena caught, the Tax and PE implications can be super serious for both yourself and company

 

[boroangel]

some may be doing it illegally, but if kena caught, the Tax and PE implications can be super serious for both yourself and company

Yes agree, I will to ask for a transfer to either KL or Bangkok, whichever makes more sense from a package POv. Wonder how those digital nomads do it. TIme to consult with some tax agents.

 

[reddevil0728]

Yes agree, I will to ask for a transfer to either KL or Bangkok, whichever makes more sense from a package POv. Wonder how those digital nomads do it. TIme to consult with some tax agents.

unless you are an assignee, your package might be restructured to be based on what a typical local employee would be receiving in the respective countries.

you need to factor in a few other things

- personal tax implications, aka what is the net pay you receive after tax for both salary and bonus, and any other benefits in kind
- they so called "hardship" someone going from sg to KL or BK these are countries will exp (if you are an assignee, some companies pay hardship allowance)

amongst other things.

 

[BBCWatcher]

In principle an international assignment can often be lucrative and career boosting. But it must be legal. You just don't want the risk of running afoul of immigration or tax laws. You end up bearing all that risk. Your employer can't really defend you against criminal prosecution even if your employer doesn't abandon you in such circumstances.

When you evaluate such arrangements you should take into account any loss of non-cash compensation. As a notable example if you and your employer stop contributing to the Central Provident Fund then you should factor that loss into your evaluation.