Our kampungs can appeal to digital nomads with their more laid-back lifestyle that is suitable for relaxation and creativity – if they have fast internet connection. — Agencies
IT has been about one and a half years since Mahmoud Bondok and his family moved to Malaysia from the United Kingdom and, in his words, “We’ve never looked back”.
“The children love it and already sing songs like Saya Anak Malaysia. My daughter now goes to a new private Montessori school and is doing well there,” says the 33-year-old, who works as the head of digital development for a media organisation based in London.
Mahmoud is among the 2,000 or so “digital nomads” who are now living in Malaysia on the DE Rantau Nomad Pass while working remotely.
Digital nomads usually refer to people who travel freely while doing remote work online, and this group quickly boomed after the Covid-19 pandemic. By February 2024, global immigration specialist firm Newland Chase estimated that a total of 35 million digital nomads worldwide contribute a global economic value of US$787bil (RM3.5 trillion) annually.
Unsurprisingly, many countries have now developed specific programmes to better regulate and attract these mobile professionals to their shores. This includes Malaysia, which launched the DE Rantau programme under the Malaysia Digital Economy Corporation (MDEC) in 2022 in a bid to establish itself as a digital nomad hub in the region.
Following the programme’s initial success, Digital Minister Gobind Singh Deo announced in June last year that the eligibility scope of the DE Rantau programme has been expanded to include professionals in sectors other than IT and digital.
Since the introduction of the DE Rantau programme, Malaysia has very quickly made its mark among the digital nomad community – in 2023, global employment platform Remote ranked Kuala Lumpur 22nd on its list of best destinations for remote work, a significant jump from its 84th rank the previous year.
Among the listed pulling factors in Malaysia are our diverse cultures, the incredible food scene, the cost of living and, for a family man like Mahmoud, our family values and friendliness.
Tourism Malaysia director- general Manoharan Periasamy has also said “workations” (working vacations) and “bleisure” (business and leisure) trips saw a rise in popularity after the introduction of the DE Rantau programme.
Still, Malaysia can’t quite claim the top spot in the region yet.
Other locations in South-East Asia such as Bangkok still regularly outrank us on similar lists while Indonesia, which first launched a visa for digital nomads in 2021, has reported more than double the number of digital nomads in Malaysia.
Infrastructure and information
MDEC says they have several initiatives in the works to help boost the DE Rantau programme.
Among their plans are ways of simplifying and expediting application processes, increasing networking opportunities, and expanding nomad-friendly infrastructure, says MDEC head of digital transformation Datuk Fadzli Abdul Wahit.
“More networking events, community meetups and workshops will be organised to encourage collaboration, business partnerships, and integration into the local ecosystem.
“Meanwhile, the expansion of nomad hubs and the development of services tailored to digital nomads, including healthcare and legal support, will further enhance the living and working experience in Malaysia,” he says.
Digital Travel Technology Association of Malaysia president Rohizam Md Yusoff commends some of these plans, such as the networking events and enhancing the quality of life for digital nomads by offering reliable healthcare and safety. But beyond things like healthcare, safety, and legal support, Rohizam says these nomadic professionals also consider smaller details such as Internet speed and availability of workspaces.
“Enhancing Internet connectivity and developing more co-working spaces to cater to digital nomads’ needs will improve Malaysia’s standing,” he says.
Dr Mumtaz Aini Alivi, senior lecturer at Universiti Malaya’s Media and Communication Studies Department, concurs, highlighting the example of rural areas that could appeal to digital nomads with a lifestyle suitable for relaxation and creativity, but are lacking in Internet infrastructure.
“It is crucial for the government to prioritise the development of reliable Internet connectivity in these locations,” she stresses.
Internet connectivity was definitely a major concern for 31-year-old Alec Davidson from Arizona, the United States, when he was considering applying to become a digital nomad in Malaysia.
“I work in IT so I need a really good and stable Internet connection.
“When I came to visit Malaysia a few years ago, I realised the Internet speed was not sufficient for my work,” recalls Davidson, who eventually moved within the US instead.
Work and play: Malaysia, like many countries, has now developed specific programmes to better regulate and attract digital nomads to its shores.
Rohizam also moots more marketing campaigns to promote Malaysia’s diverse cultural offerings, affordable living costs, and natural beauty to digital nomads.
Drawing from his personal experience, Mahmoud says there is “definitely ample opportunity” for more informative content to show digital nomads what Malaysia is like and why it is a good destination for them.
“Also, like a guide on how to get started in the country once you’re here,” he says, adding that it would be good to lengthen the duration of the visa beyond its current maximum of two years as it takes about a year to settle in, especially with a family.
There is definitely a need to raise awareness about the programme, not just among digital nomads, but among relevant stakeholders such as those within the tourism industry as well, says Malaysia Inbound Tourism Association president Mint Leong.
She also believes that developing the digital capabilities and infrastructure of the tourism sector can help with promoting Malaysia to digital nomads.
“I wouldn’t say that no one knows about this but maybe only about 30% to 40% are aware of it,” she says, referring to awareness of the DE Rantau Nomad Pass within Malaysia’s tourism industry.
“You have to be more digital- friendly and get the information out there,” she says.
Tourism players are not going to be able to promote the programme if they do not even know about it.
And then, even if they do know about it, how can they approach their target market without the digital know-how, she questions.
Mahmoud moved to Malaysia with his wife and two kids one-and-a-half years ago to become digital nomads and says they have ‘never looked back’. — Photo provided
Soft landing
While she lauds the government’s efforts to bring in more digital nomads, Leong says Malaysia must also first identify its biggest competitors in this.
“We always compare apples with apples. So we say we are very good for digital nomads, but who are you comparing with?”
Once our main competitors have been identified – such as Indonesia and Thailand – Malaysia can also benefit from adopting their best practices, she adds.
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Like many others, Leong acknowledges the potential of digital nomads to contribute to the country’s economy but she stresses that there must be data on whether this potential is realised before Malaysia invests more in this initiative.
MDEC is confident that digital nomads are indeed contributing to the country’s economy.
“Pass holders report an average annual income of US$72,091 (RM321,619), with 63% spending over US$2,000 (RM9,000) monthly on accommodation, food, transportation, tourism, leisure, and schooling.
“This generates a significant economic impact. For example, if 1,000 digital nomads stay in Malaysia for a year, the country could see an additional US$15.12mil (RM68.04mil) in direct spending, excluding taxes,” says Fadzli.
As of Dec 12, 2024, MDEC has already approved 2,344 DE Rantau applications, allowing these visitors to stay between three and 12 months with the option to renew for an additional year.
It is more than about the digital nomads’ direct spending in the country, though, as Fadzli says the DE Rantau programme is also meant to attract global talent and drive the digital economy in various ways including through economic growth and investment and providing a soft landing experience for digital nomads.
“Digital nomads contribute to job creation, business growth, and investment, particularly in tech and startup sectors.
“The DE Rantau Nomad Pass also provides a flexible entry option, allowing digital nomads to test living and working in Malaysia before committing to long-term residency or transitioning to programmes like the Malaysia Tech Entrepreneur Programme or Expatriate Foreign Knowledge Worker status,” he says.
It is already working; with only six months left on his digital nomad visa, Mahmoud says he has made future plans in Malaysia.
“I’ve just incorporated a company here and will apply for Malaysia Digital status. I want to be able to hire local talent and contribute to the economy.
“Also, having gone through the process myself, I want to help with on-boarding other nomads.”
