Malaysian island beats 25 global cities to become cheapest destination for digital nomads

Malaysia's Penang has been named the most affordable destination for digital nomads among 26 cities worldwide, with estimated monthly living costs of $950, including rent.

The island topped a study by digital marketing agency Click Intelligence, which assessed 26 cities across 15 countries based on living costs, internet connectivity, safety and visa accessibility.

Penang received an overall score of 0.78 out of 1, ahead of South Korea's Busan at 0.72 and Malaysia's capital Kuala Lumpur at 0.59, according to findings published by U.S. personal finance website Moneywise in October.

Japan's Fukuoka and South Korea's Seoul rounded out the top five. The remaining places in the top 10 went to Estonia's Tartu, Thailand's Chiang Mai, Spain's Valencia, Japan's Osaka and the Czech Republic's Brno.

The study estimated that a single person could live in Penang for approximately €850 ($950) a month, including rent. A one-bedroom apartment near the city center cost an average of €393 per month, leaving around €457 for food, transportation, internet and other expenses.

By comparison, estimated monthly living costs were €1,100 in Kuala Lumpur and €1,700 in Valencia.

Beyond affordability, Penang benefited from Malaysia's internet connectivity and its DE Rantau Nomad Pass, which allows eligible foreign remote workers to stay in the country for 12 months, with the option to renew. The researchers also considered internet usage, broadband subscriptions and homicide rates when assessing the destinations.

James Owen, co-founder and director of Click Intelligence, said Penang's appeal extended beyond its low living costs. He highlighted the widespread use of English, the island's cultural attractions and its established network of cafes and coworking spaces, according to Malaysian newspaper Malay Mail.

The ranking comes as Malaysia gains recognition as a destination for remote workers.

The country ranked fifth globally and first in Asia in the 2026 Digital Nomad Visa Index published by immigration consultancy Passportivity, according to a separate report released earlier this month.