Malaysia is trying to sell itself as the region's top retirement destination in a bid to encourage foreigners, including Australians, to spend their golden years in the country.

About 28,000 people from more than 120 countries have applied for and received a 10-year Malaysia My Second Home (MM2H) visa.

Australian Beverly Jones, who has received one of the renewable visas, lives in a high-rise apartment in Kuala Lumpur, a short walk from the iconic Petronas Towers.

"The cost of living is about a third of Sydney," she told the ABC.

Cost of retirement in Australia Modest Comfortable Single $454 pw / $23,662 py $882 pw / $42,861 py Couple $653 pw / $34,051 py $1,127 pw / $58,784 py Figures assume home ownership. Source: Australian Securities and Investments Commission

"That makes a huge difference to a self-funded retiree."

Longer life expectancies and rising costs have many older Australians wondering if they have enough to retire comfortably.

Recent estimates showed a single Australian who owns their own home needs roughly $43,000 per year to live comfortably, while a couple needs $59,000.

Financial analyst Chris Malkin from Baumgartner Super said the amount required to retire in Australia keeps growing.

"It is frightening," he said. "And the more you look into things the more frightening it becomes.

Australian retiree Beverly Jones lives in Malaysia on a long-stay visa. ( ABC News )

"We all know we are living into our eighties now, even our nineties.

"You really need do need in excess of $1 million."

In order to stretch every dollar, many older Australians choose to live in cheaper places such as Bali or Phuket.

Ms Jones thinks Malaysia is a better fit because English is a commonly used language.

Despite low costs, medical facilities can be first class.

"The whole system here is much better. Specialists are easier to access. It is far cheaper, even without medical insurance it is less than the gap with Medicare," she said.

"I like the multiculturalism. It is close to the rest of the world. There are plenty of things to do like go to the theatre.

"I love the weather, the climate. All my arthritis is gone."

The Prince Court Medical Centre, a private medical facility in Kuala Lumpur, said 40 per cent of its clients are expats living in Malaysia, or coming specifically for medical tourism.

Australian retirees face challenges despite attractive options

Despite the plus points, Australians seeking to retire in Malaysia face significant obstacles such as high upfront costs.

Malaysia's long-term renewable visa Holders of the MM2H visa are able to stay in the country for up to 10 years

Holders of the MM2H visa are able to stay in the country for up to 10 years Visa entitles foreigners to leave and re-enter the country largely without restriction

Visa entitles foreigners to leave and re-enter the country largely without restriction Visa holders need to obtain approval from the ministry of tourism before withdrawing their fixed deposit

Visa holders need to obtain approval from the ministry of tourism before withdrawing their fixed deposit 28,000 people have been given the visa, including 700 Australians Source: MyExpat (MM2H) / Government of Malaysia

To qualify for the MM2H visa, applicants over the age of 50 are required to supply 100,000 ringgit ($32,700) for a long-term fixed deposit and purchase a property that costs 1 million ringgit ($327,000).

The Malaysian government has admitted the long-term visa program is an attempt to get foreign money flowing into the country.

"With this program there is a lot of money coming from overseas," tourism minister Mohamed Nazri Abdul Aziz told the ABC during an interview in the country's Parliament House.

"The money is big. Each person I can say is bringing in 1 million Malaysian ringgit at least."

For Australians, living overseas affects pension benefits, and can result in it being cut off.

Hence, it is no surprise of the 28,000 people have been given the MM2H visa, just 700 are Australian.

Mr Malkin said when you add it all up, retiring in South-East Asia is "potentially cheaper, but not necessarily cheaper".

"For Australians to retire in Malaysia, they would need, grossed up, somewhere between $800,000 and $1 million.

"So I don't think it is as easy as people make out."

Visa applicants should 'do their homework'

To get around pension access problems, some Australians spend six months in Malaysia, then six months back in Australia, but it unclear how many older Australians are doing that.

Ms Jones said regardless of how Australians come to Malaysia, anyone deciding to live overseas must be confident they will not need to rely on the pension for living expenses.

"Do your homework because you need to really understand your situation with the lack of pension and this conundrum of how long will I live and how long it will last," she said.

Mary Thornton, president of the Malaysia Australia New Zealand Association (MANZA), said there are other problems foreigners face when they move to the South-East-Asian nation.

"There is not much to complain about — they can get good health care, dental care. Life can be simple as long as they do their homework," she said.

"But I've met MANZA members who get here, make their house beautiful, and three months down the track they are in tears and on the verge of depression. You need to get out and make that contact."

Expats living in Malaysia also complain about petty crime, bag snatching and police corruption.

While Malaysia has many charms, experts say Australians considering retiring in the country need to do their research. ( AFP: Manan Vatsyayana )

"You just have to make sure you don't make yourself a target and keep yourself safe on the street," Ms Thornton said.

The Malaysian government admits crime targeting foreigners is a problem.

"This is widely reported," tourism minister Mohamed Nazri Abdul Aziz said.

"And we have tried to overcome this by having more police on the beat and more police that can be seen in public."

For Ms Jones, the problems seem minor, especially since her son and grandson have now moved to Malaysia, meaning missing family moments is no longer an issue.

"I'll say for the single ladies, it is a better place to be," she said laughingly.

"Not every man I meet here has had three wives who took all the money, because here you need a little substance to get the visa.

"The schools here are good too for Australian children.

"I seemed to be in a bit of rut where I was. And that's all I should say or I'll never be allowed back in Australia."