In the three years since China effectively eliminated the pandemic, an increasing number of Chinese citizens are seeking opportunities abroad. Wealthier individuals tend to head to Europe and America, while those with lower incomes are choosing to move to neighboring countries such as various Southeast Asian nations. Recent data indicates a significant surge in the Chinese population residing in Malaysia, nearly doubling in the past three years, driven largely by a rise in students and new investors.
Ngeow Chow Bing, director of the China Studies Institute at the University of Malaya, told the Financial Times that the number of Chinese citizens in Malaysia could easily reach 150,000, possibly even 200,000, compared to around 82,000 in 2022. He described this estimate as “very conservative.”
As China continues to grapple with a real estate crisis, shrinking wealth among the middle class, mounting local government debts, and high youth unemployment rates, the International Monetary Fund earlier this year warned of “heightened uncertainty” due to the real estate crisis. These factors are impacting the wealth of middle-class families and leading many to lose confidence in investment prospects in China, prompting them to seek an exit strategy.
Coupled with increasingly strict government regulations, the number of Chinese citizens leaving the country has been on the rise. Many are concerned about falling into the trap of the government’s “common prosperity” agenda and are finding ways to discreetly transfer significant amounts of cash abroad.
According to a report by the Financial Times on August 5, universities and international schools in Malaysia have seen a significant surge in demand. The Ministry of Education reported a 35% increase in the enrollment of Chinese students in Malaysian higher education institutions, with 44,043 students admitted last year, up from 2021. Research by the Financial Times shows that the number of Chinese students in international schools more than doubled from 2021 to 2023.
Many Chinese individuals have also come to Malaysia for business reasons. A Chinese trade official revealed that Malaysia is home to around 45,000 Chinese company owners, managers, and workers, a significant increase from the estimated 10,000 in 2021.
“There are new arrivals every week,” stated a representative of the Malaysia-China Chamber of Commerce. He disclosed that suppliers in the electronics and electric car industries are seeking to expand capacity outside of China to avoid US tariffs. Another official from the chamber indicated a growing number of entrepreneurs exporting durians to China.
Currently, over 56,000 Chinese immigrants hold the Malaysia My Second Home long-stay visa, more than double the figure from the previous year.
After three years of living under strict pandemic controls, an increasing number of young Chinese individuals are opting to relocate overseas. Apart from Malaysia, Thailand has also become a popular destination for many departing Chinese. On the Chinese social media platform Xiaohongshu (or Little Red Book), numerous individuals have shared their decisions to move to Thailand. Subsequently, many have obtained visas for studying in Thailand while considering further plans after relocating. In late October last year, searches for “immigrating to Thailand” exceeded 300,000 within a day.
One of the most widely used long-term visas is the student visa, available for all levels of education, from kindergarten to university and language schools. The Singapore International School in Thailand recorded more than a doubling of Chinese students admitted in March 2023 compared to the same period in 2022.
An increasing number of wealthy Chinese individuals are retiring in Thailand or relocating with their children. By 2022, an estimated 110,000 to 130,000 new Chinese immigrants had settled in Thailand for various purposes including business, education, retirement, and leisure.
The trend of Chinese individuals fleeing post-pandemic life is reflected in the data regarding migration to the United States. According to US government figures, as of May this year, approximately 56,000 Chinese immigrants were detected at ports of entry along the US-Mexico and US-Canada borders, surpassing the total for the entire 2023 fiscal year by over 3,000 individuals. Furthermore, Chinese applicants constitute the largest group seeking golden visas in Portugal and Greece.
A recent report on June 18 revealed that in the past two years, China has topped the world in terms of high net-worth individuals emigrating, with a projected record-breaking 2024 figure of 15,200 wealthy individuals leaving China, once again leading the global exodus chart and further impacting the Chinese economy.