A small country in the Baltic region of Northern Europe has just surpassed more than 190 countries to become the world’s best place for people looking to relocate and build a new life.
Estonia ranked first in the 2026 Rumavi Global Relocation Index, which assesses 192 countries across 24 indicators, ranging from tax friendliness to visa accessibility.
But what makes the result particularly interesting is that the next two spots are occupied by Southeast Asian countries.
Singapore ranked second, followed by Malaysia in third. Both were less than one point behind Estonia.
The finding sparked discussion on Malaysian social media, with some users expressing pride while others questioned what the index actually measures.
So, how did these two Southeast Asian countries make it into the global top three?
Just 0.2 Points Behind the World’s No. 1
Singapore scored 72.6 out of 100, just 0.2 points behind Estonia, which ranked first with a score of 72.8.
Malaysia was not far behind either, with a score of 72.0.
This means the three countries at the top of the index were separated by just 0.8 points. In terms of their overall scores, the difference between the first- and third-ranked countries is very small.
However, these scores are based on 24 indicators covering different aspects of relocation. A high overall ranking therefore does not mean that a country performs equally well across every category.
The differences become clearer when the individual indicators are examined more closely.
Singapore Tops Two Indicators at Once
One reason Singapore came so close to the top spot is its performance in two particular indicators.
Singapore ranked first as the most tax-friendly country among the 192 countries assessed. It also ranked first as the best country for entrepreneurs.
The combination is consistent with Singapore’s reputation as one of Asia’s major business and financial hubs over the past several decades.
Outside the relocation index, Singapore also regularly ranks eighth globally in the Global Peace Index, a separate global safety index. This places it above the majority of countries in Western Europe and North America in terms of safety.
However, Singapore does not lead in every category.
Its two main weaknesses are high housing costs and the relatively strict and lengthy pathway to permanent residency.
So, while Singapore performs strongly in taxation and business, the cost of housing and the process of settling permanently remain challenges.
Malaysia: Third in the World, But for Whom?
Malaysia’s position is perhaps the most interesting and debated part of the ranking.
As the claim that Malaysia is the third-best country in the world for relocation spread, Malaysians themselves raised a simple question: best for whom?
Looking more closely, several factors that boost Malaysia’s score are more relevant to foreign newcomers, particularly those with greater financial means, than to the daily lives of residents who depend on local incomes.
Meanwhile, some indicators that are more closely connected to everyday life score considerably lower.
Road safety received a score of 52 out of 100, rule of law 57, while local business opportunities scored just 39.
One of Malaysia’s main attractions for foreign newcomers is the Malaysia My Second Home, or MM2H, programme. It is a long-term visa programme that can be valid for between five and 20 years.
MM2H was revamped in 2024 and is now divided into four categories: Silver, Gold, Platinum, and Special Economic Zone.
The programme also offers relatively broad family coverage. The visa can include a spouse, unmarried children up to the age of 34, children with special needs without an age limit, as well as parents and parents-in-law under the same visa package.
A lower cost of living compared with Singapore is another attraction. Combined with a tropical climate throughout the year, these factors also help boost Malaysia’s score in relocation indexes of this kind.
However, these factors do not necessarily reflect the experience of Malaysians who go about their daily lives on local incomes.
So, What Does This Index Actually Measure?
There is one important point to understand before using this ranking as a reason to move to another country.
Rumavi itself explicitly explains that the index is a relocation tool, rather than a measure of the quality of life of a country’s native population.
There is another issue to consider: data quality.
Of the 192 countries assessed, only 127 have sufficiently strong institutional data. The remaining 65 countries have lower levels of data confidence.
For these countries, the results should therefore be viewed as directional indicators rather than definitive figures.
Ultimately, the positions of Estonia, Singapore, and Malaysia in this index show why the label “best place in the world to relocate” needs to be understood in the context of the indicators being used.
Singapore and Malaysia have indeed made it into the global top three. But that does not necessarily mean they are the best places for everyone.
A country that appeals to someone looking to build a business, find a safe environment, or obtain a long-term visa may not offer the same experience to residents who depend on local incomes.
