With year-round sunshine, luxury homes for as little as £60,000 and no taxes to pay, it is easy to see why Scots might be tempted to retire to Malaysia.

But with the less-than- tactful name of the Silver Hair programme, the Malaysian Government's retirement visa programme has so far failed to attract more than a few hundred Scottish applicants.

Now, however, officials have renamed the scheme Malaysia My Second Home, or MM2H, and the first UK agent for the initiative is setting up shop in Glasgow.

Anyone over 50 can apply for permission to move to the tropical paradise provided they use an approved agency and agree not to work while living there.

They must prove that their income is at least £1500 a month and, if granted a visa, must place a fixed deposit of about £22,000 with a bank in Malaysia. The agency fee for each application is around £1500, including £130 for the visa itself.

Glasgow-based agent Bill Cooper believes it is a small price to pay.

Mr Cooper, the UK representative of Kuala Lumpur-based the Expat Group, said: "It completely changes peoples' lifestyle. Malaysia has a beautiful climate and the cost of living is so cheap.

"For around £60,000 you can get a three or four-bed house with its own pool on the outskirts of Kuala Lumpur. I know someone who recently bought a one-bedroom shoebox for £118,000 in Scotland - you could get a five-bed villa with servants in Malaysia for less than that. Property there is a really good investment.

"Petrol is only 28p a litre and you can bring your own car, or buy one there, tax free. Foreign income is tax-free too so you don't pay tax on your pension."

MM2H-ers can even bring a maid with them, and anyone fearing a bout of homesickness should be reassured by the fact that most people in the former British colony speak English. There are also several familiar stores including M&S, Tesco and Debenhams.

Despite the low take-up rate of the original retirement visa programme, there is an active expat community including one of the world's oldest St Andrew's societies.

Golf courses are also plentiful, which was one reason why former Glasgow policeman John Thomson and wife Lee retired there under the programme in 2001 to a luxury four-bed condominium in central Kuala Lumpur with a gym, pool and part-time maid. It cost them £265,000 then and has now doubled in value.

The 62-year-old, who is secretary of the St Andrew's Society in Malaysia, said: "It is summer all year round, the people are friendly, the choice of different cuisines is massive and eating out is not expensive.

"English is widely spoken. They drive on the correct side of the road. Malaysia has great golf courses and wonderful beaches. The cost of living is much lower than living in UK . . . as a retirement option, you don't have to commit massive resources to obtain a visa."

He said the Scottish community in Kuala Lumpur was "very active" with the St Andrew's Society dating back to 1887, making it "one of the oldest in Asia and perhaps in the world."

The lifestyle wasn't for everyone, however, he said, adding: "Some of my friends and relatives kind of struggle with the heat when they visit."

The original Silver Hair programme was launched in 1996, but after attracting just 800 successful applicants worldwide in seven years its name was changed. Since then more than 15,000 people have moved to Malaysia through the scheme, including about 1100 UK citizens of which a few hundred are estimated to be Scots. The visa lasts for 10 years but the authorities say that provided the criteria are still met it can be renewed easily every time it runs out.