It sounds like what you're being offered is, indeed, a genuine "transfer" rather than an "expat assignment." When I was first overseas, it was referred to as "being on the local payroll" - though you say you'll be paid in US dollars and that may be the one complication you want to check out thoroughly before you agree.

Being out of the US for a period longer than one year means that you will be able to exclude your salary from US taxation, thanks to the "overseas earned income exclusion." What that should also mean (and this you need to check) is that you will then become subject to whatever payroll deductions and local taxes the folks in your Penang office would normally pay. In essence, you should expect to pay Malayan income taxes and be subject to the Malayan social insurances system, whatever that may include.

Here's where you need to negotiate for benefits - is there a national health care program there? If not, will your employer provide some form of health insurance that will cover your costs over there? (Just continuing you on the US health care package may not do you any good, except when you return.)

What about social security (in the US) or any retirement funds you may be in (401K?)? - Will those be continued while you are overseas or not? (Can be a problem as you can't contribute to a deferred retirement fund if you don't have earned and taxable income for US purposes... and if you expect to exclude your foreign income, then you can't contribute to the retirement fund while you're away.)

It would certainly be simpler to consider taking the transfer on a genuine transfer basis (i.e. getting paid by the Penang office, on the local payroll) and not trying to negotiate the quasi-expat package stuff. It also puts you on a slightly surer footing while you are there. No worries about the US dollar melting down - a common expat concern, especially right now. The down side is that someone with your qualification may not get paid nearly as much over there as you've been paid in the US. It's still up to your employer to handle the visas and work permits (a significant contribution!).

Anyhow, that's a start. Good luck with your decision and keep us posted as you progress.
Cheers,
Bev