There is a program called Malaysia My Second Home, or MM2H, for expats. Check the government web site for information.

Penang would probably meet most of your demands. Most expats live out near Batu Feringi (Foreigner's Beach, but not named after the expats). I wouldn't want to live out there without a car, but many people do.

Housing is much more expensive than in Thailand. The apartments built for expats are all two or three bedrooms, and rent for over $1000 US per month. You need to be in a secure building, as the robbery rate is quite high.

Also, the beach is not one of those with clean, clear sparkling blue water. There have been a lot of contamination problems over the years.

December and January are in the dry season. Unlike some countries, however, it can rain during the dry season.