Malaysia launches new housing Policy to improve urban liveability
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The Malaysian government launched the National Housing Policy 2026-2035 to address urban challenges and improve housing affordability.
This new policy focuses on creating a better relationship between housing supply and local demand, establishing stronger data systems, and integrating transport planning with housing developments. It also aims to create a more regulated and formal rental ecosystem. The government is responding to a national urban population that now exceeds 75 per cent.
While the country delivered more than 511,000 affordable housing units under the Twelfth Malaysia Plan, officials recognize that rising living costs and climate risks require a shift toward long-term resilience. The new policy treats housing as a matter of urban liveability and inclusion rather than just construction. To support these goals, UN-Habitat and URBANICE Malaysia work with local authorities to turn international commitments into local plans.
These groups help cities conduct Voluntary Local Reviews and Voluntary Subnational Reviews to measure progress on Sustainable Development Goals. They also operate the Malaysia Urban Innovation Hub to share successful urban solutions between different towns. The Ministry of Housing and Local Government (KPKT) is currently funding three community-led pilot projects. These projects use practical ideas shared by residents, young people, and researchers during the Malaysia Urban Forum 2026.
The initiative reflects a strategy to involve the people who live in these areas in the design of their own neighborhoods.
