The necessity of preparing the National Urbanisation Policy was emphasised in the 8th and 9th Malaysia Plans. Its formulation is crucial to improve the effectiveness of urban service quality to create safe, systematic, modern and attractive cities. Provisions of Part IIB, Section 6B (3) of the Town and Country Planning Act (Act 172) which was amended in 2001 (Act A1129) also stated the need for the Director-General of Town and Country Planning to consider the national urbanisation policy or other similar policies in preparing the draft of the National Physical Plan.


The formulation of urbanisation policies should be based on the philosophy of a liveable city which encompass the following:

  • Generate economic development in order that the nation’s prosperity is shared equitably and beneficial to all.
  • Provide quality urban services, utility and infrastructure required by the population.
  • Emphasize safety aspects in towns.
  • Ensure the design and quality of urban fabric is based on the local cultures of the nation.
  • Focus on the preservation and conservation of the environment.
  • Promote social development and national unity.
  • Promote participation of the residents in their respective community development towards enhancing governance for greater efficiency and effectiveness.
  • Eradicate urban poverty.
  • Be sensitive and innovative towards technological advancement and development.


Urban development must be steered towards the creation of an environment that offers peaceful community living, which requires equilibrium in physical, economic, social and environmental development aspects. To achieve this, the formulation of the National Urbanisation Policy is based on the following goal and objectives:

“To create a visionary city with a peaceful community and living environment through sustainable urban development”


Based on the above goal, the following six objectives have been identified:

  • To develop a planned, quality, progressive and sustainable city;
  • To develop and strengthen a competitive urban economy;
  • To create a conducive environment in order to encourage social development;
  • To eradicate urban poverty;
  • To strengthen the planning, implementation and monitoring system;
  • To strengthen urban management and administrative institutions


The National Urbanisation Policy requires an action plan to execute the formulated policies. The Director-General of the Federal Department of Town and Country Planning is responsible for preparing and ensuring the implementation of the National Urbanisation Policy. The responsibility of implementing this policy is going to be shared by various ministries, departments and agencies entrusted with urban planning, development and service management.

Interdepartments collaboration is crucial in order to carry out the outlined measures which are the shared responsibility of the various ministries, departments and agencies. The agencies that designated for carrying out the respective policies and measures in the National Urbanisation Policy must convert the policies into their respective programmes and projects. These proposed programmes and projects which have financial implications which need to be absorbed by various implementing agencies and therefore made to be as the basis for their annual budget in the five-year Malaysia Plans. Monitoring of policy implementation and sufficient allocation of budget are necessary to ensure the National Urbanisation Policy is effectively executed.