Over the past four decades, Malaysia has made huge strides in socioeconomic development, transforming itself from an underdeveloped country reliant on natural resources into a middle-income country with a vibrant manufacturing sector. The nation is now in its second phase of development towards achieving its Vision 2020 with urbanization expected to reach 79.8% by 2025 growing rapidly from 62% in 2000 and which is particularly prominent in Peninsula Malaysia. For areas such as Kuala Lumpur and Putrajaya in particular, where the level of urbanization is 100%, the pattern of growth has been fragmented and scattered, with much of the new growth characterized by infill development, while there is also recognition of over-burdened public amenities, shrinking green areas, and an increasing urban poor population. For many graduates entering the market in Malaysia, over 77% who described themselves as having little to no savings, affordable housing is a further challenge with houses in Malaysia costing 5.5 times more than the annual median income.

Prioritizing infrastructure development to accelerate economic growth, connectivity, mobility and the wellbeing of the people, the scope of infrastructure investments in Malaysia has ranged from transportation to power, water and sanitation, drainage and irrigation, communications, and cities and urban settlements. Like many countries, grappling with the challenge of balancing a growing population and demand, with a natural environment that is increasingly under stress, sustainable consumption, and production (SCP) was introduced for the first time in the Eleventh Malaysia Plan (2016-2020). Efforts are now underway to address these challenges from a policy perspective as Malaysia prepares its Twelfth Malaysian Plan.