Malaysian city leaders say funding gaps hinder urban resilience—global survey

• As cities absorb burgeoning populations, they are increasingly vulnerable to social and climate-related pressures ranging from inadequate infrastructure to public health crises.

PETALING JAYA (Oct 9): As many as 82% of Malaysian city leaders cite insufficient funding as a major barrier to climate and urban resilience, surpassing the global average by seven percentage points.

The 2025 Urban Readiness Report by Expo City Dubai and YouGov, which surveyed more than 1,000 city leaders worldwide, reveals that municipalities are struggling to balance short-term service delivery with long-term adaptation to social and environmental challenges.

In Malaysia, economic inequality also ranks among the top five obstacles to building socially cohesive cities.
 
As cities absorb burgeoning populations, they are increasingly vulnerable to social and climate-related pressures ranging from inadequate infrastructure to public health crises, Expo City Dubai Global Initiatives and Advisory executive director Nadia Verjee said in a statement today accompanying the report.

“At the same time, city leaders are grappling with limited funding for competing priorities, making it harder to deliver essential services while investing in the necessary solutions to cope with environmental and economic shocks,” she added.

Focus on wellbeing and inclusion

The report found that 81% of Malaysian city leaders prioritise wellbeing, safety, and inclusion in urban design—higher than the global average of 71%. Most local leaders emphasise a shift towards people-first design and smarter urban systems.

However, only 36% said these people-centred principles are embedded across all planning decisions, suggesting that such approaches are still being applied on a project basis rather than at the policy level.

Push for connected, data-driven cities

Nearly half (47%) of Malaysian city leaders reported that their cities are transitioning towards connected, data-driven systems, leveraging Internet of Things (IoT) technology and citizen participation platforms to improve governance and infrastructure delivery.

Globally, however, the report notes that digital transformation remains uneven, with most cities yet to reach the “cognitive” stage where predictive analytics and AI-driven systems guide urban management.

Economic and governance pressures

Across emerging markets, including Malaysia, city leaders face growing pressure to attract investment and address inequality.

Two in five (42%) Malaysian leaders ranked expanding economic opportunities and entrepreneurship as key to creating future-ready cities.

Despite these challenges, Malaysian leaders performed well in governance transparency, with 67% saying their cities communicate decisions effectively, well above the global average.

Global challenges

Worldwide, the report highlights a widespread dilemma: local governments are stretched thin, trying to meet residents’ immediate needs for housing, healthcare and transport while preparing for climate risks such as heatwaves and flooding.

The findings will inform discussions at the 2025 Asia Pacific Cities Summit (APCS) & Mayors’ Forum, scheduled for Oct 27–29 in Dubai, where global city leaders will explore collaborative solutions to address the myriad challenges confronting cities.

As Penang girds itself towards the last lap of its Penang2030 vision, check out how the residential segment is keeping pace in EdgeProp’s special report: PENANG Investing Towards 2030.