Govt wants more public-private partnerships in urban development under 13MP — minister

PETALING JAYA (May 19): The government will rely more heavily on public-private partnerships (PPP) to deliver large-scale developments under the 13th Malaysia Plan (13MP). 

Speaking at the Malaysia Building and Property Summit 2026 today, Deputy Economy Minister Datuk Indera Mohd Shahar Abdullah said the government would strengthen PPPs across affordable housing delivery, transit-oriented development, urban regeneration of older townships, and brownfield redevelopment. 

"PPP becomes essential, not optional" as federal fiscal space tightens, Mohd Shahar said, as reported in Bernama today.  

"This is not a retreat from the government's role; it is a recalibration," he said in the event organised by KSI Strategic Institute for Asia Pacific.

Selective support framework emerges

Speaking at the summit, Mohd Shahar said developers whose projects deliver stronger social and environmental returns, and align with regional priorities would receive greater government backing, including faster approvals, infrastructure coordination and improved financing access.

But the more significant policy cue came from the evaluation framework he outlined. 

Under 13MP, projects would be assessed not just on economic contribution, but also on spatial integration, social impact, environmental footprint and governance metrics — a framework that suggests a shift away from purely GDP-led approval logic towards a more outcome-based project prioritisation model.

The government's emphasis on catalytic regional development under 13MP includes the Johor–Singapore Special Economic Zone, MRT3, the East Coast Rail Link, the Pan Borneo Highway and transit-oriented development ecosystems around rail infrastructure.

Housing reform a core 13MP priority

Mohd Shahar also highlighted the structural mismatch in Malaysia's housing market, citing 32,801 completed but unsold residential units worth RM16.37 billion as of the first quarter of 2026.

"The mismatch is not in demand. The mismatch is in what is being built versus what most Malaysians can actually afford," he said.

Housing reform would remain a core 13MP priority to address affordability and cost-of-living pressures, he added.

The government also said it would continue strengthening Building Information Modelling adoption by July 2026 through expanded training, facilities and industry support, aimed at improving construction efficiency and reducing design conflicts.

Additional reporting by Bernama

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