Since in the early 1970s, Malaysia has undergone rapid urbanisation and
industrialisation. Federal government paid more attention to the housing needs of the
lower income groups.
The New Economic Policy (NEP) was introduced in 1971, which is housing
programmes undertaken by both public and private sectors. NEP initiated to foster
nationality unity and union-building. The housing industry was envisaged to play a
leading role in stimulating economic growth.
The NEP focused on the development of housing estates in new areas. This was
essential in achieving economic balance between urban and rural areas. In the various
national development plans (3rd Malaysia Plan: 1976-80; 4th Malaysia Plan: 1981-85 and5th Malaysia Plan: 1986-90), this strategy was further expanded to include the following elements