Malaysia targets 500,000 affordable homes through modular construction
Major public infrastructure projects worth RM100 million and above must meet a minimum 70% industrialised building system content requirement.
Malaysia plans to use modular construction to deliver 500,000 affordable homes over four years, Prime Minister Datuk Seri Anwar Ibrahim said on Nov 10.
Speaking at the opening of International Construction Week 2026 at the Malaysia International Trade and Exhibition Centre (Mitec), Anwar said technology should reduce housing costs and improve delivery efficiency while preserving safety, quality and liveability.
Modular construction uses components made in factories and subsequently assembled at building sites. The 13th Malaysia Plan mandates industrialised building system (IBS) content of at least 70% for major infrastructure projects involving the government and public higher education, where project values are RM100 million and above.
Anwar urged Malaysian companies to develop, produce and commercialise modular technology instead of relying on imported solutions. He said the shift would need stronger local manufacturing capabilities, investment, demand, skilled workers and supportive policies and regulation.
He also called for competitive tendering and good governance, saying transparency could cut unnecessary spending and free up resources for development. Local contractors, particularly small and medium-sized enterprises (SMEs), should have access to training, knowledge, technology and business opportunities to take part in the changing construction sector, he said.
