Malaysia targets expansion of affordable housing construction using modular technology

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Malaysia expands affordable housing

Highlights

Malaysia aims to build 500,000 affordable homes over four years using modular technology to reduce costs and improve efficiency.
The 13th Malaysia Plan requires government and public university projects worth RM100 million or more to achieve at least 70% IBS content.
The government emphasises the need to strengthen domestic manufacturing capabilities and provide local contractors with access to training, technology and business opportunities.

This article was translated from the original. Read the original version by our correspondent here.

Housing target and use of IBS

As reported by The Edge Malaysia, Prime Minister Datuk Seri Anwar Ibrahim said technology should help the country provide homes more efficiently and at lower cost, without compromising safety, quality or liveability.

He said Malaysia aims to complete 500,000 affordable homes over four years, half of its overall target of one million homes. Anwar made the remarks while officiating at International Construction Week 2026 at the Malaysia International Trade and Exhibition Centre on Tuesday, 10 Nov.

Modular construction involves manufacturing building components in a controlled factory environment before transporting them to the site for assembly. Under the 13th Malaysia Plan, the government requires major government infrastructure projects and public higher education institution projects worth RM100 million or more to achieve a minimum industrialised building system, or IBS, content of 70%.

Impact on the local construction industry

Anwar said Malaysia also needs to strengthen its domestic manufacturing and technology capabilities in modular construction, rather than remain merely a user of imported technology. He stressed the need to develop an ecosystem that enables Malaysian companies to become active participants in the development, production and commercialisation of the technology.

He said this transition requires stronger local manufacturing capabilities, investment, market demand, skilled workers, and supportive policies and regulations. He also emphasised the importance of competitive tendering processes and good governance, noting that greater transparency could help the government reduce unnecessary costs and direct more resources towards development.

Anwar also called for local contractors, particularly small and medium-sized enterprises, to be given access to the knowledge, training, technology and business opportunities needed to participate in the growing construction ecosystem.

Previously, we reported that Menara Asia launched the Menarabena platform to match contractors with construction material suppliers and provide certification and compliance information.

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