Malaysia’s Budget 2025 Boosts Smart City Development with RM15.1 Million Allocation
In a landmark move, Malaysia’s Budget 2025 has allocated RM15.1 million to the Housing and Local Government Ministry to propel the development of smart cities across the nation. Described as the largest allocation for such initiatives to date, Housing and Local Government Minister Nga Kor Ming emphasized that these funds would help reshape urban living through a combination of technology, policy, and innovation.
Delivering his keynote address at the Future Cities Summit, Nga highlighted the importance of integrating smart city concepts to foster sustainable, inclusive economies that attract residents, encourage investment, and generate new revenue streams. These efforts align with Malaysia MADANI’s vision and the United Nations Sustainable Development Goals (SDGs), aiming to create livable, tech-driven urban environments.
Smart City Pilot Projects Across Malaysia
Nga noted that the Future Cities pilot projects have already been introduced in key locations such as Kuala Lumpur, Johor Bahru, Kulim, Kota Kinabalu, Putrajaya, Cyberjaya, Melaka, and Penang. Malaysia’s efforts appear to be gaining traction, with Kuala Lumpur recently climbing 16 spots to 73rd place in the Smart City Index by the Institute for Management Development (IMD) Smart City Observatory.
Technology-Driven Solutions for Future Cities
The minister emphasized the potential for smart traffic management systems, which use real-time data to reduce congestion and automated waste management leveraging sensors to optimize collection routes. Additionally, Nga highlighted smart payment solutions as key to enhancing tourism-driven economies in future cities, creating seamless visitor experiences that encourage extended stays and greater spending.
With RM15.1 million designated for these innovations, Malaysia’s smart city initiatives are set to drive economic growth, reduce urban congestion, and improve quality of life, positioning the country as a regional leader in sustainable, high-tech urban development.
