Urban Development Under Neoliberalism: Addressing Socio-Spatial Inequality in Malaysia

Abstract

This study examines how neoliberal urban planning practices since the 1990s have reshaped urban development in Malaysia’s major cities and contributed to socio-spatial inequality. It focuses on the dichotomy between organically developed Incrementally Developed Areas (IDAs) and planned Privately Developed Areas (PDAs), with informal settlements and gentrification processes taking center stage. Case studies from Kuala Lumpur and Johor Bahru illustrate the coexistence of unplanned low-income communities and modern upscale settlements, highlighting the tensions between rapid economic growth and social equity. The analysis is conducted in three stages: (1) an overview of the changes in urban governance under neoliberal policies, (2) an assessment of the impact on the built environment and demographic patterns, and (3) a statistical assessment of socio-spatial inequality. Socio-economic indicators – including income levels and distribution, housing conditions, access to basic infrastructure, gentrification trends and displacement rates – are used to compare IDAs and PDAs. The results show significant differences between IDAs and PDAs and provide insights into the challenges facing urban communities in the midst of market-driven development. The study concludes with policy recommendations to promote more inclusive urban growth and reduce inequality in Malaysia’s cities, contributing to a deeper understanding of the impact of neoliberal urbanism on social justice and spatial equity.