RFN5 and DPN3 launched: 85% urban, 50% forest by 2040

Prime Minister Anwar Ibrahim launched the Fifth National Physical Plan (Rancangan Fizikal Negara Kelima, RFN5) and the Third National Urbanisation Policy (Dasar Perbandaran Negara Ketiga, DPN3) on 4 November 2026, at the national World Town Planning Day event at Dewan Sivik MBPJ in Petaling Jaya. The National Physical Planning Council, which he chairs, approved both documents on 12 October. It first saw the drafts on 9 April and sent them back for checking with the states, including Sabah and Labuan.

PLANMalaysia, the planning department of the Ministry of Housing and Local Government (KPKT), prepared both. The RFN is the country's highest spatial plan. Its policies are carried into each state's structure plan and from there into the local plans that zone individual lots, so what RFN5 says about farmland, forests and transport corridors feeds into future zoning, density and land-conversion decisions.

RFN5: land use to 2040

RFN5 covers Peninsular Malaysia, Labuan and, by agreement with the state government, Sabah; for Sarawak it only coordinates high-level planning information and cross-border matters. KPKT lists five strategic focuses: the local economy, sustainable land use, natural resources, resilience to climate change and disasters, and quality of life. In February, PLANMalaysia's director-general said the draft set out 25 strategies and 90 actions under those focuses.

Housing and Local Government Minister Nga Kor Ming said the plan sets out 13 National Planning Initiatives. Those named so far:

• plan land use for an urbanisation rate of 85% by 2040;
• keep at least 50% of the land under forest;
• protect the areas that matter for food security;
• build transit-oriented development into urban planning;
• use nature-based measures for climate resilience, and plan facilities for an ageing population;
• study a possible high-speed rail alignment linking southern, central and northern Malaysia;
• treat the West Coast Expressway alignment as a potential new development corridor along the west coast;
• support studies of nuclear energy as a clean alternative source.

KPKT's statement adds three targets: smart cities in 115 local councils, 1.6 million hectares of potential land to support economic growth, and planning for a population of 39.78 million by 2040. 1.6 million hectares is about 3.95 million acres, roughly 15 times the land area of Penang state.

In April the same council took note of two Works Ministry road proposals, a new West Coast Expressway Southern Link from Banting to Gelang Patah (303.5 km) and a new 118.7 km road from Simpang Pelangai to Putrajaya, and agreed both should be explored as privatised projects.

DPN3: urban policy to 2035

DPN3 covers 203 towns under 101 local councils in Peninsular Malaysia and Labuan. It has 22 policy statements, 44 strategies and 90 actions under five focuses: a sustainable urban environment, a competitive economy, community well-being, resilient cities, and efficient urban governance. The priorities named at the launch were affordable housing, better infrastructure, safer cities and fair employment.

Also decided on 12 October

• Sinkholes: sinkhole-risk mapping becomes part of development control. New projects in risk areas need a technical assessment, and old utilities there must be inspected, before a council grants approval.
• Open space: states were urged to provide good public open space and gazette it faster.
• Perlis: the council agreed the Perlis Structure Plan 2040, which includes the Perlis Inland Port and the Chuping Valley Industrial Area.

Funding

Nga said RM700 million has been set aside to strengthen the country's 156 local councils, including RM24.5 million for a public-safety programme linked to the smart city agenda.

Anwar warned: "If implementation is delayed, progress will also be delayed."

Where to read the plans

As at 8 November, PLANMalaysia's website still offers the previous plan, RFN4, and DPN2 for download; the full RFN5 and DPN3 texts have not been posted yet. KPKT's 12 October statement is the official summary so far.