National Urbanisation Policy - Ministry of Housing and Local ...

National Urbanisation Policyiii. Less Competitive Urban EconomyThe United Nations forecast that 60% of the worldpopulation which is equivalent to five billion peoplewill reside in urban areas by 2030. With more thanthree quarter of the population living in urban areasin Malaysia by 2020, the demand for employmentin urban centres will significantly increase. Thiswill put a pressure to create enough employment inurban areas to meet the increasing demand as wellas reduce unemployment to an acceptable level. Ahigh unemployment rate will result in various socialissues related to poverty, crime and nuisance. Thepressure to create employment will be more intensein the conurbation which is expected to encountercompetition from other cities worldwide due toglobalisation and trade liberalisation. This is becausethe conurbation is anticipated to lead the nation insecuring foreign investment, and in turn becomecompetitive centres to attract investors.16Thus, one of the challenges of the urban economyis to turn urban areas into investment andcommercial centres. It should have the capacityto attract foreign and local investment and tradein order to achieve a viable economy and provideadequate employment opportunities.