Road development in Malaysia has taken place in accordance with plans outlined by the

Government in the form of five-year plans, known as Malaysia Plans, and longer-term
Outline Perspective Plans. The Governments First Outline Perspective Plan was issued in
1971 and covered the period from 1971 to 1990. The Governments priority during this period
was to develop road projects in the rural and under-developed regions of Malaysia in order to
facilitate and accelerate the development of these regions. The Governments Second Outline
Perspective Plan, which covered the period from 1991 to 2000, placed greater emphasis on
improving inter-urban road networks and alleviating transport-related problems arising from
the rapid urbanisation of major towns and cities in Malaysia.

Under the Third Outline Perspective Plan, which covers the period 2001 to 2010, the
Governments stated policy is for the expansion, upgrading and integration of roads and
highways, railways, ports, airports and telecommunications infrastructure to be undertaken in
a co-ordinated and integrated manner. The focus of the Governments road transportation
policy is to enhance the efficiency and improve the quality of Malaysias road services. In
particular, the Governments stated priorities in respect of road development are to:

increase accessibility by road, with a view to facilitating the establishment of new growth
centres in Malaysia, as well as reducing travel time and costs;

enhance standards to be applied in the construction of new roads, especially those linking
the industrial areas of Malaysia to ports and airports;

improve accessibility to rural areas, particularly in Sabah and Sarawak, to promote
economic and social development; and

increase safety standards in the construction of new roads and the upgrading of existing
roads.
During the period covered by the Seventh Malaysia Plan, 1996 to 2000, road development
was guided by the need to expand capacity and upgrade the existing road network in
Malaysia. As a result, the total road network in Malaysia, in terms of km in operation,
increased by 7.3% from 61,380 km in 1995 to 65,880 km in 2000. Reflecting this expansion,
the road subsector accounted for approximately 59.8% of the Governments total
infrastructure-sector expenditure during this period, with expenditure on road development
amounting to RM12.3 billion. At the same time, between 1996 to 2000, private sector
expenditure on road development declined to RM7.9 billion from RM15.2 billion during the
period of the Sixth Malaysia Plan (1991 to 1995). This decline in private investment in the
road subsector, caused mainly by the economic crisis in South East Asia, was mitigated by the
increased Government expenditure on road construction and improvement projects during this
period.