Housing Over Rail Stations Time To Translate Laudable Intent Into Reality

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 Transit oriented development is meant to connect ordinary people to efficient public transport, reduce car usage, and provide affordable, centrally-located housing.
Malaysia’s prime minister recently floated an idea that housing, particularly low-cost units, be built above railway stations to encourage rail usage and reduce road congestion.
At its core, this is a nod toward Transit-Oriented Development (TOD)—a globally adopted strategy that aims to create compact, walkable and public-transport-centric urban environments.
On paper, it is a sound idea and another good political promise to solve low cost housing issues in the Klang Valley.
However, in practice, Malaysia’s track record with TODs paints a more complicated picture.
We’ve seen this concept before—KL Sentral, JB Sentral, Penang Sentral (Butterworth) and proposals at stations like Ipoh and Seremban, which were all built on a similar premise.
However, rather than focusing on low to medium cost housing or enhancing public transport integration, these developments have largely been dominated by high-end residential and commercial projects.
This raises a fundamental question: For whom were these TODs built?
Defining success
If “success” is measured by financial returns, then such developments were likely a win for investors and developers.
No doubt, high-end condominiums and luxury office towers yield higher revenue per square foot, but from the perspective of urban planning and public policy, the outcome is more troubling.
TODs were meant to connect ordinary people to efficient public transport, reduce car usage, and provide affordable, centrally-located housing.
Instead, most high-end units were sold as investment properties, often to buyers (including foreigners) who already own multiple homes—and multiple cars.
Unsurprisingly, many of these residents don’t rely on trains or transit systems, despite easy connectivity. Instead, they drive, contributing to the very congestion TODs were meant to solve.
For that reason, we need to redefine what “success” looks like.
Public land, especially in public transport-rich areas, should serve the public interest first—not private wealth accumulation.
There’s a growing population of Malaysians, particularly young families and low-income groups, who are still locked out of home ownership.
The current premise upon which this promise is made, fails to address this reality.
Singapore model
Singapore offers a compelling comparison. TODs there feature a mix of public and private housing.
Most importantly, public agencies retain strong oversight—from land use planning to ownership rules.
Their “one household, one home” policy is strictly enforced, speculation is tightly controlled, and public housing is not just plentiful—it is located right next to MRT lines, not out in the fringes, like the ones in Puncak Alam, Lembah Beringin or Salak Tinggi.
To achieve similar outcomes, Malaysia must go beyond developer-led models.
This includes:
redefining TOD objectives to mandate affordable housing, not just density;strictly enforcing single-ownership rules for low- and medium-cost housing, to prevent speculation;linking development approvals to public benefit metrics, such as units delivered for B40/M40 households and actual public transport usage data;ensuring transparency in land deals involving government or GLC-owned land, to prevent public assets being handed over without clear social returns.RAC, transit stations
One of the most promising levers lies in lands belonging to the Railway Asset Corporation (RAC), as well as mass transit stations that have been identified in developers proposals.
As one of the largest landholders in the country, RAC controls valuable parcels around and along rail infrastructure.
Instead of monetising these purely for profit, they should be the anchor for equitable TODs.
Any joint venture on such land must be structured with strict quotas for low- and medium-cost housing, and with rent-to-own options for young and lower-income households.
This requires a coordinated, whole-of-government approach. Transport, housing, state planning agencies and local authorities need to work in sync.
Most importantly, the government must resist the temptation to treat TODs as mere real estate ventures, with dollar signs written all over the agreements.
Laudable intent
While the prime minister’s intent is laudable, policy must follow vision, which must be followed through during implementation with rigid enforcement.
Without strong regulation, housing above rail stations may become just another profit-driven venture—luxury condos with private lifts, built atop public infrastructure, far out of reach for most ordinary Malaysians without homes.
Malaysia doesn’t lack ideas—it lacks policy enforcement and alignment.
If we want TOD to be more than just a planning buzzword, we must reclaim it for the people it was meant to serve. - FMT
The author can be reached at: [email protected]
The views expressed are those of the writer and do not necessarily reflect those of MMKtT.

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