The Regional Development Division (BPW) was established through the restructuring of the Economic Planning Unit, Prime Minister's Department (EPU, JPM) in January 2019 and continues to function as part of the Ministry of Economy. BPW consists of four units: Spatial Development, Rural Development, Corridor Development, and Regional Cooperation. Its main objective is to ensure efficient development planning, optimizing resource use to achieve balanced development across regions, states, and between urban and rural areas.

The government is committed to improving the economic status and income of less-developed states through various initiatives, including attracting foreign and local investments. Socioeconomic development is prioritized, focusing on eradicating poverty and strategically increasing household income, especially in six less-developed states compared to advanced states like Selangor, Johor, and Penang. Under the 13th Malaysia Plan (RMK13), strategies aim to bridge the urban-rural development gap through high-quality investments, improved business ecosystems, infrastructure development, and empowerment of rural economic activities. Institutions like MARA and FELDA support income diversification and entrepreneurship.

Establishing smart cities is a national agenda to enhance regional balance and inclusivity through sustainable and smart approaches for residents’ well-being, aligning Malaysian cities with global smart cities, and introducing evaluation indicators to set smart city standards. Smart city strategies address current and future urban issues, accelerating the nation’s transition to a smart nation. Elements include smart streetlights, digital signposts, increased green spaces, smart city awareness programs, social media integration for communities, waste monitoring systems, public Wi-Fi, and command centers at local authorities.

Established under the Ninth Malaysia Plan (RMKe-9), regional economic corridors aim to reduce regional disparities, generate equitable investment and job opportunities, and accelerate poverty eradication. Corridor Authorities coordinate development priorities within their respective regions, leveraging strengths, uniqueness, and resources. The five Corridor Authorities include: • Iskandar Regional Development Authority (IRDA) • Northern Corridor Implementation Authority (NCIA) • East Coast Economic Region Development Council (ECERDC) • Sabah Economic Development and Investment Authority (SEDIA) • Regional Corridor Development Authority (RECODA) The Corridor Authorities will coordinate development priorities within their respective economic corridors by leveraging their strengths, uniqueness, and available resources. Efforts will also continue to promote the use of advanced technology in upstream and downstream activities.

One initiative under UKS is the Johor-Singapore Special Economic Zone (JS-SEZ), initiated through the Joint Ministerial Committee for Iskandar Malaysia (JMCIM). On January 7, 2025, YB Rafizi Ramli and Singapore’s Deputy Prime Minister Mr. Gan Kim Yong signed the JS-SEZ Joint Agreement in Putrajaya, witnessed by both nations' Prime Ministers.

JS-SEZ envisions dynamic, competitive private-sector-led growth, enhancing economic potential and connectivity through increased cross-border trade, investment, and movement of goods and personnel.