Cost Optimization Strategies for Affordable Housing Project in Malaysia

Fong, Rui Han (2026) Cost Optimization Strategies for Affordable Housing Project in Malaysia. Final Year Project (Bachelor), Tunku Abdul Rahman University of Management and Technology.

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Abstract

Affordable housing is a pressing issue in Malaysia, where rising construction costs continue to impact project viability and delivery. This study investigates the role of emerging technologies in improving cost optimisation strategies for affordable housing projects, evaluates the effectiveness of various strategies applied in practice, and explores hidden costs that may influence long-term affordability. The research adopted a quantitative approach, using a structured questionnaire survey distributed to industry practitioners via online platforms. Data collected were analysed using descriptive statistics, mean analysis, and inferential tests. The findings reveal that the majority of respondents consider emerging technologies to be cost-effective and vital in enhancing project efficiency. Among the strategies assessed, value engineering and effective design and planning received the highest mean scores, indicating that these are perceived as the most effective approaches for controlling project expenditure. Industrialised Building System (IBS) and bulk procurement were also highlighted as promising, particularly for reducing time and labour costs. However, the study also uncovered that hidden costs, such as staff training, maintenance, and regulatory compliance—are often underestimated despite their significant influence on project sustainability. Further statistical testing using non-parametric analysis showed no significant difference in perceptions across respondent groups, suggesting a shared understanding of cost optimisation measures within the industry. The study concludes that while emerging technologies and structured strategies play a central role in achieving cost efficiency, more comprehensive recognition and management of hidden costs are required to ensure long-term housing affordability. Future research should broaden the sample size and employ mixed methods to strengthen validity