The main emphasis of Malaysia’s housing policy is on the provision of adequate, affordable, and quality housing for all Malaysians. The government is encouraging the private sector to produce low-income housing at affordable prices. But the scarcity and high cost of land in urban areas raise costs of labor and materials and affect low-cost housing programs. This research is an overview of Malaysia’s low-cost housing needs and the Malaysian approach to low-cost housing (LCH). In this study, the process of a sample LCH has been defined and barriers and difficulties in constructing LCH have been discussed. The results confirmed that making a balance between low-income obligations and developer’s profit-making is the key element for building more LCH in the country.