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 in affordable prices. But the scarcity and high cost of land in urban areas raise costs of labors and materials and affect low-cost housing programs. This research is an overview to Malaysia low cost housing’s need and Malaysian approach to low cost housing (LCH). In this study the process of a sample LCH has defined and barriers and difficulties in constructing LCH has discussed. The results confirmed that making balance between low income obligations and developer’s profit-making is the key element for building more LCH in the country.