In 1994, the Government of Malaysia received 61.518 million yen to commence Kuala Lumpur
International Airport (KLIA) project. The airport is located in the district of Sepang, Selangor, which
was originally oil palm plantations and small villages. The construction project completed and began in
used in the 1998. This paper is to evaluate the impact of Japan's ODA for Malaysia, particularly yen
loan to socioeconomic. In term of socioeconomic impact, many new cities were established such as
Bandar Baru Salak Tinggi, Bandar Baru Nilai, Banting, Bandar Enstek and Cyber Jaya. Similarly, new
housing, schools, shopping malls and other facilities such as the Sepang International Circuit and
Universiti Sains Islam Malaysia (USIM) were built. New roads connecting to the airport also completed
the development of these places. In terms of employment, previously many who depended on agriculture,
now turned to business, hospitality, services, transportation and others. In fact the huge investment
significantly affected the surrounding population, particularly the creation of modern towns, businesses
and educational centers which gave rise to various types of employment.