INFRASTRUCTURE DEVELOPMENT AND YOUTH EMPOWERMENT: A SOCIOECONOMIC ANALYSIS IMPACT IN NEW VILLAGE COMMUNITIES

Abstract

This study examines the structural relationships between socioeconomic change, policy implementation and community participation, income levels and socioeconomic well- being in Malaysia’s New Village communities. Grounded in development theory and analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM), the research investigates both direct and indirect pathways influencing well-being. The structural model demonstrated strong reliability and validity (CR > 0.85; AVE > 0.50), with acceptable model fit indices (SRMR = 0.062; NFI = 0.91) confirming its robustness. The results reveal that socioeconomic change has a significant direct effect on socioeconomic well-being (β = 0.412, p < 0.001) and an even stronger indirect effect through the mediating roles of policy implementation (β = 0.287, p < 0.001) and community participation (β = 0.264, p < 0.001). Together, these mediators accounted for 38.6% of the total effect, underscoring their pivotal role in translating structural reforms into improved well-being. Additionally, income was found to significantly moderate the relationship between socioeconomic change and well-being (interaction β = 0.173, p = 0.004), indicating that individuals with higher income levels benefit more substantially from socioeconomic improvements. These findings highlight the importance of integrated development strategies that combine infrastructure investment with participatory governance and equitable resource distribution. The validated model contributes to rural development literature by offering a nuanced understanding of how structural and individual-level factors interact to shape community well-being. Practically, the study provides actionable insights for policymakers seeking to uplift marginalized populations through inclusive, context-sensitive interventions tailored to local socioeconomic realities