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There is a strong correlation between urbanisation and GDP. Cities are where 80% of global GDP is generated. While the past few decades have been defined by the rise of the megacity, new data suggest that there is a U shaped relationship between city size and productivity. Megacities reach a threshold where the “disadvantages of agglomeration overshadow its benefits”. Size is of less importance to other factors such as economic complexity, quality infrastructure, governance and quality of life are better predictors of productivity. These characteristics are commonly found in mid-sized cities which are the increasing focus of growth, policy and investment. To compete small towns and cities need to work collaboratively, as a polycentric network of shared resources and complementary activities. To achieve this, is it important to think beyond city and district boundaries, and consider the notion of territorial planning. In Malaysia, these concepts are in their infancy, but there is clear potential for the second and third tier cities to project their influence and offer a counter to the KL / Klang Valley supercity.