This paper discussed the situation of squatters in Malaysia and evaluates the socio-economic impacts of the squatters after being evicted by the city government. The purpose of this paper was to consider better policy for squatters eviction by analyzing these findings and data by our survey. Our findings revealed that above 80% of the interviewees were generally satisfied with their lives and their living standard was improved under the current public welfare approached. But some of the interviewees complained that the government did not fulfill their compliance. They were told to stay in the long house for temporary, after which they could buy the low cost houses being built . But till now, they have been living in the long houses for 8 years , yet they have not been offered any low cost house so far. Also, interviewees complained that lack of consideration was given to the vulnerable groups such as people with disabilities and elderiy people