China's social policy reform is in urgent need of a breakthrough as the country pledges to restructure its development model in the coming five years to 2015, an expert said Saturday.

"In the context of world history, any major reform needs a breakthrough, the same is true with China," Zheng Yongnian, director of the East Asia Institute of the National University of Singapore, said at a press conference of the China Development Forum 2011.

The reform in social services has been on the Chinese government's agenda since the 11th Five-Year Plan (2006-2010) period, but the global financial crisis in 2008 "hijacked" the plan, he said.

"The coming five years provides an ideal opportunity to carry out the reforms as the country's torrid growth in past years has amassed huge wealth, which could fund the costly transformation," he said.

If the overhaul is successful, China's development will be further elevated to a brand-new level. If not, the country's social stability will be challenged, Zheng said.

According to Zheng, China's policies in the housing and labor market will be key to the overhaul.

China's 12th Five-Year (2011-15) Plan for National Economic and Social Development, approved by the legislature on March 14, pledges a more sustainable growth model via higher domestic consumption and less reliance on exports and investment.

"The plan covered a wide range of areas for social services, I think China is well on the way to hit the breakthrough," he added.