Factors Of Income Inequality In Malaysia

They undermine its social fabric and the foundations of long term political stability.

Factors of income inequality in malaysia. I find that malaysia s success in reducing income inequality played an important role in the country s success at reducing poverty in combination with economic growth. There are many great efforts taken by the government of malaysia to eradicate poverty and to reduce the gap of income inequality which occurs since 1970 s. Piketty yang zucman 2019. Lower inequality a pro poor shift in distribution at a given mean accounted for 25 of the reduction in absolute poverty with growth in mean income accounting for the rest.

In 2002 the gini coefficient a tool to measure income inequality ranging from 0 to 1 with 0 indicating an equal society and 1 indicating an extremely unequal society stood at 0 46. There are many great efforts taken by the government of malaysia to eradicate poverty and to reduce the gap of income. Kuala lumpur despite a reduction in official income inequality the absolute earnings gap between malaysia s top 20 per cent and their countrymen has nearly doubled putting more malaysians in. As a plural society malaysia cannot afford to have considerable presence of poverty and inequality.

Thus having a strong anti poverty and pro distribution economic development policy is a strategic imperative. Any rise in poverty and income inequality definitely affect economic growth. Poverty and income inequality are extreme issues that still exist in malaysia. The income inequality in malaysia was measured using the gini coefficient with a higher value showing higher inequality in income.

Income growth and inequality 2002 2014. Any rise in poverty and income inequality defi nitely affect economic growth.