Drop in average GDP per capita means that the average income of a family decreases, making the poor families to become even poorer. Source: Dept of Statistics, Malaysia www.dosm.gov.my It is mind-boggling to know that some are filthy rich whereas others are living in abject poverty in this country, including those in the interior of Sabah and Sarawak. Muhammed Abdul Khalid (National University of Malaysia) Li Yang (Paris School of Economics) April 15, 2019 Abstract In this paper, we document the evolution of income inequality in Malaysia, not only at the national level (for the period of 1984-2014) but also by ethnic group (for the period of 2002-2014). Any rise in poverty and income inequality definitely affect economic growth. Increase taxes for the top income brackets – The tax rate for the top income bracket in Malaysia is low at 25%, compared to other Asian countries such as Korea (38%) and Thailand (35%) Increasing this rate of 25% to be more line with other countries, would help reduce the income inequality in Malaysia. also as independent issues. UNICEF Works to Address the Impacts of Income Inequality in Malaysia After achieving independence in 1957, the Malaysian government has maintained a laissez-faire approach. Nonetheless, it is clear that in Malaysia around 1970, poverty was a major concern, and ethnic inequality was widely seen as an important cause. The objective of this paper is to examine the changes in Malaysian income distribution during the last three and a half decades and the reasons for the changes. There are many great efforts taken by the government of Malaysia to eradicate poverty and to reduce the gap of income inequality … Any rise in poverty and income inequality definitely affect economic growth. Causes of Income Inequality. Mean monthly household income by state , Malaysia, 2014 and 2016. To an extent, this approach was successful as the country’s GDP grew by 4.1 percent from 1956 to 1960, 5.0 percent from 1961 to 1965 and 5.4 percent from 1966 to 1970. The official poverty rate has fallen to well under 1%—a compound rate of decline of 10% per annum since My own view is that the first underlying cause is the nature of … This paper examines the causality between income inequality and crime in Malaysia for the period 1973-2003. So what are some of the causes of income inequality? There are many great efforts taken by the government of Malaysia to eradicate poverty and to reduce the gap of income inequality … Poverty and income inequality are extreme issues that still exist in Malaysia. Malaysians seem particularly blind to the problem of income inequality in our society. Poverty and income inequality are extreme issues that still exist in Malaysia. kuliyyah of economics and management sciences malaysian economy econ 3010 section 2 semester 2, 2015/2016 group assignment: trend analysis of income inequality in malaysia lecturer's name : … It was found that the Gini ratio for Malaysia peaked in 1976 and fell thereafter to 1990. However, inequality seems to reverse its direction since then. Any rise in poverty and income inequality defi-nitely affect economic growth. It is not a commonly known fact, but according to the Gini coefficient, which is a measure of income inequality, Malaysians have a wider disparity of income than other basket cases in … Autoregressive Distributed Lag (ARDL) bounds testing procedure is … Based on a study  on the relationship between school inequality and economic growth, it is found that when inequality in schools increases, the average GDP per capita of our country would consequently decrease. Malaysia has made huge progress against poverty over the last 50 years.