30 juillet 2019
Ecrit par WID.world

New paper on income inequality and ethnic cleavages in Malaysia, 1984-2014

This new paper by Muhammed Abdul Khalid and Li Yang documents 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). We combine information obtained from national accounts, household surveys, fiscal data, and demographic statistics.

This research shows that Malaysia’s exceptional economic growth rate has been inclusive. For the period of 2002 – 2014, the real income growth for the bottom 50% is the highest (5.2%), followed by the middle 40% (4.1%), the top 10% (2.7%) and then the top 1% (1.6%). However, while average growth rates are positive across all ethnic groups (Bumiputera 4.9%, Indians 4.8%, and Chinese 2.7%), the highest growth of real income per adult accrued to the Bumiputera in the top 1% (at 8.3%), which sharply contrasts the much lower growth rate of the Indians (at 3.4%) and negative income growth rates of the Chinese (at -0.6%).