Impact on poverty and income inequality in Malaysia’s economic growth

Rabiul Islam,Irwanshah Zainal Abidin,Jeya Malar Rayaiappan,Ahmad Bashawir Abdul Ghani

doi:10.21511/ppm.15(1).2017.05

Rabiul Islam, Irwanshah Zainal Abidin + Show 2 more

Open Access

https://doi.org/10.21511/ppm.15(1).2017.05

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Abstract

Poverty and income inequality are extreme issues that still exist in Malaysia. Any rise in poverty and income inequality definitely affect 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. The incidence of poverty and income inequality is higher in rural areas compared to urban areas. This paper is mainly to study the level of poverty and income inequality in Malaysia together with government intervention to develop Malaysia’s economic growth. The research is focused among the working people at Ipoh, Perak. In this paper, questionnaire forms are being distributed to get information regarding the issue of poverty and income inequality. It also looks into the strategies taken by the government of Malaysia to eradicate poverty and income inequality. Few recommendations are given in terms of education policy, financial aid and assistance from government and non-government organization (NGO) to upgrade the standard and quality of living among the poor and lower-income group of people.

Highlights

Malaysia is an Asian country with unique multiracial peoples of different religions, cultures and languages
Items Does incidence of poverty still exist in Malaysia? Is incidence of poverty a major problem in Malaysia? Are government poverty reduction programs and policies successful in Malaysia? Does Government provide enough financial aid and assistance for those suffering from poverty in Malaysia? In your opinion, is poverty level high in rural area compared to urban area? Can people from rural area survive without any financial aid from Government?
Based on table 4, the majority of respondents agree with the statement of “Does incidence of poverty still exists in Malaysia?” with

Summary

Introduction

Malaysia is an Asian country with unique multiracial peoples of different religions, cultures and languages. In Sabah and Sarawak, there are indigenous ethnic groups with their own unique culture and heritage.The Federation of Malaysia comprises 13 states in Peninsular Malaysia, and Sabah, Sarawak in east Malaysia. There are 3 federal territories namely Kuala Lumpur, Putrajaya and Labuan.In the aspect of economy, Malaysia is a developing country with a highly open upper-middle income. Malaysia moves on to the secondary sector which is manufacturing and industry. This sector provides a greater contribution and act as the backbone of its economy. At this era, Malaysia emphasises on tertiary sector which is the service sector

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