Malaysia Human Development Report 2013 Highlights: 1 Middle class. Only 20% of Malaysian households may be classified as middle-class (households whose income lies between 80% - 120% of the median household income). 2. Income disparity. Non-Malay Bumiputra in Sabah and Sarawak have fared very poorly; also, the average income of those who dwell in rural areas is about a third the income of urban-dwellers. 3. Income inequality in Malaysia is amongst the worst in the region, and has remained at the same level since 1990. The disposable income of the top 1% is 22 times the disposable income of the bottom 40% (But interestingly, still better than Singapore - just in this particular aspect). 4. Low wages. Wages have not kept up with the productivity of labour; the situation has worsened since 1996. Wages make up only 28% of national income. The corresponding figure for the Philippines is 29%; for India, 30%; for Singapore, 42%; and for China, 48%. The lower share of Malaysias workers is attributed to declining bargaining power: it is our national policy to discourage the formation of workers unions. 5. Low savings. 53% of Malaysian households have no financial assets (rural: 63%; urban: 45%). This means the social effects of any economic downturn and corresponding loss of income will be severe. 6. Wealth distribution. 11% of the population own 50% of the wealth. The wealth of the richest 40% of the population amounts to about 22% of the Gross Domestic Product. 7. Inequality within the Malay community. 3% of Amanah Saham Bumiputra (ASB) is owned by 74% of unit-holders, while 8% is owned by 0.2% of unit-holders. 8. Impact of ethnicity on hiring. The private sector is pro-Chinese in hiring whereas 90% of civil servants are Bumiputra. 9. Gender inequality. Women have lost out on growth as they are “disproportionately low in the occupational hierarchy,” are paid less than males for similar work and have difficulty re-entering the workforce. 10. The NEP was successful in the first two decades (1970-1990), but was much less successful in the next two decades (1991-present), when assessed using the measures of real growth, inequality and number of middle class households. Recommendations: 1. Enhance affordable housing, access to credit for enterprise growth and education for children. 2. Reduce practices that may lead to corruption and bribery. 3. Enhance independence and credibility of the Malaysian Anti-Corruption Commission as well as the judicial system. 4. Enact and implement a Freedom of Information Act at Federal and State Levels. 5. Introduce old age pensions. 6. Increase access to affordable healthcare. 7. Implement unemployment insurance. 8. Enhance and better implement the Competition Act to remove the negative impacts of cartelization and monopolies. mhdr.my/page/161/Download-MHDR-2013/
Posted on: Mon, 01 Dec 2014 01:37:44 +0000
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