Close the gap between rich and poor states

IZWAN ROZLIN
IZWAN ROZLIN
26 Aug 2023 12:07am

SHAH ALAM - Appropriate action needs to be taken against the nine states that recorded lower income levels and growth levels than the median national household average.

This is following the current data showing the gap compared to the other five states which is widening and worrying.

Malaysian Inclusive Development and Institute of the National University of Malaysia (MINDA-UKM) Director Professor Tan Sri Dr Noor Azlan Ghazali said that approximately 49 per cent of Malaysians who live in Terengganu, Negeri Sembilan, Sarawak, Pahang, Perlis, Sabah, Perak, Kedah and Kelantan have low incomes.

The income data also shows a widening gap every year.

"The income gap between the richest state (Selangor) and the poorest state (Kelantan) is getting bigger, from RM2,593 in 2009 to RM6,369 in 2022," he said via TikTok on Friday.

According to the latest data from the Department of Statistics Malaysia (DOSM) released last month, the median household income in Malaysia is currently RM6,338, while the average household income is RM8,479.

He added that the World Bank's Aiming High report projects that Malaysia is likely to reach high-income status between 2024 and 2028.

"The Economy Minister Rafizi Ramli stated that if the growth momentum can be maintained between four to five per cent, there is no economic crisis and economic restructuring is successful, it is possible that we can reach this status earlier in 2026," he said.

Commenting further on the high-income countries and how to achieve this, Noor Azlan said that the main states and regions are clearly divided into two.

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"A group of economic locomotives such as Kuala Lumpur, Selangor, Penang, Johor and Melaka.

"These states contributes 62 per cent to our country's economy and the income and growth of these states is higher than the level achieved at the national level," he said.

Strictly speaking, the gap needs to be addressed so that it gives more meaning to the country reaching the level of a high-income country.

"That's why in the Civil Economy speech, Prime Minister Datuk Seri Anwar Ibrahim emphasised that the quality of people's lives must improve as a whole and also that investment policies must take geographical factors into account.

"All over the country there needs to be rapid growth, that's the goal we want to reach," he said.