Hard times have befallen the bottom 40 percent of
Malaysian society, with inequality in the country “high or rising”, a
United Nations Development Programme (UNDP) report says.
According to the Human Development Report 2014 released in Tokyo today, Malaysia is on the high end of the inequality spectrum.
This is despite the country ranking 62 out of the 168 countries studied, making Malaysia a country with “high human development”.
According to the report, growth in consumption for the poorest 40 percent in Malaysia is much slower compared with the general population.
The
bottom 40 percent’s consumption grew by about eight percent between
2005 and 2010, while the population’s consumption grew by about 14
percent in the same period.
This is worse than China and Uganda, which the report said also have high and rising inequality.
For example, consumption growth in China for the poorest 40 percent is about eight percent, compared to the population’s consumption growth of eight percent for the same period.
Inequality, the report says, can lead to conflict and violence, especially if prosperity is only reported in certain sections of community.
However, it said Malaysia has in place policies that have helped to address inequality, such as the redistribution of government-owned land, restriction of land ownership and public sector employment quota.
Side-effects of pro-bumi policies
However, such policies, have “unintended consequences”, the report says, including the exodus of a million highly-skilled Malaysians, mostly due to pro-bumiputera policies.
Most of the emigrants, the report said, are ethnic Chinese and highly-educated.
It said that 60 percent of skilled Malaysian emigrants “cited social injustice as an important reason for leaving”.
“The
positive discrimination policies favouring the ethnic Malays, or
bumiputera, in Malaysia over the dominant Chinese and minority Indian
populations have improved their access to education and jobs and helped
them more fully realise their economic potential.
“Yet Malaysia’s Chinese and Indian minority citizens chafe at 70 percent quotas in university admissions, flocking instead to private and foreign schools and often staying away from the country.”
According to the Human Development Report 2014 released in Tokyo today, Malaysia is on the high end of the inequality spectrum.
This is despite the country ranking 62 out of the 168 countries studied, making Malaysia a country with “high human development”.
According to the report, growth in consumption for the poorest 40 percent in Malaysia is much slower compared with the general population.
The
bottom 40 percent’s consumption grew by about eight percent between
2005 and 2010, while the population’s consumption grew by about 14
percent in the same period.This is worse than China and Uganda, which the report said also have high and rising inequality.
For example, consumption growth in China for the poorest 40 percent is about eight percent, compared to the population’s consumption growth of eight percent for the same period.
Inequality, the report says, can lead to conflict and violence, especially if prosperity is only reported in certain sections of community.
However, it said Malaysia has in place policies that have helped to address inequality, such as the redistribution of government-owned land, restriction of land ownership and public sector employment quota.
Side-effects of pro-bumi policies
However, such policies, have “unintended consequences”, the report says, including the exodus of a million highly-skilled Malaysians, mostly due to pro-bumiputera policies.
Most of the emigrants, the report said, are ethnic Chinese and highly-educated.
It said that 60 percent of skilled Malaysian emigrants “cited social injustice as an important reason for leaving”.
“The
positive discrimination policies favouring the ethnic Malays, or
bumiputera, in Malaysia over the dominant Chinese and minority Indian
populations have improved their access to education and jobs and helped
them more fully realise their economic potential.“Yet Malaysia’s Chinese and Indian minority citizens chafe at 70 percent quotas in university admissions, flocking instead to private and foreign schools and often staying away from the country.”
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