
According to the report, Kuala Lumpur had the highest median household income at RM9,073 – 4.3 times higher than the Pitas district in Sabah which had the lowest median household income in the country at RM2,105.
The KRI report added that national income averages did not reflect some of the challenges faced by households across the country.
It also found that households in the majority of districts earned less than the national median household income of RM5,228 in 2016 despite economic improvements in the country.
It attributed the disparity in income to demographics, urbanisation, education levels and skills.
“Urban households earn on average 80% more than rural households, and households with household heads with higher education and high skill levels have household incomes three to four times more than those with no formal education or those in low-skilled jobs,” it said.
Malaysian Trades Union Congress secretary-general J Solomon said the numbers showed that Malaysia’s economic growth did not accurately reflect the reality faced by the majority of people.
Speaking to FMT on the sidelines of a press conference, he said only a few groups were benefitting from the country’s economic growth.
“It’s only the elite business class,” he said. “The majority are still far from living a decent life.
“The elite business class has been enriching itself without allowing wealth to trickle down equitably.”
He also claimed that the government’s “neoliberalism” agenda rooted in privatisation and free trade had failed.
Solomon said the government must commit to its promise to share the nation’s wealth equitably among the people.
He also criticised the RM50 increase in minimum wage, saying the government was not coming up with realistic mechanisms to help low income earners from the B40 or Bottom 40 group.