World Bank senior economist Ririn Salwa Purnamasari said nearly 30% of Bumiputeras were deemed economically secure in the 2020s, compared with less than 5% in the early 2000s.
“However, this progress is mostly among Bumiputeras who live in Peninsular Malaysia, while Bumiputeras in East Malaysia did not do as well,” she said at the launch of a World Bank report on inequality in Malaysia.
Ririn said this proved that differences in location were still a key factor in assessing and addressing income inequality.
Citing the report titled “A Fresh Take on Reducing Inequality and Enhancing Mobility in Malaysia”, she said the World Bank found that Bumiputeras saw a more rapid growth of income compared with any other ethnic group.
She said that in 2004 the average Bumiputera income was 55% of the average Chinese income. By 2022, this had risen to 61%.
However, while inequality between ethnic groups had narrowed, she said disparities within ethnic groups were now the primary concern.
While Malaysia was on track to becoming a high-income nation by 2028, Ririn warned that only four of 10 Malaysians would reach high-income status if income distribution remained unequal.
Equality and fairness must be guiding principles
Lee Hwok Aun, senior fellow at the ISEAS-Yusof Ishak Institute’s Malaysia Study Programme, said equality and fairness should be the government’s guiding principles in addressing inequality.
“People want an assurance that they are looked out for. There has been a consistent call for 55 years since the introduction of the New Economic Policy, which is to help the poor irrespective of race,” he said.
Lee said there was a need for Putrajaya to clearly define and guarantee equality, particularly in the areas of education and healthcare.
“If this is declared as a basic right for Malaysians, it would become something uncompromisable and the people can hold the government accountable for that.”
Lee also said meritocracy and affirmative action should not be viewed as mutually exclusive, believing that a fair balance could be struck where policies accounted for merit while aiding the disadvantaged.