Wealth is determined by taking the total of assets owned and then removing all debts

Wealth is determined by taking the total of assets owned and then removing all debts. Basically, wealth is the total sum of resources and posessions. Certain people, organizations and nations are said to be wealthy when they are able to accumulate many valuable resources,goods or posessions

Wealth Gap In Malaysia

Malaysians are ranked into three different income groups: Top 20% (T20), Middle 40% (M40), and Bottom 40% (B40). Over the years, the bar for each group’s income level has increased and this is one of the indicators of economic growth. Here’s the latest definition for T20, M40 and B40 based on the findings from the Department of Statistics Malaysia in October 2017.
To be in the T20 group, a household needs to earn at least RM13,148 while M40 and B40 groups have moved their bars up to RM6,275 and RM3,000 respectively.
To recap, the Department of Statistics Malaysia has released a report named Household Income And Basic Amenities Survey 2016. In the report, it stated that the median household income for T20, M40 and B40 has shown a compound annual growth rate (CAGR) of more than 6%.
On top of that, Malaysia’s household median monthly income crossed the RM5,000 mark for the first time last year, with M40 households registering the highest growth in median income, according to the Department.
New Median Income of T20, M40, And B40
Median Monthly Income By Household Group
Household Group Median Income 2016 (RM) Median Income 2014 (RM) CAGR (%)
T20 13,148 11,610 6.2
M40 6,275 5,465 6.9
B40 3,000 2,629 6.6
Though the income levels for each group has improved over the past three years, we should not ignore the escalating costs of living resulting from inflation and slower wage growth. To be exact, if we include inflation into the picture (3.15%, 2.1%, 2.09%, and 4.1% respectively in 2014, 2015, 2016, and first half of 2017), the ringgit’s value is going down
It was found that the average monthly salary of employees, based on the 2016 Salaries and Wages Survey Report by the Department of Statistics, increased 6.5% to RM2,463. In 2015, it rose 5.4% to RM2,312.
Despite so, this optimistic income growth seems to be only applicable to those who are working in the Kuala Lumpur or at least nearby whereas other states are still struggling to stay on track to achieve similar income levels.

Best services for writing your paper according to Trustpilot

Premium Partner
From $18.00 per page
4,8 / 5
Writers Experience
Recommended Service
From $13.90 per page
4,6 / 5
Writers Experience
From $20.00 per page
4,5 / 5
Writers Experience
* All Partners were chosen among 50+ writing services by our Customer Satisfaction Team

For better understanding , here’s the median income level for each state
Median income for a household in different states in Malaysia
State Median Income 2016 (RM) Median Income 2014 (RM)
W.P. Kuala Lumpur 9,073 7,620
W.P.Putrajaya 8,275 7,512
Selangor 7,225 6,214
W.P. Labuan 5,928 5,684
Johor 5,652 5,197
Melaka 5,588 5,029
Pulau Pinang 5,409 4,702
Terengganu 4,694 3,777
Negeri Sembilan 4,579 4,128
Perlis 4,204 3,500
Sarawak 4,163 3,778
Sabah 4,110 3,745
Perak 4,006 3,451
Pahang 3,979 3,389
Kedah 3,811 3,451
Kelantan 3,079 2,716
Interestingly, you can see that Pulau Pinang’s median income level is placed in the middle among its peers despite being the second highest performing state in the country with GDP per capita of RM47,322 after Kuala Lumpur at RM101,420.
It was reported that factories have been closing down in this particular state and employment opportunities are still relatively lower compared with Selangor and Putrajaya given the latter’s closer proximity to the city filled with better job opportunities.
Jobs with the Highest Starting Salaries for Fresh Graduates in Malaysia
Apart from Kuala Lumpur, Selangor, and Putrajaya, Pulau Pinang and the remaining 12 states’ median income level did not exceed the median income level for the M40 group in Malaysia. This means the rest still have a gap to close in order to improve the income gap between urban and rural areas.
Nonetheless, it is satisfying to see the huge jump in both Terengganu and Perak state’s median income level from 2014, most likely thanks to a boost in the tourism sector.
To give you a clearer picture, we also found out the top 20 districts in the country with the highest median household income in 2016. However, this does not mean you can get the same for moving into any of these areas. You might if you work hard and be smart about it!
Districts with The Highest Median Household Income in 2016
Top 20 Districts with The Highest Median Household Income
District Median Income 2016 (RM)
Sepang 8,174
Petaling Jaya 7,904
Gombak 7,903
Hulu Langat 7,851
Klang 6,724
Johor Bahru 6,518
Kulai 6,114
Terengganu 4,694
Bintulu 5,966
Timur Laut (Pulau Pinang) 5,964
Melaka Tengah 5,877
Barat Daya (Pulau Pinang) 5,844
Kota Kinabalu 5,683
Batu Pahat 5,516
Hulu Selangor 5,421
Muar 5,371
Kemaman 5,355
Kuala Langat 5,293
Penampang 5,211
Miri 5,208
Sungai Petani Tengah 5,172


From the above information given,you can see that wealth is one of the many factors that influence

Income inequality and this also portrays that due to the level of income of the various citizens of

Malaysia it is determined that the rich keep getting richer and the poor remain poor

Below is a way the government can reduce if not eradicate income inequality


Malaysians seem to more concerned about income inequality in the country as days go by

According to a 2014 global survey,77% of Malaysians think that the gap between the rich and poor

is a big problem for the country. Also the government has noticed that inequality remains high and that

Tackling it will be malaysias biggest challenge in becoming a high-income nation.

How can the government narrow the gap between the rich and poor?

The first and most important thing is to provide equal opportunities for everyone through proper

Education. When more workers have high skill levels ,inequality in wages decline.

Also, entrepreneurs form low class backgrounds have the skills and resources to succeed ,it is less likely

That high earning employers will always come from the rich class

When Malaysians have a higher level of education and skills, this will reduce the difference in wages and


Wage difference among Malaysians can be brought down by increasing the education level and elevating