High-income status meaningless if inequality persists, say economists
PETALING JAYA: The government must not be fixated on high-income status and boosting average household earnings, economists say, as these metrics do not account for inequalities or the standard of living.
Becoming a high-income nation, which as of 2020 required a country’s gross national income (GNI) per capita to exceed US$12,535 (RM52,490), does not necessarily mean the people have more money or are happier, they added, in response to Prime Minister Ismail Sabri Yaakob’s tabling of the 12th Malaysia Plan (12MP) in Parliament yesterday.
In his speech, Ismail said the country was aiming to exceed the GNI per capita threshold in the next five years, and for the national household income to rise above RM10,000.
However, Barjoyai Bardai of Universiti Tun Abdul Razak said that looking at average household income could be deceptive, as it does not take into account gaps between the rich and the poor.
He added that looking at median salaries would be a better indicator of the financial stability of the people.
“Currently, the median salary is only around RM2,000, which means half the population is making less than that. This is perhaps where the prime minister should focus on, that is on how to increase what people are actually making rather than a national average,” he told FMT.
“Even if we reach certain national thresholds, it doesn’t really mean anything, because what matters is whether individual households are able to raise their standard of living. If the top 20% make a lot more money, but everyone else is stagnant, we may raise some indicators but the country is not in a better position.”
Barjoyai suggested the government develop new qualitative and quantitative indexes in order to gauge whether people’s lives are improving, taking into account aspects like happiness rather than just earnings.
Yeah Kim Leng of Sunway University agreed, saying that the metrics that measure income inequality, such as the Gini coefficient, must also be prioritised as the country pursues high-income status.
“It is a good aspiration, but only if growth is equitably distributed. Inequality is a major issue everywhere, especially in a post-pandemic environment because of the asymmetric impact of the pandemic-induced lockdowns where the poor suffered the most.
“The rich, the ‘haves’, will be best positioned to benefit from Malaysia’s recovery, but the ‘have nots’ and vulnerable groups like the young, women and single parents will face difficulties.
“Therefore, the trickle-down effect of wealth must be accelerated and enhanced, so that opportunities can be created for groups in need.”- FMT
✍ Credit given to the original owner of this post : ☕ Malaysians Must Know the TRUTH
🌐 Hit This Link To Find Out More On Their Articles...🏄🏻♀️ Enjoy Surfing!
HOW THE ILLUMINATI BROTHERHOOD HELPED ME BECOME SUCCESSFUL IN LIFE, BEING POOR OR SUCCESSFUL IN LIFE IS A CHOICE, IF YOU ARE BOLD TO TAKE THE STEPS YOU WILL BE SUCCESSFUL IN LIFE AND ENJOY WITH YOUR GENERATIONS
ReplyDeleteHow i become successful in life, I am so grateful today is because of the illuminati brotherhood. the Illuminati brotherhood continues to change my life day by day, hails to the illuminati brotherhood, i was deeply strangled up by poverty and i had no body to help me, and also i search for help from different corners but to no available, i have worked so hard to make it in life, i have done so many things in life, just to make it and live a happy life with my family, i do not know what to do next i was just thinking about my life, i see people around me getting rich but to me, i get poor everyday of my life, i start to think of what to do next just to get rich and live a good life, one day i think of going for research in google, and i say how many people giving testimony on how the illuminati brotherhood helped then to get rich and famous, so i think of joining the illuminati brother so that i can also get rich and be famous in life, because i have go through pains in life, so i make up my mind and decide to join the illuminati brotherhood, to my own believe i see my life changed for when i followed the process of joining the illuminati, the good news is that when i join the illuminati i was given amount of $2,000,000.00 USD to start a new life, i am so proud of myself and i am a great man today, because of the illuminati brotherhood, the mission of the illuminati brotherhood is to wipe away suffering and hardship away from everyone life. so if you are a business man/woman, an artist, a pastor, a working class, student and you want wealth,fame,protection,long life, prosperity just name it, the illuminati brotherhood is ready to help you achieve your dreams, if you live in America it is free to join the illuminati brotherhood, you have to email: churchofinitiationcenter@gmail.com WhatsApp call or text +16616664507 on how to join the illuminati brotherhood, join and see changes in your life.