Impact on poverty and income inequality in Malaysia’s economic growth

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Poverty and income inequality are extreme issues that still exist in Malaysia. Any rise in poverty and income inequality definitely affect economic growth. There are many great efforts taken by the government of Malaysia to eradicate poverty and to reduce the gap of income inequality which occurs since 1970’s. The incidence of poverty and income inequality is higher in rural areas compared to urban areas. This paper is mainly to study the level of poverty and income inequality in Malaysia together with government intervention to develop Malaysia’s economic growth. The research is focused among the working people at Ipoh, Perak. In this paper, questionnaire forms are being distributed to get information regarding the issue of poverty and income inequality. It also looks into the strategies taken by the government of Malaysia to eradicate poverty and income inequality. Few recommendations are given in terms of education policy, financial aid and assistance from government and non-government organization (NGO) to upgrade the standard and quality of living among the poor and lower-income group of people.

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    • Table 1. Incidence of poverty by state in percentage, Malaysia, 1970 and 2014
    • Table 2. Incidence of poverty by ethnic group in percentage, Malaysia, 1970 and 2014
    • Table 3. Interpretation of the correlation coefficient
    • Table 4. Mean and standard deviation of poverty (N = 100)
    • Table 5. Mean and standard deviation of income inequality
    • Table 6. Mean and standard deviation of economy growth
    • Table 7. Correlation between poverty and economy growth
    • Table 8. Correlation between income inequality and economy growth
    • Table 9. Multiple linear regression
    • Table 10. R-square of multiple linear regression