Trends in Poverty and Income Inequality in Urban Malaysia: Emerging Issues and Challenges
Ferdoushi Ahmed1, Md. Shahin Mia2, Aree Wiboonpongse3, Sutonya Thongrak4, Sirirat Kiapathomchai5
1Ferdoushi Ahmed, Faculty of Economics, Prince of Songkla University (PSU), Hat Yai, Songkhla, Thailand.
2Md. Shahin Mia, School of Economics, Finance and Banking (SEFB), College of Business (COB), Universiti Utara Malaysia (UUM), Kedah, Malaysia.
3Aree Wiboonpongse, Faculty of Agriculture, Chiang Mai University, Chiang Mai, Thailand and Centre of Excellence in Econometrics, Faculty of Economics, Chiang Mai University, Chiang Mai, Thailand.
4Sutonya Thongrak, Faculty of Economics, Prince of Songkla University (PSU), Hat Yai, Songkhla, Thailand.
5Sirirat Kiapathomchai, Faculty of Economics, Prince of Songkla University (PSU), Hat Yai, Songkhla, Thailand.
Manuscript received on 17 October 2019 | Revised Manuscript received on 23 October 2019 | Manuscript Published on 02 November 2019 | PP: 517-523 | Volume-8 Issue-2S9 September 2019 | Retrieval Number: B11120982S919/2019©BEIESP | DOI: 10.35940/ijrte.B1112.0982S919
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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: Malaysia has experienced rapid urbanization and infra structure development during the past few decades. Objective of this study to assess the nature of poverty and income inequality in the urban areas in Malaysia. The study also aims to focus on the emerging issues and challenges of rapid urbanization and urban poverty in the country. Secondary data were obtained from the Economic Planning Unit (EPU), Malaysia and the Department of Statistics, Malaysia. The analyses show that though the rate of urban poverty followed a declining trend during the last few decades, incidence of poverty and hard-core poverty still exists in the urban areas of the country. It was also found that earnings of the urban dwellers increased gradually during the past few decades. But income inequality in urban localities remained wider (Gini coefficient is, on average, 0.453). Moreover, income disparity among the major ethnic groups (Malays, Chinese and Indians) in the country is greater and sizeable. The continuation of urbanization, urban poverty and income inequality bring forward new issues and challenges. Therefore, to handle these issues and challenges, it is urgently required to identify the effectiveness of specific programs as well as design and best practice of urban poverty reduction programs and policies.
Keywords: Keywords: Urban Poverty, Income Inequality, Emerging Issues, Challenges, Malaysia.
Scope of the Article: Municipal or Urban Engineering