The income gap between top earning Malaysian individuals and everyone else is widening, an economist with a local think tank said, even though income disparity between households has gone down.
Dr Muhammed Abdul Khalid said some indicators of this are how luxury car and home sales have gone up, and are still buoyant compared with sales of the middle and low-end range of these products.
The sales for luxury big ticket items are also happening at a time when overall consumer sentiment is weak due to inflation and a slow economy, said Muhammed, who is attached to the Khazanah Research Institute.
“Car sales in Malaysia are down but for Porsche it is up by 180%. Proton is down 22% and Naza down by 100%, but for Mercedes it is up 44%.
“The high end cars are selling like hot cakes and the lower end is dropping. The rich are ok. The low (income) have a problem,” Muhammed said on the sidelines of the Malaysian Student Leaders Summit in Kuala Lumpur on Sunday. Read more