Source: Free Malaysia Today
PETALING JAYA: The gap between the rich and middle-income earners is set to further widen in Malaysia as the business environment continues to favour those with money and high skills, according to an economist.
Sunway University economics Professor Yeah Kim Leng said these two elements were the main contributing factors to the income gap and inequality.
“Our economy favours those with capital and high skills. Even though there are a lot of jobs in the service and manufacturing industries, those holding mid and low-level jobs have not seen much increase in their wages.
“Prices of food seem to be increasing faster than their salaries,” he told FMT.
He said this was not the case for those with money as they had the capital to invest in stock markets and take part in other forms of investment.
“The rich are also getting richer because of the low-interest rates, allowing them a tremendous increase in liquidity. This has injected higher capacity of cash benefiting the rich,” he explained.
Due to this, he said, the rich would continue to spend money on acquiring luxury cars and high-end properties.