Expenditure and income information from Household Income and Expenditure Survey are used to produce the inequality and poverty indicators. Most countries in the world use Gini coefficient to measure distribution pattern and income inequality among the households. The Gini coefficient is measuring income disparities based on Lorenz Curve where Gini coefficient value is between 0 and 1. The Gini Coefficient was narrowing from 0.407 (2019) to 0.404 (2022). This indicates that income inequality gap was reduce to 0.3 per cent in 2022 compared to 2019.
Income Inequality by Ethnic and Strata
All ethnics recorded smaller income gap within ethnics. Meanwhile, the income gap within urban area decreased to 0.393 index points (2019: 0.398). The income gap in the rural area also recorded a decrease to 0.351 index points (2019: 0.367). Income gap ratio between Chinese and Bumiputera are still exist at 1:0.71 (2022) as compared to 1:0.72 (2019). Meanwhile, income gap between Chinese and Indian were 1:0.84 in 2022 better than 2019 (1:0.83).
