A Model of Economic Equity in Combating Rising Inequalities in Malaysia

Shafinah Begum, Abdul Rahim (2021) A Model of Economic Equity in Combating Rising Inequalities in Malaysia. Global Business and Management Research: An International Journal, 13 (2). pp. 74-83. ISSN 1947-5667

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Abstract

The heightened debate on the rapid rise in economic disparities globally has evidently resulted in economic inclusiveness to become more relevant than ever in the history of mankind. As one of the fastest growing developing within the Eastern region, Malaysia has not been spared from the evils of widening economic gap between the ultra-rich and the lowest income strata group. An equity model is proposed to essentially demonstrate how existing economic measures and channels grounded on equitable distribution of resources can improve economic inclusiveness in a timely manner. This research underscores the critical role of equity as a distributive principle to enhancing economic equality without compromising efficiency. The model focuses on economic rights, equal access to quality basic education and healthcare, gainful employment, and social protection as the primary means to reduce inequity amongst different member groups of the society often divided by personal factors beyond ones’ control. Using a method known as operationalization, the broad concept of equity in economics is effectively collapsed into components, dimensions, and indicators to enable an objective achievement assessment. Analyses reveal that taking full advantage of the various equity measures built in the existing economic development plans, can produce desirable long-term effects on the economic equalities, and inclusiveness subsequently. The recommendation is to apply the model to the Shared Prosperity Vision 2030, given the similarity in goals and strategies.

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