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A missing KPI in our economic development

The Gross Domestic Products (GDP) index is being overemphasized for the well-being of Malaysians’ living standard. Higher GDP does not mean better living standard for all Malaysians. A fairer and equal distribution of nation wealth amongst her people irrespective their race is more meaningful than GDP or PPP (Parity Purchasing Power).

The Gini coefficient or index can range from 0 to 1 or 0 to 100%. A low Gini coefficient indicates a more equal distribution, with 0 corresponding to perfect equality, while higher Gini coefficients indicate more unequal distribution, with 1 or 100% corresponding to perfect inequality.

The shocking fact is Malaysia is the second worst in term of Gini index in Asia with 0.492 or 49.2%. (see http://hdrstats.undp.org/indicators/147.html). In plain language, Malaysia is second worst in term of income inequality in Asia, even below Indonesia. The nation wealth is highly concentrated in a small group of elite group or rich people, among them are listed in Fortune super rich persons in the world.

PM Najib shall make Gini index as the top priority in our economic development plan besides the high income or high GDP goal. Rakyat expects fairer distribution of nation wealth irrespective of race and color skin to achieve a truly 1Malaysia. The goal shall be in the top 10 Gini index ranking in Asia in next 5 years.

The nkkhoo.com comment board with Facebook account.