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Distributing wealth equally may just be the answer

THE GROSS Domestic Products (GDP) index is being overemphasised for the well-being of Malaysians’ living standards.

However, higher GDP does not translate to better living standards for all Malaysians. A fairer and equal distribution of the nation’s wealth amongst the people, irrespective of race, is more meaningful than the 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 terms of income inequality in Asia.

The nation’s wealth is highly concentrated among a small elite group or rich people, the names of whom are listed in Fortune’s super rich people in the world.

Prime Minister Datuk Seri Najib Tun Razak should make Gini index a top priority in our economic development besides the high income or high GDP goal.

The rakyat expects fairer distribution of wealth, irrespective of race and skin colour, to achieve a truly 1Malaysia vision.

Our goal shall be to be in the top 10 Gini index ranking in Asia in the next five years.

N.K. KHOO,

Cheras, Kuala Lumpur.

http://www.thestar.com.my/news/story.asp?file=/2009/8/4/focus/4446886&sec=focus

http://www.malaysiakini.com/letters/110068

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