Malaysia Economy, Income and Poverty

An analysis of household income distribution, macroeconomic growth, and geographic poverty trends in Malaysia from 1970 to 2022.

1. Macroeconomic Situation

National income growth and localized poverty rates highlight the impact of major financial crises on the Malaysian economy.

Year-over-Year Waterfall: This chart visualizes the accumulation of national income per capita. Orange drops identify significant financial contractions during the 1998 Asian Financial Crisis and the 2020 pandemic.

National Wealth vs State Absolute Poverty: National income per capita generally increases as absolute poverty rates decline. The 2020 COVID-19 shock disrupted this trend, causing a simultaneous drop in income and a spike in poverty.

2. Household Income and the Wealth Gap

Despite national growth, wealth concentration and income stratification levels reveal persistent structural inequality.

Connected Scatterplot (Mean vs Median): This plot shows mean income growing at a faster rate than the median, pulling wealth toward higher-income brackets. The top right loop tracks the impact and subsequent recovery from the 2020 pandemic.

Ranged Ribbon Chart (Mean vs Median): This chart layers both the mean and median income trajectories, shading the physical space between them. The widening gap in the orange area proves that income inequality is accelerating, as the national average pulls further away from the typical household median.

Lorenz Curve of Income Distribution: The significant curve below the line of equality confirms high wealth concentration. The bottom 80 percent of the population shares only half of the total national income.

Long-term Poverty Slopegraph: Most states achieved successful poverty reduction between 1989 and 2022. Terengganu recorded the most significant decline, with absolute poverty rates falling from 31 percent to below 10 percent.

3. Tracking Poverty

Some important definitions: Absolute poverty measures those lacking basic survival needs, while relative poverty measures those falling behind the national median. The gap between these metrics highlights different economic realities.

This Dumbbell Plot highlights the gap between absolute and relative poverty. This shows that wealthier states can still exhibit high relative poverty, as seen in Selangor and other cities, despite low absolute poverty.

4. Differences seen in States in Malaysia

Economic success varies by location. The West Coast of Peninsular Malaysia generally records higher incomes and lower poverty rates compared to the East Coast and East Malaysia.

ℹ️ Click any state on the map to highlight its data in the charts below. Click the same state again to reset.

State Absolute Poverty Map: This geographic distribution shows that East Malaysian states, specifically Sabah, continue to face a higher poverty burden compared to Peninsular Malaysia.

State Variance from National Average: This comparison identifies Sabah as the primary outlier lagging behind national averages, while Putrajaya and Selangor lead the nation in prosperity metrics.

Longitudinal Poverty Volume (Streamgraph): Total absolute poverty volume has shrunk over five decades. Major economic shocks in 1998 and 2020 caused temporary structural increases in the poverty burden across all states.

Data References

Bostock, M. (n.d.). world-atlas [Data set]. jsDelivr. Retrieved May 16, 2026, from https://cdn.jsdelivr.net/npm/world-atlas@2/

Department of Statistics Malaysia. (2024). Household income by state [Data set]. OpenDOSM. Retrieved May 6, 2026, from https://open.dosm.gov.my/data-catalogue/hies_state?visual=table

Department of Statistics Malaysia. (2024). Household income by percentile [Data set]. OpenDOSM. Retrieved May 6, 2026, from https://open.dosm.gov.my/data-catalogue/hies_malaysia_percentile

Department of Statistics Malaysia. (2024). Household poverty [Data set]. OpenDOSM. Retrieved May 6, 2026, from https://open.dosm.gov.my/data-catalogue/hh_poverty

geoBoundaries. (n.d.). geoBoundaries global database of political administrative boundaries [Data set]. Retrieved May 16, 2026, from https://www.geoboundaries.org/countryDownloads.html

Newbery, J. (n.d.). malaysia-states.topojson [Data set]. GitHub. Retrieved May 6, 2026, from https://github.com/jnewbery/CartogramMalaysia/blob/master/public/data/malaysia-states.topojson

World Bank Group. (n.d.). Adjusted net national income per capita in US Dollars [Data set]. World Bank Open Data. Retrieved May 6, 2026, from https://data.worldbank.org/indicator/NY.ADJ.NNTY.PC.CD