Malaysian Economics

2 CAUSES OF INEQUALITY OF INCOME DISTRIBUTION 2. 1 Differences in education During the British rule, each social group also by and large experienced different education systems. Most Malays were educated in the political relation school system located in the rural areas that used the Malay language as the mass medium of instruction. The Chinese on the other buy the farm sent their children to the Chinese medium schools, which mere established by Chinese voluntary associations.Nevertheless , the elite segment of each ethnic group loosely sent their children to the English medium schools located in the urban areas, where the spirit of education was far better than the rural Malay-medium school. Furthermore, almost secondary and 3rd education was available in the urban areas with English as the medium of instruction. Those who were educated at the English medium schools tended to gain positions in the civilised service, commerce, business, and professions. Since most of the M alays were educated in the rural Malay medium schools, this indirectly limited their upward social mobility. . 2 Differences in skills Since Malay unaccompanied received the education from government school in rural areas, the skills were limited. deprivation of skills and knowledge were the factors of unemployed. This will worsened the situation of poverty and income disparities between the ethnic groups. Sectoral employment of Bumiputera and non-Bumiputera (%) in peninsular Malaysia, 1970. Sector Bumiputera Non-Bumiputera primary feather 67. 6 32. 4 Secondary 30. 8 69. 2 Tertiary 37. 9 62. 1 Notes Primary (agriculture)Secondary (mining, manufacturing, construction, utilities, and transport) Tertiary (wholesale and retail trade, finance, government, and other services) 3. 3 Differences in access to dandy A majority of non-malays are usually found to be supporting in the southern and western states of Malaysia , such as Pulau Penang and Kedah. These states form new-fashioned urban firmaments and also modern rural sectors which are playing the grand roles in the economic activities. On the other hand, the Malays lived in the northern states of Malaysia, and they are indeed in the traditional rural sector.This imbalanced development had take the imbalance capital gain among the ethnic groups. Wealth Decomposition by Asset Classes in 2007 Asset Classes Bumiputera Chinese Indian Savings 567 2 795 1 026 Investment Assets 1 853 4 629 2 058 Financial Assets 2 419 7 423 3 083 Real Estate 70 453 120 903 84 146 Wealth 72 873 128 326 87 229 3. 4 Differences in unemployment pattern The leave of mean manpower in their own field is the main problem in employment restructuring. Despite the limited success of bumiputera students, the presence of skilled and qualified bumiputera workers and professionals are inadequate.A few factors that contribute to this problem are such like limited accessibility to modern educational facilities and quality educational or even low family income. Bumiputera are mainly attracted to the public sector and lately the bumiputera states the record for having the highest employment rate among malay university graduates. Although the manufacturing sectors display a tremendously high rate or malay labor force, most of them are employed in the lower train or non-manegerial level of occupations.