What has been the trend in income disparity between the richest and poorest Malaysian states?

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Income Disparity Between Richest and Poorest Malaysian States Has Widened

The gap between the richest part of Malaysia, the Federal Territory of Kuala Lumpur, and the poorest state, Sabah, has not only remained but has actually increased over the past two decades. This trend persisted even in the period following the Covid-19 pandemic.
Persistent and Growing Regional Income Gaps

Average incomes across Malaysian states have not converged; instead, the richest states have experienced faster income growth than the poorest ones. This disparity is particularly pronounced in East Malaysia, encompassing Sabah and Sarawak.
Widening Kuala Lumpur-Sabah Income Ratio

In 2004, the average income in Kuala Lumpur was 2.5 times that of Sabah. By 2019, just prior to the Covid-19 pandemic, this ratio widened slightly to 2.7 times. This increased income gap between the nation's capital and its poorest state remained consistent for at least three years after, even as the world began to reopen from pandemic-related lockdowns.
Intra-Group Inequality as a Key Driver

While national averages might suggest some convergence, the data highlights that a significant portion of income inequality arises from disparities within ethnic groups rather than solely between them. The World Bank report indicates that the differences in average incomes across ethnicities account for only 13 per cent of total income inequality in Malaysia, with the remaining 87 per cent stemming from internal variations within each group.
Disadvantaged Groups in East Malaysia

Specifically, Bumiputera individuals in East Malaysia (Sabah and Sarawak) represent the most disadvantaged subgroup, reporting the lowest mean incomes compared to all other subgroups. This contrasts with Bumiputera populations in Peninsular Malaysia, who, despite being the second-poorest group on average, exhibit significantly higher average incomes than their East Malaysian counterparts, with figures more aligned to those of Indian Malaysians on the Peninsula or Chinese Malaysians in the East.

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What has been the trend in income disparity between the richest and poorest Malaysian states?

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