SEU227 DEVELOPMENT ECONOMICS - GROUP 07

SEU227 UNIVERSITY SCIENCE
DEVELOPMENT ECONOMY MALAYSIA

14/07/2022

Prepared By : Instructor:

GROUP 07 DR SITI RAHYLA BINTI
RAHMAT

POPULATION, POVERTY AND
INEQUALITY IN MALAYSIA AND JAPAN

GROUP MEMBER LIST

NUR FADZLIN NAJWA BINTI MOHD NOOR MUHAMMAD ZAWAWI BIN ZAFRI NURUL SYAHFILAH BINTI SAPPALANDO
(156337) (157870) (156857)

MUHAMMAD AMIRUDDIN BIN ABDUL MANAF MUHAMAD ARIS IKMAL BIN MOHD NASIR
(156558) (156910)

MUHAMMAD AZFAR BIN AHMAD SOLIHIN MUHAMAD SALIHN BIN MAHAMAD FAUZEE
(156749) (156702)

POPULATION, POVERTY AND
INEQUALITY IN MALAYSIA AND JAPAN

Table Of Content

01 02 03

Abstract Introduction Literature
Review
04 05
06
Methodology Discussion
Summary

POPULATION, POVERTY AND 01
INEQUALITY IN MALAYSIA AND JAPAN

ABSTRACT

Malaysia and Japan are the countries which have been in a good-term for
a long time and have already cultivated positive and amicable partnership
as well as strong bilateral trade and investment linkages for a long time.
Even if both countries are different in terms of the development, it still can
work together for the harominess relationship between the two countries. In
this study, we compare both countries based on three aspects which are
population, poverty and inequality. These three aspects have been
measured and conducted by using a qualitative method which is document
analysis method. By using this method we find out about ageing
population, household poverty, and income and gender inequality. Through
this study, we can see the pattern of how a country has a high population
but confronts various challenges that need to be addressed by the
government and their households. Plus, we can also see how big the
difference is between both countries according to the three aspects.

MUHAMMAD ZAWAWI BIN ZAFRI (157870)

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INTRODUCTION

According to Mohd Yusof (2005), population is a large group of
individuals to be studied. It is also the object or event studied and the
word population also refers to the whole set of study subjects which
does not only include human groups but also includes any type of
subject group whether animals or others that is the focus of the study.
According Raywat Deonandan, poverty means is a person or household
who has a low income and can be see trough the Poverty Line Income
(PGK) and they are unable to own and provide adequate necessities
such as, food, house, clothing and so on. According to the United
Nation (UN), Inequality means unequal conditions, especially in the
status, rights and opportunities possessed by a person or group and it is
a very important concept in the theory of social justice when with
different people. An example of difference is “economic inequality”.
Economic inequality which also means “income inequality”, “monetary
inequality” or more broadly “inequality in living conditions”. Other
inequalities also differentiate between rights -based and legalistic
approaches. Inequality in rights and obligations can have different
effects. For example, there is inequality in legal matters between the
common people and those with political power. So, through the above,
we will discuss about the population, poverty and inequality that occur
in 2 countries with different economic status, namely Japan which is a
developed country and Malaysia which is a developing country and
also we know that Japan population larger than Malaysia. And that
shows other categories also having an big difference and next we will
how far the difference among both of Japan and Malaysia in that
categories. The following is the discussion about population, proverty
and inequality in Japan and Malaysia.

MUHAMAD ARIS IKMAL BIN MOHD NASIR (156910) 1

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LITERATURE REVIEW : POPULATION

MALAYSIA

Malaysia's current population is 32.7 million believe that this issue will burden and
people in 2021 with a median age of 29.3 affect the country's economic growth
years. . The percentage of the population aged rate through increased government
0-14 years in 2021 decreased to 23.0 per cent spending, especially in the health sector.
compared to 23.3 per cent in 2020. Indirectly, an ageing population will
Meanwhile, the percentage of the population lead to more health problems in the
aged 15-64 years also decreased from 69.7 country. In addition, the elderly often
per cent in 2020 to 69.6 per cent in 2021. This suffer from chronic diseases that will
is due to the decline in the Non-citizens require long -term treatment to recover
population which was mostly comprised of because elderlies are less healthy than
foreign workers. The percentage of the the youngs. So, the current health care
population aged 65 and over increased from system in hospitals is not sufficient to
7.0 per cent to 7.4 percent for the same handle a large number of patients at one
period. This shows that the total population in time even though Malaysia has
Malaysia is increasing year by year. In 2019, comprehensive medical and healthcare
the total population in Malaysia is ranked 6th services for the general population
in Southeast Asia with a total of 42 because of lack of trained staff. To
populations from 193 countries in the world. control this issue, the Ministry of Health
The increase in population is likely due to the has prepared a National Elderly Health
occurrence of immigration from other Services Action Plan to ensure more
countries. Data obtained from the 2020 effective health care to improve the
census shows that in 2019 as many as 3.2 health status of the elderly. overall the
thousand are non -citizens. elderly are often associated with the
possibility of experiencing various
One of the issues facing Malaysia is an health problems and take more time to
ageing population. According to Ahmad recover from the disease, Through this
Shukri Abdul Hamid and Norliza Mokhtar in implementation will ensure the quality
the article entitled "Malaysia Menuju Negara of life of the elderly.
tua: Apakah Yang Boleh Dipelajari Daripada
Pengalaman Negara Jepun?"

MUHAMMAD AMIRUDDIN BIN ABDUL MANAF (156558) 2

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LITERATURE REVIEW : POPULATION

JAPAN

The Japanese population is getting An ageing and shrinking population
older and shrinking rapidly. With a will burden Japan’s public finances as
median age of 48.4 years, Japan’s age-related spending such as health
population is the oldest in the care and pensions increases while the
world. The Japanese government tax base shrinks. Demographic trends
says that there will be almost one are closely linked to low interest rates.
elderly person for every person of In an ageing society such as Japan,
working age by 2060. In the same during the pre-retirement phase,
40-year period, Japan's current individuals increase savings for
population of 127 million will retirement while investment remains
shrink by more than a quarter. This subdued due to poor prospects, leading
accelerated pace of ageing and to pressure for lower rates. Low
population decline puts Japan at the interest rates depress the profits of
forefront of global demographic financial institutions and give them an
change, posing economic and other incentive to invest in riskier assets in
challenges for the country. In it is an ongoing search for higher returns.
latest assessment of the Japanese Japan’s declining population has also
economy, the International resulted in vacant homes due to
Monetary Fund (IMF) projects oversupply and weak house prices,
2020 economic growth to remain especially in rural areas. Such an
resilient at 0.7 percent. A recent impact on the housing market poses
IMF staff paper estimated that risks to the financial health of
Japan’s economic growth will Japanese households and banks. As a
decline by 0.8 percentage points on result, the weakness of Japan’s
average each year over the next 40 financial sector will grow as it is
years due to demographics alone. demographic shift continues.

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LITERATURE REVIEW : POVERTY
MALAYSIA

Issues related to poverty are becoming According to Nor Azrul bin Mohd Zin and
more worrying in Malaysia. According Noordeyana binti Tambi, in the journal
to Research Note entitled The Reality of entitled "Factors of Urban Poverty towards
Poverty: A Theoretical Study by Norzita the Development of Late Bloomer’s
Jamil and Siti Hadijah Che Mat Education, Poverty can also be determined
examines the poverty faced by by education levels". According to a study
households in Malaysia. This household conducted in the People's Housing Program
poverty can be due to lack of income for (PPR) area, 86% of the population in Kuala
daily needs as well as low level of Lumpur is in the B40 group and below with
education. This will make them unable an average income of RM3,000. As a result,
to get out of the cycle of poverty without poverty limits an individual's ability to
help and support from the authorities. obtain higher education. As reported by the
Poverty that faced by households if not Department of Statistics Malaysia (2016),
controlled and eradicated can threaten 39.6% of Malaysians living in urban areas
the economic and political stability of have only SPM certificates, compared to
Malaysia. According to them, Absolute 11% and 37.% with diplomas and degrees.
poverty is the poverty referred to in According to this, urban communities in
Malaysia which is measured by using a Malaysia still have a low level of education.
comparison between the income of a As reported by the Department of Statistic
group of households with a level called Malaysia , the percentage of people living
the Poverty Line Income (PLI). This PLI in absolute poverty in Malaysia in 2020 is
is determined based on the living 8.4%, which is an increase from the
standards of the country's population. previous year, when the percentage was
This PGK is determined based on the 5.6%. Looking at the poverty rates by state,
living standards of the country's Sabah recorded the highest poverty rate at
population. 26.3% followed by Kelantan at 21.2%,
Sarawak at 12.9%. This shows that Sabah
and Sarawak still show high poverty rates in
Malaysia compared to other state.

MUHAMMAD AMIRUDDIN BIN ABDUL MANAF (156558) 4

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LITERATURE REVIEW : POVERTY
JAPAN

Poverty is a problem facing by It’s hard to argue with these numbers,
every country. The word is simply but over the past 30 years, the numbers
defined by a person’s lack of have dropped significantly since the
property or income that he or she burst of the 1980s bubble. In 2018, the
needs to live. In Japan, poverty is poverty rate among OECD member
often invisible but no less. countries was 12.5%. Japan's poverty
According to report, Ministry of rate will be at 15.7% in 2018.
Health, Labour and Welfare Meanwhile, single women with
(OECD) analysed that 34 countries, children are most severely affected, as
Japan ranked sixth from last in rates for single-parent households
terms of the share of the population increased by about 50% between 1992
living in poverty. By 2020, Japan’s and 2006. Overall, the rate has
poverty rate is nearly 16% which is increased since the 1980s, and one in
defined as people whose household seven children lives in poverty today.
income is less than half of the The child poverty rate shows the
median of the entire population. In percentage of children under the age of
2007, Japan had the second highest 18. For a household of one parent and
rate among the G7 countries. one child, this means a monthly
According to the OECD, the Tokyo income (including public assistance) of
metropolitan area is home to one of 140,000 yen or less. Japan’s child
the highest homelessness rates in poverty rate has increased over the
Japan. It estimates there are about past three decades, rising to 16.3
1,242 homeless. percent, making it one of the highest
among OECD member countries.

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LITERATURE REVIEW : INEQUALITY
MALAYSIA

Inequality in Malaysia can be seen Income inequality in Malaysia also
from several aspects such as can be seen based on ethnic
inequality in income, education and .According to an article entitled "The
so on. Income inequality in Malaysia Colour of Inequality: Ethnicity,
is measured using the Gini Class, Income and Wealth in
coefficien. A Journal written by Malaysia" review by Mohd Zul Alwi
Ishak Shari entitled “Economic bin Mat Adam, ethnic Chinese lead
Growth And Income Inequality In the income and wealth found in
Malaysia, 1971–1995” has shown Malaysia as a whole. For example,
that inequality in Malaysia is greatly the Chinese have 2135 times the total
influenced by income, especially in financial assets of the Malays and the
rural and urban areas. According to Indians have 1296 times the total
the journal, a large income gap number of Malays. As many as 72%
existed between urban and rural of ethnic Malays didn’t have
households in 1970. If we can see the financial assets, followed by 21%
level of inequality in income Chinese and 7% Indians. The
distribution in Peninsular Malaysia is continuing differences show that the
higher in urban areas than in rural people with zero financial assets are
areas. In urban areas most jobs 66% Indians, 64% Bumiputera and
require skilled workers such as in the 56% Chinese. There is an unequal
manufacturing and industrial sectors distribution of wealth within
as compared to in rural areas. The ethnicities, with the wealth minority
high standard of living in the city having most of the wealth while the
also causes the income to also vary poor have less.
as individuals working in the city
will be paid high salaries. 6

MUHAMMAD AMIRUDDIN BIN ABDUL MANAF (156558)

POPULATION, POVERTY AND 03
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LITERATURE REVIEW : INEQUALITY
JAPAN

The inequality that occur in Japan which has women hold 6.4 percent of departmental
a gender gap. A lack of gender equality in director positions or equivalent; 8.9 per cent of
career opportunities and long work hours division heads or equivalent; and 14.7 percent
perpetuate wage differences between men and of task unit supervisors or equivalent. Gender
women. Despite the Japanese government’s at birth is also a determinant of whether a
attempts in recent years to pass laws person becomes a manager in Japan, not an
promoting women’s economic activity, Japan individual’s achievements such as earning a
ranked a dismal 110 out of 149 in the World college degree. Another cause of the pay gap
Economic Forum’s 2018 Gender Gap Index, between the sexes is the high level of gender
which benchmarks countries on their progress segregation in the profession. In OECD
toward gender parity in four main areas. countries, women tend to be over-represented
While this position is a improvement in human services professions such as
compared to 114 from 146 in 2017, it remains education, health care, and social work. The
the same or lower than in previous years (111 main careers open to Japanese women are
in 2016 and 101 in 2015). The main cause is extensions of women’s traditional family roles,
the large number of unfamiliar female such as children’s education, nursing, and other
employees. Ordinary workers in Japan are support roles in health care. While the
employed on indefinite conditions without government intends to pay the same salary for
specific employment obligations and are the same job especially for permanent and
strongly protected from dismissal and irregular employees with the same job.
retrenchment, while non-ordinary workers Moreover, because the lack of opportunities for
including many full-time workers have fixed- women persists not only because of hiring
term contracts with certain employment practises but also because of the long working
obligations. In addition, the cause of the hours required, the government should create
gender pay gap among ordinary workers in conditions for a better work-life balance. It can
Japan is the lack of female managers. do this by changing a work culture that relies
According to the 2016 Base Survey on on long working hours and by promoting a
Equality of Employment Opportunity by the flexible workplace. It can also encourage a
Ministry of Health, Labour, and Welfare change in attitudes that assume the
(OECD), responsibility of childcare and home care is
only for women.

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METHODOLOGY

The research methodology covers DOCUMENT ANALYSIS
the ways, methods and approaches METHOD
used to achieve the objectives and
goals of the study. It is divided into The process of collecting research
two methods namely quantitative data through research,
and qualitative. In this study, we investigation, examination, analysis
have used qualitative methods in and detailed analysis made on the
obtaining information about this written material relevant to the
study. subject matter studied. Among the
documents that can be used are
QUALITATIVE diaries or journals, syllabi and
syllabus descriptions, daily
Qualitative research involves teaching plan books, textbooks and
collecting and analysing non- reference books for examination
numerical data to understand papers and monthly tests and
concepts, opinions, or experiences. photographs. The following is one
It can be used to gather in-depth of written materials used by us to
insights into a problem or generate find information: “Banci: Penduduk
new ideas for research. The most Malaysia cecah 32.4 juta, bilangan
common qualitative methods are lelaki lebihi wanita sebanyak 4.6
observation, interview, survey and peratus”, “Malaysia menuju negara
secondary research. The method we tua: Apakah Yang Boleh Dipelajari
use is document analysis. Daripada Pengalaman Negara
Jepun?”, and “Trend Penuaan
Penduduk Malaysia Dan Johor”.

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DISCUSSION

02 .
POVERTY

01 . 03 .
POPULATION INEQUALITY

9

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POPULATION

AGEING NATION IN MALAYSIA will have the status of an old country
Malaysia is a country with a by 2030. The Malaysian Population
and Housing Census conducted in
population of 32.4 million people. 2010 showed an increase in the
According to the Prime Minister of number of senior citizens which was
Malaysia Dato 'Sri Ismail Sabri said 2.3 million people or 7.9 percent of
the total Malaysian population aged the total population of 28.3 million
65 and above is 6.8%, 69.3% are people. Specifically, looking at the
Malaysians aged 15 to 64 years while growth rate of the population aged 60
the remaining 24% are Malaysians and above, there is a clear upward
aged 0 to 14 years. trend. Beginning in 1970 when the
percentage of senior citizens was only
Population By Age Group around 5.4 percent (539,118 people)
of the total population, the rate has
0 - 14 Years 15 - 64 Years 65+ Years increased consistently to 6.0 percent
(1,194,000 people) in 1995 to 6.6
7.8 Million 22.5 Million 2.2 Million percent in 2000. This number is
expected to increase to 11.3 percent
(24.0%) (69.3%) (6.8%) by 2020 (UN, 1991). This upward
trend is estimated to continue until it
According to The World Population reaches 15 percent by 2030
Prospects: 2017 Revision (2017), the (Department of Statistics, Malaysia,
number of senior citizens in Malaysia 1973; 1974; 1983; 1995).
is 2.803 million people out of 28,955
million people. This number
represents 9.68% of the total
population.

The UN projection places Malaysia The implication of a country with a
in the category of a country that large number of seniors that is not
balanced with the number of adult and
young population is an increase in

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POPULATION

government spending. It is because for women or the increase in
the government will provide various unmarried women, the increase in the
initiatives to ensure the well-being of number of women in education and
the elderly population is maintained. the increase in women's participation
Examples of government initiatives in the labour force which causes many
are the provision of pensions, the women in Malaysia to be slow to
expenditure of medical expenses and marry. This is very worrying because
the provision of care centres for the the increase in the elderly will cause
elderly are in dire need of high costs. the demographic shift of the
According to BERNAMA, Malaysia population of which "baby boom" to
will face the status of an ageing nation "elderly boom". (Aris Ananta dan Evi
in 2030. Nurvidya, 2009).

The next implication is the AGEING NATION IN JAPAN
implication for the elderly themselves. According to Yoshiko Sumeya and
Senior citizens who live for a long Yvonne Wells in writing an article
period of time will face challenges in entitled "Current issues on ageing in
terms of rising cost of living. This is Japan: A comparison with Australia"
because the amount of pension and Japanese people aged 65 and above
Employees Provident Fund (EPF) is increased from 2000 which is 17% to
not enough to cover their living after 27% in 2020. The total population of
employment. Therefore, the Japan is estimated at 129 million. Of
government had to provide various the 129 million, 18.6% are people
forms of assistance channels to help aged 65 and above. Japan is one of the
household spending. countries with the largest number of
senior citizens. This is because the
The ageing nation factors are the people of Jeoun mostly live in good
increase in the age of first marriage prosperity.

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For example, Japanese people take aged 65 and above (an estimated 7.3
great care of personal hygiene, health million people) will suffer from
care and care for the environment. dementia. It is a significant increase
Japan is the country with the largest over the current patient population of
number of senior citizens at 35.6 around 4.6 million people.
million people.
According to Former Japanese Prime
However, due to Japan’s Minister Shinzo Abe, he wants to
overcrowded elderly population now increase the number of nursing homes
faces various challenges such as and increase the salaries of staff on
challenges in economic and health duty. This is to address the problem of
aspects. For example, Japan faces lack of money, and energy
challenges in dealing with dementia experienced by families who are
which affects the majority of seniors forced to care for seniors with serious
in Japan. Therefore, Japan also faces dementia and Alzheimer disease.
challenges in dealing with chronic
disorders of the brain that affect the In addition, Japan also faces
memory of the elderly. In addition, challenges in terms of an increase in
the Japanese government also had to total government spending. This is
incur high expenses to feed the elderly because the government has to incur
who had serious dementia so that they high expenses to build old folks
could not afford to feed themselves. homes, provide medicines in the
health industry and increase the
According to Norlaila Hamima salaries of the staff involved in the
Jamaluddin in her news article titled process of caring for the elderly.
"Dementia Now Major Crisis In Because Japan is one of the countries
Japan" the Japanese Ministry of with a large number of senior citizens,
Health said, by 2025, one in five the Jeoun also has to face challenges in
country's population terms of his country's economy.

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POPULATION

Moreover, because Japan has a This is because the matter brings
large number of senior citizens various problems not only to the
compared to other countries, the rate government but also to households.
of elder abuse also increased. For example, we can see the
According to Norlaila Hamima difference between Malaysia and
Jamaluddin in her writing titled japan. Japan has a larger number of
“Dementia Is Now A Major Crisis In senior citizens than Malaysia, so
Japan” cases of elder abuse in Japan Japan has faced various challenges
also increased from 12,623 cases in that must be addressed by the
2006 to 16,384 cases in 2015. Mostly government and households. The
involving family members. Due to the challenges faced by Japan are more
increasing number of Dementia and than the challenges faced by
Alzheimer's patients in Japan, this Malaysia.
also affects the mental health of
individuals aged 24 to 40 years. This The challenges the Japanese
is due to the level of stress in the care government has to face are the
of seniors facing Dementia and challenges in dealing with the
Alzheimer’s. In addition, the level of increasing rate of dementia and
stress in the care of the sick elderly is alzheimer’s patients, the increase in
also increasing. therefore, this case mental patients, the increase in suicide
has contributed to the increase in rates and the increase in government
mental patients increased suicide rate. spending. The challenge faced by
Malaysia is that Malaysia only has to
AGEING NATION IN MALAYSIA incur high expenses for medical costs
AND JAPAN and the improvement of care centres
for the elderly.
Therefore, it can be concluded that
increasing the number of senior
citizens in a country is not a good
thing.

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POVERTY

POVERTY IN MALAYSIA 2019. Lastly, as for the others
To begin with, when a ethnic, there was 20.5% of poverty
in 2016 and it reduced to 13.5% in
household's income falls below a 2019. Besides, urban poverty
specific value, absolute poverty shows 3.8%, whereas the rural
results. In 2019, absolute poverty in poverty rate shows 12.4% in 2019
Malaysia is 5.6% which has respectively. This depicts that rural
decreased since 2016 which was poverty is has been bigger than
7.6%. The occurrence of poverty urban poverty.
can further be identified in terms of
race and strata. In the aspect of Poverty Among Ethnic
ethnicity, Bumiputera being the
largest race group in Malaysia ETHNIC 2016 2019
represents the highest level of
poverty compared to other ethnics BUMIPUTERA 9.7% 7.2%
in the country.
CHINESE 2.2% 1.4%
In 2016, there was 9.7% of
poverty mainly Bumiputera and it INDIAN 5.5% 4.8%
reduced to 7.2% in 2019. The same
trend happened to other ethnics as OTHERS 20.5% 13.5%
well. In 2016, there was 2.2% of
poverty among Chinese ethnic and One of the issues related is the
it reduced to 1.4% in 2019. less wage for basic needs to those
Besides, in 2016, there was 5.5% of who are affected. Based on Samadi
poverty among Indian ethnic and it (2022), Human Resources Minister
reduced to 4.8% in Datuk Seri M. Saravanan
announced that the country's
workers are expected to enjoy the
setting of a new minimum wage

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rate of around RM1,500 a month members of the M40 middle-income
before the end of this year. class into the B40 lower-income
category. (Tsubasa, 2022)
This leads to the increment of
minimum wage in Malaysia by the Next, issue of low level education.
end of the year with an increase of Education and poverty are simply
RM300 from the basic wage inextricably linked due to people
RM1,200 to RM1,500. living in poverty stop gaining
knowledge from school just to go to
Having an increment in minimum work. Hence, a large number of
wage is one of the ways for the low-skilled workers produced.
government to alleviate poverty
that increased because of the Sunbiz (2022) believes that those
pandemic. The increment of low-skilled workers are paid at such
minimum wage is mainly focused low minimum wage simply because
on assisting the B40 group. As we of their low skills and productivity.
all know, as a consequence of the Most affected low-skilled workers
pandemic, most Malaysians fell are B40 due to insufficient income
into the B40 group. Uzir (2021), and very low savings. Moreover, the
stated that absolute poverty for B40 are heavily in debt. In reference
Malaysia has increased to the 12th Malaysia Plan, in 2019,
substantially from 5.6% in 2019 to only 12.8% of B40 heads of
8.4% in 2020. This statement is households had tertiary education,
also supported by Hannah Yeoh, while 21.2% of them had minimal
former deputy minister of women years of schooling. The B40's lack
when she says the Covid-19 of education and skills prevents
pandemic has forced many

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them from obtaining high-paying Based on the journal, Poverty
jobs which lead to poverty. among Japanese Children and
Youths: Issues & Policies, 13.9 %
POVERTY IN JAPAN children aged under 18 lived in
With a rapidly aging and declining poverty. However in 2018,
population, jobholder is one of according to the Japan's Ministry of
Japan's most valuable resources. In Health, Labour and Welfare (2019)
2019, Japan's poverty rate stands at the rate has dropped slightly to
15.7%, according to the latest 13.5%.
figures from the Organization for
Economic Co-operation and There a lot of implications in
Development. That metric refers to child poverty. The mental health of
people whose household income is children around the world adversely
less than half of the median of the affects their ability to cope with
entire population (Eustance, 2020). social situations, succeed and
This shows that although Japan is a function properly. According to the
high income country (The World journal of Child Abuse and Neglect,
Bank, 2021), poverty is still living in poverty can cause
inescapable. depression and anxiety among
Despite Japan have to be pressured parents because those living in
to focus on each person within the poverty tend to experience chronic
human resources, there is a portion psychological strain and stress (Aya
of the society whose potential is et al,2018). Moreover, children are
being neglected, which is children not sent to school, mainly because
that are in poverty. parents have to spend their money
for basic needs.

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Families are at risk of becoming To look at the different
unhealthy and dying due to food perspective, Japan has higher
shortages and basic needs for population and higher poverty rate
survival. According to Ayu et al., than Malaysia. According to the
(2018) poverty can directly lead to Statistics Japan (2020), Japan's
child neglect, like not feeding the population in 2019 was around
child, by restricting parental ability 126.17 million. While Malaysia
to meet a child’s basic needs due to 31.95 million (DOSM, 2020).
lack of money. Taking the 2019 poverty rate for
both countries, Japan has higher
POVERTY IN MALAYSIA AND number of people in poverty which
JAPAN is about 19.81 million of people
while Malaysia only has about 1.79
Ergo, both countries Malaysia and million respectively.
Japan both have different issues and
challenges that are needed to Malaysia having not only less
alleviate or more better, eradicate. wage issue but also low level of
The thought of huge amounts of education. While Japan mainly
poverty in the world mainly in these focusing on the child poverty issue.
2 countries is disheartening. We can The authorities mainly the
see that although Japan is a high government should assist their
income country, still poverty countries in order for the issue to be
coexist. Meanwhile Malaysia, also settled once and for all. Although it
known as one of the upper middle sounds too good to be true,
income countries, also prone to initiatives should be done more
poverty. often so that the citizen of the
countries will be living a better, fair
and happy life.

MUHAMMAD AZFAR BIN AHMAD SOLIHIN (156749) 17

POPULATION, POVERTY AND 05
INEQUALITY IN MALAYSIA AND JAPAN

INEQUALITY

Household Income in Malaysia periodic figures, the household

The latest official statistics show income gap has been recorded
that income inequality in the widening in Malaysia since 2004
country has increased in 2019 indicating income inequality are on a
compared to 2016 as the median downward trend in general.

Thheoulasetheosldtinocfofmiceicaolntsintuaetsitsotgircoswshow that income inequality in
thien cMoualnaytsriya. hIans ithnecreHaousseedholidn 201I9nccoomme pinaeqrueadlitytoba2se0d16onagsrotshs e
mIRneRIecndpeooimptartheoneranth2dHo02Bo1u09au1sssie9cehArheoemloleldealendsaeiitdnsiIenecscdoStomuotmrdoveaedeyyc,aaoynn, dt(iDn0ic.nBe3ou8pam9easeisrtoctitnm0Aoc.r3meeg9an8erste)ondwwoitfhfioiielSnrestuarMSurtbruaiaaslrlnatv(i0yeac.rs3yse6iaa4s.
DeMparatmlaeyntsioaf (SDtaOtiSstMics) fMigaularyseias shtoow 0i.n36c7o).meininaedqdiutiaonli, tyinicsome
bca(ieanDrfleeOcoquuSrpaMelalait)ittydae)xdfisiaegbunscraadealsscndeulddiassthecpoodoownnsbtatawrsibneioldcbeoucmoitanenitocenogmstionhretreeqoieeu(aassloiftntycmeai aarmajllodseroseleydicnuguecctrrhetoinaitsincyesdgsi nfocro mthee
( tcahgxreoemuspes, s

two czaatekgaotrieasnndamseolycgiarolsssiencoumreity sBcuhmeipmuteeracon(t0r.3i8b5utitoons)0..389),

iMInna(seaboncecqdlofiacuoamylroaesdeeslieitfsaaticpfnxuyoiierce.snisatiqIycbenaulrnneseadttcaehl.icesriHtomnemynciedotgssrim,ihnbowaeeurMfteriiotgavn(hpralsaaofaitldtesyuho)rsseeiisavnC(i​iacin0nshloe.3duiqnmm8uiee2caseeleaoi,atttyfo(is0entu.40hchbr1.4oeaei11sgmde1tGhod)e.iue0nrs.Aii4oniis1nncne7go)qfc,oedoutrafihmnsafpideilnoecicIstGinoayedmbinilniaeenti
idnecdurcetiansgintagxefsr,ozmaka0t.3a9nd9 isnoc2ia0l 16 itnocom0.e4, 0it7 inincre2a0se1d9f.roBmas0e.3d91oinn
2i0n0sce4pcourmirneiteyvdiisgoccahaueptsmilnheygacaosinvntbarciebiolueamtniboenlrese)i.ncpoeerqrdiuoeaddlii2tctwh0ye1fir6ideagerwtuoenars0ieon.a3sngn9,3iaitnnhicndreMeo2a0hwsa1eoln9awu.wyhsInesaenirhaaddiotdslcititdarinomencen,ed
Income inequality in Malayisnia gisenetroaulr.ban areas (0.380 to 0.385) but a
measured using the Gini coefficient.
decrease when it came to rural areas

Higher values indicate higher (0.365 to 0.361). For income

income inequality. In terms of gross inequality based on disposable

income, income inequality in income, the Bumiputera group

Malaysia increased, with the value recorded a decrease from 0.380 to

of the Gini coefficient increasing 0.377, while both Chinese (0.396 to

from 0.399 in 2016 to 0.407 in 0.399) and Indians (0.372 to 0.399)

2019. Based on previously available

MUHAMAD SALIHN BIN MAHAMAD FAUZEE (156702) 18

POPULATION, POVERTY AND 05
INEQUALITY IN MALAYSIA AND JAPAN

Gini 2016 2019
Coefficient (0.399) (0.407)

GROSS
INCOME

AREA 2016 2019 ETHNIC 2016 2019
URBAN 0.389 0.398 0.389
RURAL 0.364 0.367 BUMIPUTERA 0.385 0.417
0.411
CHINESE 0.411

INDIAN 0.382

DISPOSABLE
INCOME

AREA 2016 2019 ETHNIC 2016 2019
URBAN 0.380 0.385 0.377
RURAL 0.365 0.361 BUMIPUTERA 0.380 0.399
0.399
CHINESE 0.396

INDIAN 0.372

MUHAMMAD ZAWAWI BIN ZAFRI (157870) 19

POPULATION, POVERTY AND 05
INEQUALITY IN MALAYSIA AND JAPAN

INEQUALITY

recorded an increase in income among G7 countries and the ninth
inequality. highest among OECD countries.

Gap between Poor and Rich Government data shows, nominal
in Japan wages increased only 1.2 percent from
2012 to 2020. Japan’s average
The implementation of the household wealth fell by 3.5 percent
economic stimulus under Abenomics from 2014 to 2019. To be sure,
caused the Japanese stock market to inequality is much more pronounced
soar as luxury cars sold out rapidly in in countries like the United States and
Tokyo. However, the new wealth is Britain. Japan is among the 39
concentrated in a small number of countries surveyed by the
people and not distributed as a Organization for Economic Co-
whole. There are many workers operation and Development (OECD)
working in the childcare facilities in 2020 based on the Gini coefficient,
industry in Tokyo resigning as a which measures inequality.
result of their rarely increasing
salaries. The government collects However, there are the wealthy who
taxes but the money is not used to could afford to turn things around for
help people who really need it. the better under the Abenomic
stimulus when they spent seven
Abenomic is a large dose of million yen ($ 61,800) to buy a
finance, fiscal support and growth Mercedes-Benz after reaping large
strategies that boost stocks and sums of cryptocurrency investments.
corporate profits. Yet, it failed in Abenomics brings huge returns to
creating wealth to households investments because the pumping of
through higher wages. According to money (central banks) pushes up the
the organization’s survey, based on price of financial securities.
data available up to 2020, Japan’s
poverty rate is the second highest

MUHAMAD SALIHN BIN MAHAMAD FAUZEE (156702) 20

POPULATION, POVERTY AND 05
INEQUALITY IN MALAYSIA AND JAPAN

INEQUALITY

Alfa Romeo sales in April-

September more than doubled from

the previous year’s level. Sales of

other imported brands such as

Ferrari, Jaguar and Maserati also

increased. This indicates an increase

in luxury goods among the rich due

to the increase in the value of

investment. Thus, the

implementation of economic

stimulus under Abenomics creates a

gap between the poor and the rich in

Japan.

MUHAMAD SALIHN BIN MAHAMAD FAUZEE (156702) 21

POPULATION, POVERTY AND 03
INEQUALITY IN MALAYSIA AND JAPAN

SUMMARY

In conclusion, from the above statement we can see that a country with a
high population has a high percentage to become a developed country.
Japan's high population of 129 million people makes the country able to
achieve a large economy, however, it also has a negative effect if the older
generation increases because based on the above information we can see
that the majority of the vulnerable population are masters. Because Japan
has a larger number of senior citizens than Malaysia it causes various
challenges that need to be addressed by the government and their
households. Meanwhile, in Malaysia, which has a much lower population
than Japan, which is 32.4 million people, as well as a few elderly people
from that number, it reduces the challenges that need to be faced. In terms
of income inequality, Japan shows a large gap between the poor, middle and
rich. Moreover, tax collection by the government sector is not used as
assistance to the people. Meanwhile, in Malaysia, income inequality still
exists but is generally declining. both countries. It is clear that the two
countries show a very significant difference where the quality of life of
Malaysians is higher than in Japan even though only Malaysia is a
developing country.

MUHAMAD ARIS IKMAL BIN MOHD NASIR (156910) 22

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