Malaysia’s aim of becoming a high-income nation will be meaningless if high levels of income disparity persist, former finance minister Daim Zainuddin says.

Despite the growing economy, Zaim said many Malaysians still have limited assets, little in savings and struggle to own a house to live in.

“Something is clearly lacking. The role of the government is critical in addressing these issues.

“Reliance on the market will not bring the desired results of addressing the fundamental socio-economic disequilibrium in our country,” he said when delivering his keynote address at a book launch today.

Daim delivered his speech at the launch of the book 'The Colour of Inequality' by Khazanah Research Institute (KRI) research director Mohammed Abdul Khalid.

Malaysia is currently aiming to become a high-income nation by 2020 with a gross domestic product (GDP) per capita of at least US$15,000, under Prime Minister Najib Abdul Razak’s Economic Transformation Programme (ETP).

Daim said the progress of a nation should not be measured by poverty levels or income alone, but also the well-being of the rakyat, including indicators like assets, housing, health, and opportunities in education and employment.

He added that that the government is partly to blame for the current predicament, because it opened the tertiary education sector to private institutions, and allowed meritocracy to become the main determinant in the enrolment process.

"If the majority of the rakyat have only very little in savings, how can they afford to enrol in expensive private universities? A university education would not be enjoyed by many.

"Meritocracy would evolve into an aristocracy of the rich. This is unjust, this has to change," he said.

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