Rich Get Richer, Poor Get Poorer: Lim Raises Alarm Over K-Shaped Economy in Malaysia

Politics
24 Jan 2026 • 11:00 PM MYT
Kamran
Kamran

A freelance content creator

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Malay Mail

DAP chairman Lim Guan Eng voiced support for the motion to endorse the Yang di-Pertuan Agong’s speech in the Dewan Rakyat on January 21, 2026, while cautioning that Malaysia’s push toward a knowledge-based economy risks evolving into a two-tier, K-shaped structure that leaves large segments of society behind.

Speaking during the parliamentary debate in Kuala Lumpur, Lim stressed that the royal address should be respected as a cornerstone of Malaysia’s constitutional monarchy. He pointed to the Malaysia Education Blueprint 2026–2035, unveiled earlier in the week, as a direct response to the King’s call for improvements in education quality and stronger command of the national language. While questions remain about how closely the blueprint aligns with party and coalition aspirations, Lim said the focus should remain on outcomes rather than political positioning.

On education reform, Lim acknowledged that earlier proposals to reinstate UPSR and PT3 had not been adopted, with the government instead introducing a new assessment framework for Year Four and Form Three. He said the Education Ministry should be given sufficient time to assess its effectiveness, with student performance as the key benchmark. Education reform, he added, must represent a leap forward rather than a cosmetic shift, particularly in improving Malaysia’s standing in international assessments measuring literacy, mathematics and science.

Lim also underlined the importance of strengthening science, technology, engineering and mathematics education to ensure the country produces enough engineers and scientists capable of mastering emerging technologies and artificial intelligence. He cautioned against allowing emotion to dilute academic standards, noting that examinations remain an important measure of excellence. In this context, he welcomed the decision to double public university intake for STPM graduates and high-performing students.

Turning to the economy, Lim acknowledged strong macroeconomic indicators recorded in 2025, including solid growth, low inflation, reduced unemployment, a stronger ringgit and improved stock market performance. However, he questioned whether these gains were being broadly shared. According to him, much of the economic upside appeared concentrated among higher-income groups and select sectors such as high technology, while households and small businesses continued to struggle with rising living costs.

This imbalance, Lim argued, reflected the characteristics of a K-shaped economy. He urged the Finance Ministry to release data on the extent of this divide and proposed a wide range of fiscal and structural measures to address it. These included targeted assistance for vulnerable communities, a review of expanded consumption taxes, stronger support for local industries, tax relief for individuals and small businesses, and simplified processes for employers hiring foreign workers.


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