The article examines the impact of regional disparities on Malaysia’s national economic growth. These disparities are visibly predominant in the agricultural sector, followed by the manufacturing and service industries. In recognition of the inequalities, the Malaysian government has adopted balanced regional development as the main objective of its development program. In an attempt to attain the objective, there has been a substantial transfer of resources from the more-developed to the less-developed regions. It has adopted a regionalist policy from a position of comparative economic strength such as high per capita income, a period of sustained economic growth, a relatively well-developed infrastructure, substantial foreign exchange reserves, and a capability to mobilize domestic capital. [Download]