Globally income inequality is on the rise. With growing income inequality, market outcomes are no longer Pareto efficient as it is benefiting only a small group of individuals. Working with the World Values Survey data, this paper aims to provide an additional perspective on income inequality in Malaysia. We find evidence that individuals’ underlying beliefs, ideologies and education level are important determinants of their attitudes toward income distribution. In addition, the paper concludes that individuals’ preference for income distribution is significantly shaped by the experiences and economic condition in their local communities. States that are poorer and more ethnically diverse prefer more equal income.