Measurement of income inequality derived from household surveys typically suffers from the problem of under-sampling and/or under- reporting of households in the upper-end of the income distribution. This ‘missing income’ could lead to underestimation of income inequality. For the case of Malaysia, the degree of underestimation is further compounded by the fact that income from non-citizens are not included in the official measurement of income inequality, most of them who are occupying the lower-end of the income distribution. In this note, we try to account for the ‘missing income’ in both the upper and lower end of the income distribution in Malaysia for the period from 2012 to 2016. This period is chosen, limited by the availability of consistent and official statistics on foreign workers. To account for the upper end of the income distribution, we calculate ‘missing income’ using the difference between household private final consumption component of national accounts and from the gross household income from the household surveys, and add this to the top decile of households. For the lower end of the income distribution, we use income earned by foreign workers, fit those educated up to the primary level of education in the bottom decile, and those educated up to the secondary level in the second lowest decile. We find that both these adjustments increase the level of income inequality, as measured by the Gini coefficient, but the initial improving trend from the unadjusted Gini coefficient during the period is still 4 observed. We then use Pareto imputation to stretch the top decile having accounted for ‘missing income’ to estimate the change in income shares of the top 1%. We find that the top 1% of the population saw declining income shares from 2012 to 2016.