Abstract: The increase in Gross Domestic Product (GDP) is associated with the growth of the country’s economy and that basic needs such as health and education would develop as a by-product of growth in GDP. However, development experts acknowledge that high levels of per capita GDP and industrialization are neither necessary nor sufficient for meeting basic needs. Attempts have been made to device indices that reflect the extent to which basic needs are satisfied. One of the best known of these indicators is the Physical Quality of Life Index (PQLI). This study attempts to measure the PQLI between the states in Malaysia. Results show that the more developed states with high GDP also experienced high PQLI but nevertheless although, some states experienced high GDP, the PQLI are low and vice versa.