The main objective of economic development in a country is to obtain sustainable and inclusive economy growth. It includes a vast growth in all over the region and the growth that can reduce inequality income. To develop such a vast growth, some important matters are definitely proposed to lower the level of poverty and to reduce the level of gap amongst the society. Indicator showing inclusive growth has been developed including the method to measure the inclusive growth in ASEAN 5, Indonesia, Malaysia, Thailand, Singapore and the Philippines. This paper aims at analysing the inclusivity of ASEAN 5 economic growth and the factors influencing its inclusive growth. The data comprises those of ASEAN 5 from the period of 2000-2014. Klasen (2010) formula on inclusive growth, Poverty-Equivalent Growth Rate (PEGR), is applied to find out the inclusive growth measurement. Further, Generalized Method of Moment is implemented to analyse the factors affecting inclusive growth. The findings show that ASEAN 5 economic growth in the respective period is not considered inclusive since the growth does not reduce the poverty and the gap and does not increase the employment opportunity either. The result also indicates that the inclusive growth is not consistent phenomena in ASEAN 5. Per capita income, government investment, and school participation score has a significant influence towards the growth inclusivity to reduce poverty. Whereas inflation, the number of population and the society gap has significant negative influence towards the growth inclusivity in reducing the poverty in ASEAN 5.
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