BBC Learning English
Words in the News
11th June 2010
New Malaysian economic plan
Malaysia's prime minister, Najib Abdul Razak, has set out a five-year plan which will cut
down its massive debt. He says the economy needs to grow steadily so that it can reach its
goal of becoming a developed nation by 2020. Jennifer Pak reports from Kuala Lumpur:
Malaysians have enjoyed cheap sugar and petrol for decades. The government spent around
ten billion dollars last year to keep the price of food staples and energy artificially low.
These subsidies have been blamed for sustaining Malaysia's high budget deficit. Nor
Mohamed Yakcop is in charge of drafting the five-year economic plan. He said the subsidies
will be gradually reduced over five years to save costs.
Nor Mohamed Yakcop:
"The way the subsidies work now, even those who don't need it get the same assistance. So
we will target it to the needy and to the poor."
But the five-year plan doesn't address the more controversial aspects of an affirmative action
policy. It gives special privileges to the Malay majority in housing, education and government
jobs.
Analysts say the policy distorts the market and makes Malaysia less competitive. But the
prime minister said the policy needs to be revamped rather than scrapped. He repeated his
commitment to redistributing wealth into the hands of the Malays, who remain among the
poorest in the country.
Jennifer Pak, BBC News, Kuala Lumpur
Words in the News © British Broadcasting Corporation 2010
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Vocabulary and definitions
to keep the price of food staples to keep the cost of basic food supplies (rice, potatoes, corn
and energy artificially low etc.), electricity and gas lower than they would be at
normal market prices
subsidies money from a government or authority to help an industry,
(such as farming), or to provide cheaper goods for the
public  in this case, food and energy
high budget deficit when a very large amount of money is spent and is more
than the money received
assistance help or support
an affirmative action policy a government set of ideas or plan to help people who are
often discriminated against (women, gay people, people
from particular ethnic minorities, or particular religions) to
get jobs, better pay, improved living conditions etc.
distorts the market changes the prices (in a negative way) that goods and
services can be sold at
revamped changed again so that it will be improved
scrapped stopped being used
commitment to redistributing belief in and promise to share wealth between rich people
wealth and poor people
More on this story:
http://news.bbc.co.uk/1/hi/business/5020794.stm
Read and listen to the story and the vocabulary online:
http://www.bbc.co.uk/worldservice/learningenglish/language/wordsinthenews/2010/06/100611_witn_malaysia.shtml
Words in the News © British Broadcasting Corporation 2010
Page 2 of 2
bbclearningenglish.com