Construction workers helping Malaysia become a developed nation
Summary
11 June 2010
Malaysia's prime minister, Najib Abdul Razak, has set out a five-year plan to 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.
Reporter:
Jennifer Pak
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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.
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Vocabulary
- to keep the price of food staples and energy artificially low
to keep the cost of basic food supplies (rice, potatoes, corn 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 wealth
belief in and promise to share wealth between rich people and poor people
