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COUNTRY PROFILE: MALAYSIA 

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September 2006 

COUNTRY 

Formal Name: Malaysia. 

Short Form: Malaysia. 

Term for Citizen(s): Malaysian(s). 

Capital: Since 1999 Putrajaya (25 kilometers south of Kuala Lumpur) 

has been the administrative capital and seat of government. Parliament 

still meets in Kuala Lumpur, but most ministries are located in Putrajaya. 

Major Cities: Kuala Lumpur is the only city with a population greater than 1 million persons 

(1,305,792 according to the most recent census in 2000). Other major cities include Johor Bahru 

(642,944), Ipoh (536,832), and Klang (626,699). 

Independence: Peninsular Malaysia attained independence as the Federation of Malaya on 

August 31, 1957. Later, two states on the island of Borneo—Sabah and Sarawak—joined the 

federation to form Malaysia on September 16, 1963. 

Public Holidays: Many public holidays are observed only in particular states, and the dates of 

Hindu and Islamic holidays vary because they are based on lunar calendars. The following 

holidays are observed nationwide: Hari Raya Haji (Feast of the Sacrifice, movable date); Chinese 

New Year (movable set of three days in January and February); Muharram (Islamic New Year, 

movable date); Mouloud (Prophet Muhammad’s Birthday, movable date); Labour Day (May 1); 

Vesak Day (movable date in May); Official Birthday of His Majesty the Yang di-Pertuan Agong 

(June 5); National Day (August 31); Deepavali (Diwali, movable set of five days in October and 

November); Hari Raya Puasa (end of Ramadan, movable date); and Christmas Day (December 

25). 

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Flag: Fourteen alternating red and white horizontal stripes of equal width, 

representing equal membership in the Federation of Malaysia, which is 

composed of 13 states and the federal government. In the upper left quadrant, 

a yellow crescent and star, which represent Islam, are centered in a solid blue 

rectangle. 

HISTORICAL BACKGROUND 

Early History to the Fourteenth Century: Little is known about Malaysia’s early history, but 

historians believe that as early as the first few centuries A.D. trade on the Strait of Malacca 
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helped to create economic and cultural links among China, India, and the Middle East. Among 

the most powerful and enduring early kingdoms was Srivijaya, which ruled much of Peninsular 

Malaysia from the seventh to the fourteenth century with support from China and the Orang Laut 

(“men of the sea”) who originated from Peninsular Malaysia and were perhaps the region’s best 

sailors and fighters. By the fourteenth century, Srivijaya’s dominance had ended because it lost 

Chinese support and because it was continually in conflict with states seeking to dominate 

lucrative trade routes. As for the other region of Malaysia, Borneo, evidence suggests that 

Borneo developed quite separately from the peninsula and was little affected by cultural and 

political developments there. The kingdom of Brunei was Borneo’s most prominent political 

force and remained so until nineteenth-century British colonization. 

The Malacca Sultanate and the Evolution of Malay Identity: The commencement of the 

current Malay nation is often traced to the fifteenth-century establishment of Malacca (Melaka) 

on the peninsula’s west coast. Malacca’s founding is credited to the Srivijayan prince Sri 

Paramesvara, who fled his kingdom to avoid domination by rulers of the Majapahit kingdom. By 

the late fourteenth century, Malacca had become an important commercial power and cultural 

influence along the Strait of Malacca, largely as a result of its numerous advantages as a trading 

port and its commercial and military alliances with China and the Malay kingdom of Bintan, an 

island near Singapore and home of the Orang Laut. When Muzaffar Shah became Malacca’s 

ruler in 1444, he declared the kingdom a Muslim state, and Malacca’s growing commercial, 

military, and political influence helped spread the Islamic faith throughout the region. 

European Intrusion and the Fall of Malacca: Near the beginning of the sixteenth century, 

European powers became interested in Malacca’s trade and the opportunity to spread Christianity 

in Asia. In 1511 Portugal conquered Malacca, but Portuguese efforts to establish a trade 

monopoly were thwarted by military raids conducted by Malacca’s ruler Mahmud Shah and by 

his sons’ kingdoms, particularly Johor. Throughout the sixteenth century, Portugal, Johor, and 

Aceh (in Indonesia) variously fought and allied with one another in order to establish a trade 

monopoly in the region. By 1641, the Dutch had entered the fray, and an alliance with Johor 

helped the Dutch defeat the Portuguese and assume control of Malacca. 

The Malay States to the End of the Eighteenth Century: In the eighteenth century, various 

struggles for political and economic influence fragmented authority in the Malay world, so that 

conflict and instability were the norm. In the peninsula’s western areas, two groups that had 

migrated to the peninsula for centuries, the Buginese and the Minangkabau, often fought each 

other. By 1740 the victorious Buginese ruled many peninsular states and continued to do so until 

they were defeated by an alliance of Johor and the Dutch in 1784. In eastern areas of the 

peninsula, Thai kingdoms often fought with and ruled Malay kingdoms from the sixteenth to the 

eighteenth centuries. Furthermore, Malay waters become some of the most dangerous in the 

world. Dutch monopolistic trade practices encouraged substantial black-market trade, and idle 

anak raja (sons of rulers) supported piracy as a means of income and recreation suitable to their 

elite status. Similarly, in Borneo piracy and slave raids supported by foreign powers were 

common. Piracy even forced the British East India Company to abandon two island settlements 

(in 1775 and 1776) off the coast of Borneo. 
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The British Colonial Presence: The British presence was minimal in the Malay world until 

1785, when a former British naval officer and private trader, Francis Light, acquired for the 

British a grant to the island of Penang from the sultan of Kedah. In 1786 Light established the 

settlement of George Town on Penang, and within a few years the island’s free-trade policy 

helped it eclipse Malacca as the peninsula’s premier trade center. The British presence on the 

Malay Peninsula expanded in 1819 when Thomas Stanford Raffles, a British East India 

Company official, and Tunku Hussain, a contender for the throne of Malacca, agreed that the 

British could settle in Singapore in exchange for formal recognition of Hussain as Malacca’s 

sultan. Singapore soon became an astonishing financial success because of its advantageous 

geographic location and its free-trade policies. 

British influence expanded further with the Anglo-Dutch Treaty of 1824, which effectively split 

the Malay world into territories that would become Indonesia and Malaysia. By 1826 the British 

had joined the peninsular territories of Malacca, Penang, Perai (then known as Province 

Wellesley), Dindings (now part of the state of Perak), and Singapore under a single 

administration called the “Straits Settlements.” 

Federated and Unfederated Malay States: The British were reluctant to acquire other 

commitments in the region, but periodic forays by Siam (now Thailand) into north Malay states, 

piracy supported by Malay rulers, and periodic conflicts between Malay rulers of tin-producing 

states and Chinese tin miners mobilized by Chinese secret societies all threatened British 

commercial interests and prompted the British to become increasingly involved in peninsular 

affairs. In the 1870s, the British adopted a system of indirect rule over Malay states that 

furnished the beginnings of a centralized state. In 1874 the British agreed to recognize and 

support a contender as the sultan of Pangkor in exchange for the sultan’s acceptance of a British 

representative, or “resident,” whose advice would be sought and followed on all issues except 

Malay custom and religion. British residents were later established in three other tin-producing 

states, which became known as “protected states.” In 1896 the Malay rulers of these states and 

Pangkor signed the Treaty of Federation, which established the Federated Malay States. Malay 

rulers were invited to provide input into the federation’s development, but in reality the new 

constitutional arrangements were designed to provide an appearance of Malay rule while 

effectively reducing traditional rulers to mere decorous bystanders. 

A different governing arrangement was established with other Malay states that were more 

independent of British control than the Federated Malay States. Siam tenuously controlled the 

northern states of Kedah, Terengganu, Kelantan, and Perlis until a 1909 treaty between Britain 

and Siam placed those states under British influence. The sultans of these states refused to join 

the federation, but they did accept British advisers. Unlike residents, the advisers had no 

effective executive power and relied on diplomacy with the sultans for policy matters. The 

southern state of Johor also remained relatively independent of British influence until 1909, 

when the sultan accepted a British “financial adviser” with wide-ranging powers. Thus, by 1914 

the Malay Peninsula was composed of 10 political entities: the Straits Settlements, four 

Federated Malay States, and five Unfederated Malay States. 

Borneo in the Nineteenth Century: From the sixteenth to the early nineteenth centuries, 

developments in Borneo were generally separate from those on the peninsula, partly because of 
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more limited European involvement in Borneo. That situation changed in 1839 when James 

Brooke, an independently wealthy former British East India Company officer, arrived in Borneo 

and helped the sultan of Brunei to emerge victorious in a power struggle with other Brunei elites. 

In return, the sultan allowed Brooke to govern a territory (called Sarawak) in exchange for small 

annual payments. Through good relations and payments to the Brunei sultan, Brooke and his 

descendents expanded Sarawak’s territory and governed with substantial autonomy from Britain. 

Eventually, the British government became concerned that Sarawak’s growth could destabilize 

Brunei and render Borneo vulnerable to seizure by rival powers. In 1888 the British agreed to 

provide protection to Sarawak, Brunei, and the British North Borneo Company (which 

administered the territory of Sabah) in exchange for control over their foreign policy. This 

contributed to the consolidation of northern Borneo and its separation from the island’s southern 

areas, which were governed by the Dutch. 

Early Twentieth Century: By the late nineteenth century, stable forms of government had 

emerged in Malaysia, and its economy and culture began to assume characteristics that would 

endure for decades. In the late 1800s, copious deposits of tin ore were discovered in the 

northwestern state of Perak, and this led to substantial growth in mining and the creation of 

administrative and transportation infrastructure to service the tin industry, which in turn enabled 

the growth of other industries along the west coast, such as rubber plantations. This early export 

diversification helped the economy respond to changing international prices for primary 

commodities and generally aided economic growth. 

In addition, an ethnic Malay identity began to emerge in this period. Although ethnic Malays 

shared a common religion in Islam and a common language in Malay, their social identities were 

often localized to their respective states, and their political loyalties were generally to their 

respective sultans. By contrast, the Chinese and Indians in Malaysia often occupied particular 

economic niches, which helped instill in them more distinct and salient ethnic identities. This 

situation began to change in the early 1900s with the emergence of Malay cultural organizations 

and publications. These entities had numerous political differences but generally claimed that 

Malays share a common ethnicity and thus promoted the emergence of the Malay nation. 

War, Emergency, and Independence: Japanese forces attacked Singapore on December 10, 

1941, and by February 15, 1942, the Japanese occupied the Malay Peninsula and Singapore. 

Under Japanese occupation, ethnic tensions between Malays and Chinese crystallized because 

Malays filled many administrative positions while the Chinese were treated harshly for their 

resistance activities and for supporting China’s war of resistance against the Japanese in the 

1930s. When the British resumed control in 1945, they sought to establish themselves as a 

durable administrative power, and ethnic tensions often influenced political arrangements. In 

January 1946, the British proposed the Malayan Union plan, which would make Singapore one 

colony and create another colony from the previously separate Federated and Unfederated Malay 

States, Penang, and Malacca. Naturalization requirements would be eased for non-Malays. But 

fearing that they would become a minority group in the new state, many ethnic Malays opposed 

this plan, including Malaysia’s first political party, the United Malays National Organization 

(UMNO), which was formed in March 1946. Despite Malay opposition, the British implemented 

the Malayan Union on April 1, 1946, but they soon considered amending it because its support 

by the largely ethnic Chinese Communist Party of Malaya (CPM) led to fears of potential 
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communist influence. In May 1947, the British proposed maintaining the same territorial 

arrangement but as a majority-Malay federation that would have greater autonomy on matters 

such as Malay customs and religion. Ethnic Chinese and Indians were uneasy about living under 

an ethnic Malay majority, and left-wing Malay and Chinese groups organized strikes against the 

new proposal. However, the Federation of Malaya Agreement was implemented on February 1, 

1948. 

Civil conflict soon followed, and the British government declared a state of emergency on June 

18, 1948. The CPM’s armed division, the Malayan Races Liberation Army (MRLA), engaged in 

a rural insurgency, but the insurgents were poorly organized and had little success after 1951. 

The British were able to undermine MRLA support by moving ethnic Chinese out of rural 

squatter areas and into government-controlled “New Villages” that were equipped with better 

health and educational facilities than in squatter areas. The MRLA was eventually forced into 

areas bordering Thailand, and by 1960 the “Emergency” was formally declared at an end. 

The Alliance and Independence: In the 1948 Federation of Malaya Agreement, the British 

agreed to grant eventual self-rule, but ethnic tensions were a major obstacle to doing so. The 

British tried to promote national unity among different ethnic groups by encouraging dialogue 

among noncommunist ethnic leaders, but the eventual consensus was that Malays would only 

share political power with non-Malays if non-Malays helped improve Malays’ economic status. 

The details to implement this plan remained elusive, and the groups engaged in discussions were 

largely ethnically based: UMNO, the Malaysian Chinese Association (MCA), and the Malayan 

Indian Congress (MIC). However, from 1952 to 1955 UMNO, the MCA, and the MIC 

established a partnership called the “Alliance” that won municipal, local, and federal elections 

and thus emerged as an agent for unified Malayan interests. By October 1956, a Constitutional 

Commission had produced a document that included numerous compromises to satisfy the 

various ethnic, religious, and linguistic concerns of Malaya’s diverse population. For example, 

Malay was proclaimed the national language, but English would continue as a national language 

for at least 10 years. Islam became the official state religion, but religious freedom for all 

religious groups was guaranteed. Malays retained various special privileges, but non-Malay 

rights could not be hindered by prejudicial legislation or governmental intervention. On August 

15, 1957, the Federal Legislature ratified the document, and on August 31, 1957, Malaya became 

an independent country. 

The Creation of Malaysia: Singapore requested inclusion in the Federation of Malaya in 1957 

and again in 1959, but Malay leaders were uneasy about Singapore’s leftist politics and feared 

that the addition of Singapore would make Malaya a majority-Chinese state. In order to 

overcome such concerns, Singapore and Malaya met with the British and proposed an 

association that would include Brunei, Malaya, North Borneo (Sabah), Sarawak, and Singapore. 

The proposal generally neutralized Malay opposition because the projected federation’s states 

would all have indigenous majorities, but some groups in North Borneo, Sarawak, and Singapore 

opposed this proposal. Nevertheless, in 1962 and 1963 pro-merger political parties won elections 

in all of these territories. The 1957 constitution was amended to include numerous compromises 

among the states, and on September 16, 1963, the Federation of Malaysia came into existence. 

Brunei’s sultan, however, opted to remain independent since he was reluctant to be only one of 

10 Malay rulers or to share Brunei’s oil revenues. 
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External Threats: “Confrontation” and the Philippine Claim to Sabah: Newly independent 

Malaysia was soon faced with external threats from Indonesia and the Philippines. The 

Indonesian government led by Sukarno contended that the new federation was a neocolonialist 

plan to prevent Indonesia and Malaysia from combining into a Greater Malaysia, an entity that 

Malaysian leaders had previously supported. Soon after the Federation of Malaysia was 

established, Indonesia attempted to spark a popular revolt in the fledgling country by engaging in 

acts of terrorism and armed confrontation in various places. However, these actions strengthened 

popular support for Malaysia, and in 1964 Australia, Britain, and New Zealand sent troops and 

military aid to Malaysia. An abortive coup attempt in 1965 forced Sukarno to step down, and on 

August 11, 1966, Indonesia and Malaysia signed a peace treaty. The Philippines’ differences 

with Malaysia did not involve organized violence but were longer lasting. A legally complex 

territorial dispute over Sabah led to the occasional suspension of diplomatic relations between 

1963 and 1968, although relations were restored in December 1969. Relations were later strained 

as Sabah’s chief minister allowed Muslim insurgents from the Philippines to use Sabah as a 

haven until he lost an election in April 1976. 

The Secession of Singapore: Malaysia’s independence was also followed by difficulties with 

Singapore. Under the terms of federation, Singapore accepted underrepresentation in the House 

of Representatives and also accepted that its residents could not participate as full citizens in 

Malaysia without fulfilling stringent naturalization requirements. Singapore’s chief minister Lee 

Kwan-Yew was, however, critical of Malays’ special status, and Malays perceived Lee’s efforts 

to reduce their special status as an attack on Malay rights and on the country’s racial harmony. In 

August 1965, officials from the federal government and Singapore held secret meetings to 

arrange for Singapore’s peaceful withdrawal from Malaysia, and Singapore became independent 

on August 6, 1965. 

The Kuala Lumpur Riots of May 1969 and Their Aftermath: After the separation of 

Singapore and Malaysia, ethnic issues continued to simmer between Malays and Chinese. In the 

elections of May 1969, the Alliance was opposed by the Democratic Action Party, which had a 

predominantly Chinese following and advocated the abolition of Malays’ special status. After a 

bitter campaign between the two sides, the Alliance maintained power but lost a significant share 

of the total vote. Opposition party supporters held public demonstrations to celebrate their 

election gains, and violence broke out between opposition supporters and Malay bystanders. 

Riots ensued for two weeks, mostly in Kuala Lumpur, and resulted in hundreds of casualties, 

primarily Chinese and Indians. The government declared a state of emergency and ultimately 

passed laws against questioning governing institutions and Malays’ special status. 

In 1972 UMNO created a partnership with the Pan-Malaysia Islamic Party (PAS) to reduce intraMalay political differences and also renewed ties with the MCA, which had left the Alliance 

prior to the Kuala Lumpur riots. This broader, interracial coalition changed its moniker to the 

National Front (Barisan Nasional—BN) and won large majorities in the 1974 federal and state 

elections. Throughout the 1970s and 1980s, BN administrations succeeded in increasing the 

power of the federal government relative to the state governments, often by forcing out of office 

independent-minded state chief ministers who were perceived as presenting a threat to national 

unity and ethnic accord. The BN also promoted educational policies designed for ethnic Malays 

and adopted aggressive measures to address economic inequalities experienced by Malays. 
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Mahathir and the Growth of Malaysia: In 1981 Mahathir Mohamad became prime minister, 

which caused concern among ethnic Chinese and Indians in Malaysia who regarded him as 

interested in promoting Malay status at the expense of other ethnic groups. However, Mahathir’s 

early years in office were marked primarily by attempts to prevent official corruption and by 

success in increasing the power of elected officials relative to Malay rulers. Mahathir also 

ambitiously pursued economic reforms, such as orienting the economy toward the production of 

export goods, promoting joint ventures with Asian firms, and privatizing many state industries, 

which often were taken over by ethnic Malay-controlled corporations. 

Mahathir’s economic and other policies were subject to widespread criticism, which occasionally 

led to contentious divisions within UMNO. He was often viewed as uncompromising and highly 

aggressive in the pursuit of his policies, yet throughout the 1980s he led UMNO and the BN to 

successive election victories. Heightened criticisms of Mahathir coincided with rising ethnic 

tensions over religion, Chinese-language education, and other issues. Claiming to preempt 

violent ethnic riots, in 1987 Mahathir ordered a crackdown on critics of government policies, and 

police arrested more than 100 individuals—including politicians—and closed three newspapers. 

The detainees were later released, but the government introduced numerous restrictions on civil 

liberties, such as making the dissemination of “false” news illegal. 

In the 1990s, UMNO and the BN continued their impressive streak of election victories, and 

Mahathir’s influence continued to grow. However, by the late 1990s long-simmering tensions 

between Mahathir and Minister of Finance Anwar Ibrahim led to one of Malaysia’s most 

controversial political episodes. In 1993 Anwar won UMNO’s internal election for deputy 

president against Mahathir’s close ally Ghafar Baba and thus became Malaysia’s deputy prime 

minister and, in the eyes of some observers, a potential rival to Mahathir. In May 1997, Mahathir 

took a two-month leave of absence and appointed Anwar acting prime minister. In July 1997, 

many Asian countries were plunged into an economic crisis, and Mahathir severely criticized 

international investors for precipitating the crisis. By contrast, Anwar gained political favor by 

attempting to reassure investors with various free-market reforms, many of which financially 

threatened banks and infrastructure projects favored by Mahathir and some of his associates. In 

1998 Anwar was arrested and eventually prosecuted for alleged sodomy and corruption, although 

many observers suggested that these developments were politically motivated. In 2004 the 

sodomy charged was overturned, and Anwar was released from prison. 

In January 1999, Mahathir engaged in a major reshuffling of his cabinet, and the most significant 

change was that Abdullah Ahmad Badawi was appointed as deputy prime minister and minister 

for home affairs. In November 1999, the BN coalition won a decisive victory in national 

elections. The following month, Mahathir announced that he would not run again for office and 

officially declared Abdullah as his chosen successor. Mahathir retired in October 2003 and was 

succeeded by Abdullah, who subsequently pursued policies that were often at odds with 

Mahathir’s previous policies. Whereas Mahathir was criticized for corruption and cronyism, 

Abdullah has engaged in substantial anticorruption efforts and terminated many governmentfunded projects that were administered by Mahathir’s associates. These changes and continuing 

ethnic tensions led many to question how long Abdullah would be politically influential, but the 

BN coalition won general elections held in March 2004, and Abdullah was elected as UMNO 
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party president. Furthermore, Abdullah has continued Malaysia’s impressive emergence from the 

1997 economic crisis and its economic growth. 

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GEOGRAPHY 

Location: Malaysia is located in Southeast Asia. Most of it land 

area is contained in two noncontiguous regions separated by about 

530 kilometers of the South China Sea. One region is Peninsular 

Malaysia, which is bordered by Thailand to the north, the Strait 

of Malacca to the west, the Johore Strait to the south, and the 

South China Sea to the east. The other region, sometimes called 

East Malaysia, is the northern portion of the island of Borneo that is composed of two states, 

Sabah and Sarawak. The Kingdom of Brunei and the Indonesian territory of Kalimantan make up 

the rest of Borneo. Malaysia also encompasses many small islands, the largest of which is 

Labuan, off the coast of Sabah. 

Size: Malaysia’s total land area is 329,758 square kilometers: 131,598 square kilometers in 

Peninsular Malaysia and 198,160 square kilometers in Sabah and Sarawak. 

Land Boundaries: Malaysia’s land boundaries total 2,669 kilometers. There is one land 

boundary on the peninsula, a 506-kilometer border with Thailand. On Borneo, Malaysia has a 

381-kilometer border with Brunei and a 1,782-kilometer border with Indonesia. 

Disputed Territory: Malaysia has several territorial disputes with other countries, but none have 

resulted in military conflict. Malaysia disputes sovereignty over the possibly oil-rich Spratly 

Islands with Brunei, China, the Philippines, Taiwan, and Vietnam. The Philippines previously 

claimed the state of Sabah, and Indonesia has disputed Malaysia’s incorporation of Sarawak. 

However, both claims appear dormant. Indonesia and the Philippines claim the Ligitan and 

Sipadan Islands, which the International Court of Justice (ICJ) awarded to Malaysia in 2002. 

However, the ICJ left those islands’ maritime boundaries in the hydrocarbon-rich 

Celebes/Sulawesi Sea unsettled, and thus the countries still have overlapping claims to petroleum 

resources located in the seabed. Brunei and Malaysia both claim offshore seabeds, so the dispute 

has terminated gas and oil exploration in the area. Finally, Malaysia has disputed Singapore’s 

land reclamation, bridge construction, maritime boundaries, and claim to Pedra Branca Island 

(Pulau Batu Putih), approximately 15 kilometers off the southern coast of the state of Johor. 

However, in 1998 the two countries agreed to future ICJ arbitration on the island dispute, and 

observers expect the case will be heard in 2007. 

Length of Coastline: Malaysia’s total coastline is 4,675 kilometers in length: 2,068 kilometers 

for Peninsular Malaysia and 2,607 kilometers for East Malaysia. 

Topography: The topography of Peninsular Malaysia, Sabah, and Sarawak is generally coastal 

plains with hills and mountains in the interior. Malaysia’s lowest elevation is sea level along the 

coasts, and the highest is Gunung Kinabalu in northern Sabah at 4,100 meters. In 2005 forests 

covered approximately 64 percent of the country’s total land area. 
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Principal Rivers: Malaysia’s principal rivers are the Kinabatangan (564 kilometers in length), 

Rajang (560 kilometers), Pahang (434 kilometers), Baram (400 kilometers), Lupar (230 

kilometers), and Limbang (196 kilometers). 

Climate: Peninsular Malaysia and East Malaysia, both just north of the equator, are subject to 

the same movement of air masses and have similar climates. Temperatures and precipitation vary 

by elevation and proximity to the sea, but temperatures tend to be uniform year-round with 

annual average temperatures ranging from 23o C to 34o C. Rainfall is heavy with annual 

southwest monsoons from April to October and northeast monsoons from October to February. 

Total annual rainfall ranges from 1,300 to 4,700 millimeters in East Malaysia and from 1,400 to 

4,000 millimeters on the peninsula. Humidity is also high; mean relative humidity ranges from 

80 to 90 percent. 

Natural Resources: Malaysia’s most economically significant natural resource is tin; its tin 

deposits are the most extensive in the world. Other important natural resources are bauxite, 

copper, gold, iron ore, natural gas, petroleum, and timber. 

Land Use: According to an estimate from 2001, 5.5 percent of Malaysia’s land is categorized as 

arable, 17.6 percent is covered by permanent crops, and the remaining 76.9 percent categorized 

as “other.” Cleared land exists only in major settlement areas along the coast or on the banks of 

rivers for differing distances inland. Much cleared land has been used for palm and rubber tree 

plantations. 

Environmental Factors: Malaysia faces many natural hazards, particularly flooding, landslides, 

and forest fires. Human-induced transformation of the environment is often regarded as more 

problematic than natural disasters but less so than in other Asian countries. Automobile 

emissions are Malaysia’s major source of air pollution, but air quality indicators for Malaysian 

cities tend to indicate cleaner air than in most other Asian cities. Livestock farming, domestic 

sewage, and landclearing have contributed to river pollution, but government documents do not 

suggest that river pollution is widespread or acutely problematic. Oil and grease have polluted 

coastal waters in all states and groundwater in some areas, and rates of deforestation increased 

from 0.4 percent annually during the 1990s to 0.7 percent annually from 2000 to 2005. 

Time Zone: Malaysia is eight hours ahead of Greenwich Mean Time (GMT). 

SOCIETY 

Population: From 1960 to the most recent census in 2000, the total population grew from an 

estimated 8 million to 23.3 million persons. The annual population growth rate averaged 2.6 

percent for that period, gradually declining to 1.8 percent for 2005–6. Government figures for the 

first quarter of 2006 put the total population at 26.5 million. In 2000 the state with the highest 

population was Selangor (4.2 million), and Labuan had the lowest population (76,067). Total 

population figures include approximately 1.4 million non-Malaysian citizens, who comprised 5.9 

percent of the total population in 2000. From 1960 to 2000, population density grew from 24 to 

71 persons per square kilometer. In 2000 population density was lowest in the state of Sarawak 
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(17 persons per square kilometer) and highest in the federal region of Kuala Lumpur (5,676 

persons per square kilometer). From 1960 to 2000, the percentage of the population residing in 

urban areas increased from 25 to 62 percent. 

Demography: According to the 2000 census, 50.9 percent of the population was male and 49.1 

percent female. Furthermore, 33.3 percent of the population was less than 15 years of age, 62.8 

percent was 15 to 59 years of age, and 3.9 percent was 65 years of age or older. According to 

government data, from 1980 to 2005 life expectancy at birth increased from 66.4 to 71.8 years 

for males and from 70.5 to 76.2 years for females. During the same period, the crude birthrate 

fell from 30.9 to 19.6 births per 1,000 persons, the crude death rate fell from 5.3 to 4.4 deaths per 

1,000 persons, and the infant mortality rate fell from approximately 23.9 to 5.1 deaths under one 

year of age per 1,000 live births. However, these figures often vary among ethnic groups. 

Ethnic Groups: According to the 2000 census, 50.2 percent of the population is Malay, 24.5 

percent Chinese, 11 percent indigenous, 7.2 percent Indian, and 1.2 percent members of other 

ethnic groups. Non-Malaysian citizens make up the remaining 5.9 percent. These groups often 

can be divided by language, tribe, and other categories. Since independence, a common national 

identity has solidified, but ethnic divisions remain apparent in many aspects of daily life. Malays 

and indigenous groups often refer to themselves as bumiputra (“sons of the soil”), and ethnicity 

is associated with differences in politics, residence, socioeconomic position, and daily customs. 

The government has affirmative-action policies designed to promote social harmony, but critics 

claim such policies unfairly favor ethnic Malays over other groups. 

Languages: Bahasa Melayu is the official language. Other commonly spoken languages include 

English, Tamil, Telugu, Malayalam, Panjabi, Thai, and various dialects of Chinese (Cantonese, 

Mandarin, Hokkien, Hakka, and Hainan). In Eastern Malaysia, several indigenous languages are 

spoken, but Iban and Kadazan are the most prominent. The Malaysian census does not maintain 

data for the population of linguistic groups, but language and ethnicity are strongly associated. 

Religion: Islam is the official religion, but freedom of religion is constitutionally guaranteed. 

According to government statistics, in 2000 approximately 60.4 percent of the population was 

Muslim, and Muslims were the highest percentage in every state except Sarawak, which was 

42.6 percent Christian. Buddhism was the second most adhered to faith, claiming 19.2 percent of 

the population, and Buddhists constituted at least 20 percent of the total population in many 

states of Peninsular Malaysia. Of the remaining population, 9.1 percent was Christian; 6.3 

percent Hindu; 2.6 Confucian, Taoist, and other Chinese faiths; 0.8 percent practitioners of tribal 

and folk religions; and 0.4 percent adherents of other faiths. Another 0.8 percent professed no 

faith, and the religious affiliation of 0.4 percent was listed as unknown. Religious issues have 

been politically divisive, particularly as non-Muslims opposed attempts to institute Islamic law 

in states such as Terengganu in 2003. 

Education and Literacy: From 1991 to 2000, the literacy rate for persons aged 10 to 64 years of 

age increased from 88.6 percent to 93.5 percent. Government-assisted schools provide free 

education for children between ages six and 18, but only primary education (ages six to 12) is 

compulsory. In 2003 Malaysia operated 7,498 primary schools and 1,916 secondary schools and 

also funded specialized schools for religious education and special education. Primary education 
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starts at age six, secondary education at age 12, and students may attend vocational or technical 

schools in lieu of the final four years of secondary education. Private schools receive no 

government funds but are subject to government regulation. 

Bahasa Malaysia is the principal language of instruction. Chinese and Tamil are used only in 

primary education. English is taught as a second language. In 1994 English-language instruction 

was introduced to promote multiethnic socialization and to improve science and mathematics 

education. By 2003 legislation required that all mathematics and science courses be taught in 

English. Educational policies frequently have contentious overtones, often because of perceived 

ethnic discrimination. 

Health: Health indicators and infrastructure have improved substantially since independence. 

Increasing deaths from heart disease, cancer, and diabetes suggest increasing health problems 

associated with high-income countries, but the country is also still affected by health problems 

that are more common in low-income countries. In 2004 the most common communicable 

diseases were dengue fever, malaria, measles, and tuberculosis. Human immunodeficiency virus 

(HIV) was among common communicable diseases, but figures vary as to its prevalence. 

According to United Nations data, approximately 51,000 persons aged 15 to 49 had HIV in 2003, 

and the HIV prevalence rate was 0.4 percent, lower than the 0.6 percent rate for South and 

Southeast Asia overall. 

These improvements are often attributed to improvements in public nutrition, sanitation, and 

access to health services. Health services at public hospitals are highly subsidized and free to 

persons who cannot afford the costs, but private expenditures account for more than half of total 

health spending. The Ministry of Health operates public health services, and from 2000 to 2004 

the ministry’s budget increased from approximately 6.3 percent to 8 percent of the national 

budget. In 2004 there were 1,969 public dental clinics, 1,924 rural clinics, 165 mobile clinics, 93 

maternity and child health clinics, 125 government hospitals, and 218 private hospitals and 

“maternity/nursing homes.” There were also 18,246 doctors, or one doctor for every 1,402 

persons. Health services are more available in urban than in rural areas, but Malaysia has been 

developing “telehealth” and “telemedicine” for rural populations. In an effort to overcome a 

dearth of medical personnel, the government has built an “information technology-based” 

hospital in which patient data are stored in a central database rather than in paper files so that 

doctors can spend more time with patients than on paperwork. 

Welfare: Observers often contend that the government has become very successful at managing 

social welfare and poverty reduction. Indeed, many development agencies have limited or ended 

their activities in Malaysia. The Department of Social Welfare administers 48 facilities that 

provide services for elderly persons, juvenile offenders, physically and mentally disabled 

persons, and others. The Social Security Organisation (SOCSO) administers social insurance, 

such as medical and disability benefits, for people—and their dependents—who are injured or 

killed in the course of employment. Available data suggest that from 1975 to 2002 the number of 

persons receiving social welfare services ranged from 4,000 to 6,000 persons annually, and that 

the number of persons receiving social insurance increased from 9,348 to 239,372. The 

Employee Provident Fund (EPF) provides retirement benefits derived from compulsory 
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contributions from employees and the government. From 1975 to 2002, the number of 

employees who contributed to the EPF increased from 2.9 million to 10.2 million. 

ECONOMY 

Overview: Since the 1970s, Malaysia has transformed itself from an economy dependent on raw 

materials production and with a largely poor population to a multisector economy with a middleincome population. These changes have been most evident in Peninsular Malaysia, but there 

have also been significant changes in East Malaysia. The industrial sector has been the primary 

source of economic growth since the 1980s, particularly the manufacturing of electronics for 

export. However, export dependence has exposed the economy to global market fluctuations and 

to economic changes in its top export destinations and key sources of foreign investment, such as 

Japan and the United States. Both government and independent economists contend that private 

consumption has led to growth in the services sector and boosted economic growth overall. From 

1997 to 2002, the country’s economy declined for many reasons, but it has rebounded because of 

government policies such as fiscal stimulus packages, healthy foreign exchange reserves, low 

inflation, and low external debt. 

Gross Domestic Product (GDP)/Power Purchasing Parity (PPP): Statistics vary but often 

suggest similar trends with GDP and PPP. According to the World Bank, from 1975 to 2004 the 

GDP (in current US$) grew from US$9.9 billion to US$118.3 billion, averaging 6.4 percent 

annual growth. Government figures put the 2005 GDP at US$130.1 billion. From 1975 to 2004, 

PPP (in current international dollars) grew from US$13.8 billion to US$255.8 billion, and GDP 

per capita expressed as PPP per capita (in current international dollars) grew from US$1,130 to 

US$9,630. According to the Malaysian government, the agricultural sector provided 8.7 percent 

of the GDP in 2005, industry provided 48.8 percent, and services provided 46.3 percent (these 

figures do not total 100 percent because import duties and imputed bank service charges are also 

factored into calculations of GDP by sector). 

Government Budget: In fiscal year (FY) 2005, government revenues totaled US$30.6 billion, 

and expenditures were US$34.6 billion, including US$9.4 billion in capital expenditures. The 

government’s budget deficit was estimated to be 3.8 percent of gross domestic product (GDP), 

down from 5.6 percent in FY2002. Public debt was 48.3 percent of GDP. 

Inflation: According to World Bank figures, inflation (in terms of consumer prices) averaged 

nearly 3.6 percent annually from 1975 to 2004 but was 3.0 percent each year from 2000 to 2004. 

Since 2000 inflation has resulted largely from fiscal policies, such as reduced government 

subsidies for fuel and higher taxes on cigarettes and liquor. 

Agriculture, Forestry, and Fishing: Agriculture, forestry, and fishing have not declined in 

terms of productive output but have declined as a proportion of economic output. From 1980 to 

2005, the percentage of the gross domestic product (GDP) provided by agriculture declined from 

22.6 percent to approximately 8.7 percent. In the same time period, the percentage of the total 

labor force employed in agriculture fell from 37.2 percent to approximately 13.1 percent. Despite 

these declines, Malaysia is the world’s top producer of palm oil and is a major producer of 
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bananas, cocoa, coconuts, pepper, pineapples, rice, rubber, and tea. In statistics, forestry and 

fishing often are categorized as agriculture. At one time, Malaysia was the world’s largest 

exporter of tropical hardwoods, but sustainable management policies have reduced timber 

exports. Log production was 19.1 million cubic meters in 1975, peaked at 40.1 million cubic 

meters in 1990, and declined to 20.6 million cubic meters by 2002. Fishing accounted for 13.4 

percent of the value of agricultural output in 2000 but declined to 11.8 percent by 2006; the 

government has invested in aquaculture to improve the output of the fishing industry. 

Mining and Minerals: Malaysia is the world’s leading tin producer and an important producer 

of other nonenergy minerals including bauxite, coal, copper, gold, and iron. However, mining 

has declined in its contribution to the economy and labor force. From 1980 to 2005, the 

percentage of the labor force employed in mining and quarrying fell from 1.6 percent to an 

estimated 0.4 percent, and as a percentage of gross domestic product mining and quarrying 

declined from 10.1 percent to 6.7 percent. 

Industry and Manufacturing: The industrial sector arguably is Malaysia’s most important 

economic sector, particularly the manufacturing subsector. According to government and World 

Bank data, from 1980 to 2005 the industrial sector’s share of total employment increased from 

24.1 percent to 36.1 percent, and its share of gross domestic product (GDP) increased from 41 

percent to 48.8 percent in the same time period. When industry is disaggregated into subsectors, 

manufacturing’s share of total employment increased from 15.7 percent to 28.4 percent, while 

mining and construction decreased from 8.4 percent to 7.7 percent of total employment in the 

same period. Furthermore, from 1980 to 2005 manufacturing increased from 21.5 percent of 

GDP to 31.5 percent, while mining and construction declined from 19.5 percent of GDP to 9.4 

percent. High-technology exports have accounted for much of industrial growth. Other important 

industries are chemical products, light manufacturing, logging and timber processing, petroleum 

production and refining, and rubber and plastic products. 

Energy: Energy production, consumption, and marketing have changed tremendously since the 

early 1970s. Historically, three state firms have dominated energy generation and distribution, 

but in 1994 the government allowed private producers into the market, and 15 independent 

producers were in operation by 2005. Still, all oil and gas resources are vested in state-owned 

Petroliam Nasional Berhad (Petronas). From 1971 to 2001, energy production increased from 

4,770 kilotons of oil equivalent (KTOE) to 77,623 KTOE, as energy use increased from 6,032 

KTOE to 51,608 KTOE. In the same period, oil sources fell from 72.4 percent of total electricity 

production to 8.6 percent, while natural gas increased from 0 percent to 78.1 percent. The 

remainder of electricity production in 2001 was provided by hydropower (9.9 percent) and coal 

(3.4 percent). Malaysia’s proven oil reserves declined from a peak of 4.3 billion barrels in 1996 

to 3.0 billion barrels in 2005, but the country has engaged in offshore development to increase oil 

production. Malaysia also has 75 trillion cubic feet of proven natural gas reserves, and liquefied 

natural gas production increased from 12.9 million tonnes in 1996 to 20.9 million tonnes in 2005, 

most of which is exported. In official statistics, employment in electricity and gas supply is 

combined with employment in water supply; from 1980 to 2005, these industries’ share of total 

employment increased from 15.7 percent to approximately 28.4 percent. 
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Services: The services sector is very important in terms of its contribution to the country’s gross 

domestic product (GDP) and overall employment. Service industries have grown primarily in 

response to industrial development but nevertheless are critical for the success of industry. 

According to government and World Bank data, the services sector increased from 36.3 percent 

of GDP in 1980 to 46.3 percent in 2005, and the proportion of the labor force employed in the 

services sector increased from 38.7 percent to 50.8 percent in the same period. In terms of value 

added, the most important service industries have been telecommunications, sea and air 

transport, hotels and other lodging, and financial services. 

Banking and Finance: The 1997 financial crisis hurt banking, but since that time the National 

Asset Management Agency and the Corporate Debt Restructuring Committee have resolved 

numerous bad loans and debts. Indeed, nonperforming loans were reduced from 8 percent of total 

loans in 1998 to 4.4 percent by April 2006. The government has tried to improve corporate 

transparency by requiring publicly listed companies to submit quarterly reports. The Bank 

Negara Malaysia (BNM, Central Bank of Malaysia) has authority over the banking system and 

monetary policy, and the BNM’s total assets grew from US$6.6 billion in 1985 to US$82.9 

billion by April 2006. As of April 2006, there were 10 merchant banks with US$5.5 billion in 

fixed deposits and 31 commercial banks with total deposits of US$120.8 billion. In addition, 

banks following Islamic banking procedures had a total of US$17.6 billion in deposits in April 

2006. As of 2004, 53 banks had offshore licenses in Labuan, off the cost of Sabah. The country 

has two stock exchanges, the Malaysia Derivatives Exchange (MDEX) and the Kuala Lumpur 

Stock Exchange (KLSE). In April 2006, the KLSE had 1,027 listed companies and a market 

capitalization of US$202.8 billion. 

Tourism: Tourism is the second largest source of foreign exchange, and the industry has grown 

consistently with the exception of a brief lull after the terrorist attack in Bali, Indonesia, in 

October 2002. From 1990 to 2005, tourist arrivals increased from 7.4 million to 16.7 million; 

more than half the tourists were from Singapore. From 1990 to 2005, tourist receipts increased 

from US$1.7 billion to US$8.4 billion per year. In 2003 the government announced the 

establishment of a US$105.3 million Special Tourism Fund to revive the tourism industry and a 

US$52.6 million Tourist Infrastructure Fund to build and upgrade tourist facilities and amenities. 

Labor: In 2005 the labor force participation rate was 66 percent of all persons aged 15 to 64 but 

higher for males (85.2 percent) than for females (45.8 percent). From 1980 to 2005, the labor 

force increased from 5.1 million to 10.9 million people. In the same time period, the official 

unemployment rate ranged from 3 percent to 8 percent; it was 3.5 percent in 2005. In 2005 the 

majority of the labor force worked in the industrial and services sectors (36.1 percent and 50.8 

percent, respectively) and the rest in the agricultural sector. In 2005 Malaysia had 617 trade 

unions with a total membership of 801,000. Legally, the normal workweek may not exceed 48 

hours, overtime pay is 1.5 times the hourly rate of pay, female employees receive 60 consecutive 

days of maternity leave, and, even with no general minimum wage, the government can 

designate minimum wages for particular industries. 

Foreign Economic Relations: Malaysia has been a member of the World Trade Organization 

since January 1, 1995. Major trading partners include China, Japan, and the United States, 

although Malaysia has pursued bilateral free-trade agreements with Australia, India, New 
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Zealand, Pakistan, and South Korea. Malaysia also has participated in regional free-trade and 

investment relations with many of the same countries through the Association of South East 

Asian Nations (ASEAN). The government’s only major trade dispute has been an objection to 

the U.S decision to ban imports of shrimp and shrimp products from Malaysia and other 

countries. This dispute commenced in 1996 and continued into 2006. 

Imports: Malaysia’s imports of goods and services (in current U.S. dollars) grew steadily from 

US$938.4 million in 1960 to US$114.5 billion in 2005. Major imports include machinery and 

transport equipment, basic manufactures, and mineral products. The principal import sources 

have been Japan (15.9 percent of total imports in 2004), the United States (14.5 percent), and 

Singapore (11.1 percent). Other important sources have included China, Taiwan, and Thailand. 

Exports: Exports of goods and services (in current U.S. dollars) grew from US$1.2 billion in 

1960 to US$140.8 billion in 2005. Major exports include chemicals, liquefied natural gas, 

petroleum products, electrical machinery and parts, and particularly electronic equipment and 

semiconductors. The principal export markets have been the United States, Singapore, and Japan. 

International investors believe Malaysia’ currency is undervalued, and this has improved the 

competitiveness of Malaysian exports. 

Trade Balance: According to World Bank and government data, Malaysia experienced both 

trade deficits and surpluses from 1960 to 1995 but only surpluses from 1996 to 2005, largely as a 

result of growth in exports of electrical and electronic goods. The external balance on goods and 

services was US$1.4 billion (in current U.S. dollars) in fiscal year (FY) 1996 and US$26.3 

billion in FY 2005. 

Balance of Payments: According to World Bank and government figures, prior to 1998 current 

account balances registered both surpluses and deficits, demonstrating no clear trend toward one 

or the other. However, Malaysia had a current account surplus from 1998 to 2005 that amounted 

to US$19.3 billion in fiscal year (FY) 2005. The improvement has been attributed to several 

factors, including higher trade balances and inflows of foreign direct investment into 

manufacturing and services. 

External Debt: According to government data, from 1980 to 2005 the government’s external 

debt increased from US$2.2 billion to US$8.3 billion but declined from 10.9 percent of gross 

domestic product (GDP) to 6.5 percent of GDP. Total debt to multilateral lenders increased from 

US$593 million in 1980 to US$1.1 billion in 1991, declining thereafter to US$968.9 million in 

2005. However, the government’s portion of total external debt is quite small: 16.1 percent in 

2005, compared with 30.5 percent for nonfinancial public enterprises (such as Petronas) and 53.4 

percent for the private sector. 

Foreign Investment: Foreign direct investment (FDI) increased from US$350.5 million in 1975 

to US$5.2 billion in 1992, declined to US$287.1 million by 2001, and increased to US$4.6 

billion in 2004, the last year for which figures are publicly available. Generally, most FDI has 

come from Japan, Singapore, the United Kingdom, and the United States. The government has 

expressed concern that Malaysia’s competitiveness in attracting FDI may be hindered by various 

factors, including wages that are higher than those in other Asian countries, and has liberalized 
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16

foreign investment policies to attract FDI, particularly in biotechnology, high-technology 

manufacturing, and tourism. 

Foreign Aid: From 1960 to 2004 (the most recent year for which data are available), official 

development aid to Malaysia increased from US$12.8 million to US$289.5 million per year—an 

increase from US$1.56 per capita in 1960 to US$11.49 per capita in 2004. Approximately 99 

percent of official development aid in 2004 was bilateral aid, and nearly all of that came from 

Japan. 

Currency and Exchange Rate: The official currency is the ringgit (MYR), which is subdivided 

into 100 sen. The August 2006 average exchange rate was MYR3.67/US$1. In 2005 the average 

exchange rate was MYR3.79 to US$1, but from October 1, 1997, to July 21, 2005, the 

government fixed the ringgit’s value at MYR3.80 to US$1 and made it nonconvertible in other 

countries. The government created these controls after the 1997 Asian economic crisis in order to 

limit economic exposure to regional economic changes and to stabilize domestic prices and 

exchange rates. The government reportedly lifted these controls to make the currency 

competitive with the Chinese yuan, which China revalued in July 2005. 

Fiscal Year: Malaysia’s fiscal year runs from October 1 through September 30. 

TRANSPORTATION AND TELECOMMUNICATIONS 

Overview: Malaysia has very modern transportation and telecommunications infrastructures, but 

their quality and availability vary geographically. In much of the country, mountainous terrain 

has limited transportation infrastructure development, and sufficient government funding to 

overcome such constraints only began to materialize in the 1980s. Prime Minister Abdullah 

Ahmad Badawi (elected in 2003) has proved more financially conservative with transportation 

programs than his predecessor, Mahathir Mohamad, whose transportation programs have been 

criticized as grandiose and costly. Government road-building programs have responded 

ambitiously to increased private car ownership, but the rail system has changed little since 

colonial times, with the major exception of Kuala Lumpur’s commuter rail system. Roads and 

rail lines are concentrated on the peninsula, particularly in populous areas west of the mountains. 

In East Malaysia, rail service is minimal; roads provide all-weather access among major towns 

but are rudimentary elsewhere. The Ministry of Transport’s total estimated expenditures were 

US$400.1 million in fiscal year (FY) 2006, down from US$685 million in FY 2005, or 1.1 

percent of total government expenditures in FY2006, also down from 2.2 percent in FY2005. 

Malaysia’s telecommunications network is among the most modern in Asia. Since the 1980s 

when the government liberalized telecommunications policies, the country has pursued 

ambitious programs to place itself prominently in global telecommunications. In 1996 the 

government established a Multimedia Super Corridor (MSC) as an international center for 

information communication technology companies to develop and export products. The 

government’s promotion of telecommunications also has improved governance in some ways, 

such as adding transparency to government procedures and increasing access to politicians, 

bureaucrats, and policy information. The government also has deregulated and liberalized 
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investment in the telecommunications industry and, to a lesser extent, allowable content. Foreign 

entities are allowed to own up to 30 percent of local communications companies. Several 

ministries and departments administer telecommunications; thus, telecommunications 

expenditures are broadly distributed and not given a specific expenditure in the federal budget. 

Roads: From 1995 to 2005, total road length increased from 61,380 kilometers to 77,673 

kilometers. Most roads (67.7 percent) are in Peninsular Malaysia, but the government has 

increased funding for roads in East Malaysia. The private sector was heavily involved in road 

building until the 1997 economic crisis, and the government funded completion of some major 

projects. Still, many new roads are tolled and administered by companies with government links. 

In 2005 there were 6.5 million registered automobiles, 7 million registered motorcycles, and 

approximately 1.3 million other registered vehicles, including taxis and buses; nearly 90 percent 

were registered in Peninsular Malaysia. 

Railroads: Malaysia’s rail system has changed little since independence, largely because of 

difficult terrain and poor funding. The sole rail freight operator is government-owned Keretapi 

Tanah Melayu Berhad (KTMB), which is operated on a cost-recovery basis. In 2004 KTMB had 

164 locomotives, 190 passenger coaches, and 3,509 freight wagons. In 2006 there were 2,262 

kilometers of rail lines, including 2,128 kilometers in Peninsular Malaysia. The peninsula has 

two main rail lines, both of which link to the State Railway of Thailand: a 787-kilometer line 

between Singapore and Butterworth and a 528-kilometer line along the east coast. Rail gauge 

and electrification data vary, but about 90 percent of rail lines are 1.000-meter gauge, and fewer 

than 10 percent are electrified. The only commuter rail system is in Kuala Lumpur; it is 

composed of five separately managed rail services, including a monorail, an automated line, and 

a 160-kilometer-per-hour express line that serves Kuala Lumpur International Airport. From 

1997 to 2005, the system’s average daily ridership grew from nearly 47,000 to 433,000. 

Ports: Ports are an important element of Malaysia’s foreign trade-dependent economy. Since the 

early 1990s, the government has undertaken many projects to improve port operations and 

enlarge capacity in all 93 ports. The Ministry of Transportation administers seven “federal” 

ports, all privatized except Kemaman. The states of Sabah and Sarawak administer 16 “state” 

ports, and the Marine Department manages 70 “minor” ports, including one private port (Teluk 

Ewa). The ports with the highest cargo volumes are Bintulu, Pasir Gudang (Johor), Port Dickson, 

Pulau Pinang (Penang), Sabah, and Port Klang (Kelang), the nation’s designated transshipment 

port. From 1996 to 2005, the amount of cargo handled by larger ports grew from 152.3 million 

tonnes to 369.4 million tonnes, and containerized cargo increased from 2.1 million twenty-footequivalent-units (TEUs) to 12.1 million TEUs. 

Inland and Coastal Waterways: In 2004 Malaysia had approximately 7,200 kilometers of 

waterways: 3,200 kilometers in Peninsular Malaysia, 1,500 kilometers in Sabah, and 2,500 

kilometers in Sarawak. Rivers and tributaries are of only marginal significance on the peninsula, 

but they are a major means of transportation in Sabah and Sarawak. As a result of high, yearround precipitation, rivers never run dry and are nearly always navigable, although silting often 

limits navigation to canoes and rafts. 
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Civil Aviation and Airports: In 2004 Malaysia had 117 airports, 37 of which had paved 

runways, and one heliport. The main airports that service international flights are Kota Kinabalu, 

Kuala Lumpur, Kuching, Langkawi, Pulau Pinang (Penang), and Senai (also called Sultan Ismail 

Airport). The national airline, Malaysia Airline System Berhad (or Malaysian Airlines), was 

privatized in 1985, but financial difficulties have threatened its solvency since 2001. The 

company operated 100 aircraft in 2004. Malaysia also has three regional airlines, one charter 

airline, and one helicopter company, Sabah Air. From 1995 to 2005, air passenger traffic 

increased from 27.3 million to 42.8 million passengers per year, and cargo handled increased 

from 482,030 tonnes to 1,006,814 tonnes. 

Pipelines: In 2004 Malaysia had 7,281 kilometers of pipelines: 5,047 kilometers for gas, 1,841 

kilometers for oil, 279 kilometers for condensate, and 114 kilometers for refined products. 

Telecommunications: Malaysia’s telecommunications infrastructure is generally regarded as on 

par with that of Western countries but is largely concentrated in urban areas. Telekom Malaysia 

Berhad (TM) is the sole provider of landline telephones, and the government owns the majority 

of TM’s shares. The telephone system provides good service internationally and among urban 

areas. In 2003 there were an estimated 4.6 million fixed telephone lines. In 2002 there were an 

estimated 11.1 million mobile telephone users. Four operators dominate the telecommunications 

market, which accounts for 62 percent of industry revenue. In 2004 Malaysia had 170 personal 

computers per 1,000 persons and an estimated 8.7 million Internet users (in 2003). The 

government has established the Multimedia Super Corridor (MSC) near Kuala Lumpur in an 

effort to become the global center for information communication technology. 

GOVERNMENT AND POLITICS

Government Overview: Malaysia is a federated constitutional monarchy based on a 

parliamentary system of government and an independent judiciary. States in Malaysia have their 

own constitutions and governments. Political institutions continue to evolve for many reasons, 

including recent emergence from colonialism, greater focus on economic rather than political 

development, and coexisting traditional and nontraditional authorities. Indeed, the supreme 

institution is the Conference of Rulers (Majilis Raja-Raja), which is composed of the hereditary 

rulers of nine states in Peninsular Malaysia and four state governors appointed by the king. The 

nine hereditary rulers in the Conference of Rulers elect one of themselves as the “supreme 

sovereign” or king (Yang di-Pertuan Agong) who acts as head of state for a single five-year 

term. The deputy head of state is elected in the same manner and, although exercising no power, 

is available to fill the king’s position if the latter is absent or disabled. Technically, all 

government acts are legitimized by the king’s authority, and the civilian and military public 

services officially owe their loyalty to the king and hereditary rulers. However, the king only acts 

on the advice of both parliament and the cabinet, and in practice the prime minister is the most 

powerful political authority. 

From 1981 to 2003, Prime Minister Mahathir Mohamed was unquestionably the most powerful 

and influential political figure in Malaysia, substantially influencing economic and social 

development. His successor, Abdullah Ahmad Badawi, has focused on reducing public spending, 
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deferring several large-scale infrastructure projects, and promoting agricultural and educational 

development. Since the 1960s, the same political coalition, led by Mahathir and Abdullah’s 

political party, has governed the country. Some observers contend that corruption is problematic 

in politics, but international organizations that focus on corruption generally suggest that while 

Malaysian politics and business exhibit a degree of corruption, Malaysia has less corruption than 

most countries in the world. 

Executive Branch: Malaysia has several bodies that can exercise executive power. The 

Conference of Rulers (Majlis Raja-Raja) is the supreme institution that is constitutionally 

empowered to select the king (Yang di-Pertuan Agong), approve appointed judges, rule on 

administrative policy changes, and deliberate on national policy questions. The king is the head 

of state and supreme commander of the armed forces, and he may authorize requests to dissolve 

parliament and approve parliamentary bills. However, the king actually has limited executive 

powers and may act only under the advice of the prime minister and cabinet. The prime minister, 

leader of the party that holds a plurality of seats in the House of Representatives (lower house of 

parliament), is the head of government and exercises most executive power. The prime minister 

appoints cabinet members with the king’s consent. 

Legislative Branch: The legislature consists of the king and a bicameral parliament with an 

upper house (Senate, or Dewan Negara) and a lower house (House of Representatives, or Dewan 

Rakyat). The Senate is a permanent body consisting of 70 members that serve three-year terms; 

each of the 13 State Legislative Assemblies elects two members; and the king appoints 44 

members, four of whom are from the federal territories of Kuala Lumpur (2), Labuan, and 

Putrajaya. The Senate elects its president and deputy president from among its own members. 

The House of Representatives consists of 219 members who are popularly elected for five years 

from single-member constituencies. The Senate may initiate legislation, but only the House of 

Representatives can initiate legislation that involves the granting of funds. Both houses of 

parliament and the king must approve legislation for it to be enacted into law. The king has few 

other legislative powers, but he may dissolve the House of Representatives on the prime 

minister’s advice. 

Judicial Branch: Malaysia has an independent judiciary and two court systems. The sharia 

system, which issues rulings under Islamic law, is composed of a high court and courts in each 

state. A system of superior and subordinate courts handles civil and criminal law. Superior courts 

include the Federal Court, the Court of Appeals, and two High Courts. The Federal Court is the 

highest judicial authority and final court of appeal. It has original, referral, and advisory 

jurisdiction as well as jurisdiction over disputes involving states and the federal government. The 

Federal Court has a chief justice and 10 judges; the number of judges needed for rulings varies 

according to the type of case. The Court of Appeals acts as an appeals court between the Federal 

Court and the High Courts. The High Courts—one each for eastern and western Malaysia—have 

original, appellate, and revisionary jurisdiction. A Special Court hears civil and criminal cases 

involving state rulers and the supreme ruler. The attorney general, as the principal legal officer 

and public prosecutor, provides legal advice to the executive branch and may draft bills for 

deliberation and enactment by parliament. 
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Subordinate courts include 60 sessions courts, 151 magistrate courts, and the Court for Children, 

which hears juvenile cases. Subordinate courts have jurisdiction over criminal cases not subject 

to the death penalty. Sessions courts can hear civil cases valued up to US$65,693, and magistrate 

courts have jurisdiction over civil cases valued up to US$6,596. Native courts in Sabah and 

Sarawak and penghulu (village headman) courts in the peninsula handle misdemeanors and civil 

disputes according to traditional customs, but under state jurisdiction. 

Administrative Divisions: Malaysia is a federation of 13 states and three federal territories. The 

states are Johor, Kedah, Kelantan, Melaka, Negeri Sembilan, Pahang, Perak, Perlis, Pulau 

Pinang, Sabah, Sarawak, Selangor, and Terengganu. The federal territories are Kuala Lumpur, 

Labuan, and Putrajaya. Peninsular states are divided into a total of 137 administrative districts, 

Sabah is divided into four residences, and Sarawak is divided into five residences. 

Provincial and Local Government: The Ministry of Federal Territories administers federal 

territories, but states have their own governments and constitutions. State governments are 

composed of a legislative assembly, a speaker of the house, and a head of state. Legislative 

assembly members are elected by single-member constituencies, and assembly members in turn 

elect the speaker. Legislative assemblies may make or enact laws not reserved for the federal 

legislature and on subjects under the concurrent purview of federal and state governments. Heads 

of state are hereditary rulers, except in Melaka, Pulau Pinang, Sabah, and Sarawak, which have 

governors appointed by the king upon the chief minister’s advice. The head of state appoints a 

chief minister from among legislative members, may dissolve assemblies on the chief minister’s 

advice, and must approve all legislation. The head of state is the chief executive, subject to 

advice from an executive council headed by the chief minister. However, chief ministers actually 

handle state administrative matters, assisted by a cabinet of ministers. State-level agencies 

enforce and administer state laws, just as federal agencies do for federal laws. District and 

municipal councils handle policy matters at those respective levels. 

Judicial and Legal System: The federal constitution of Malaysia is the supreme law of the land, 

and the legal system is based on English common law. The judiciary is a newly established and 

evolving institution. Until 1985 the highest court of appeal was the Privy Court, located in the 

United Kingdom. Malaysia has a death penalty and no trial by jury. Critics and jurists contend 

that the system is beset by many problems, such as case backlogs, corruption, poor legal 

representation, and a changing institutional structure. 

Electoral System: Malaysia has universal suffrage for citizens 21 years of age and older. 

Politics and Political Parties: Since independence, Malaysia has been governed by a coalition 

of political parties called the National Front (Barisan Nasional—BN), which consisted of 14 

political parties in the 2004 elections. The United Malays National Organisation (UMNO) has 

been the dominant party in both the BN and the country. The Malaysian Chinese Association 

(MCA) and the Malaysian Indian Congress (MIC; formerly the Malayan Indian Congress) have 

also been influential in the BN. Significant opposition parties include the Pan Malaysian Islamic 

Party (Parti Islam Se-Malaysia—PAS) and the People’s Justice Party (Parti Keadilan Rakyat—

Keadilan). Political parties often draw much of their support from distinct ethnic or religious 

communities, and their electoral success appears to rely on an individual leader’s influence. 
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21

Political parties often are characterized by factionalism, publicized internal disputes, and near 

cloak-and-dagger internal relations. As the perennial majority party in the BN, the UMNO has 

also created barriers for parties to compete in elections, such as increasing the amount of 

required deposits. 

Measured by the number of seats in the 2004 elections for the House of Representatives, the 

most supported political party was the UMNO, which won 109 of the 219 seats, followed by the 

MCA (31 seats), Democratic Action Party (12 seats), Parti Pesakea Bumiputera Bersatu (11 

seats), and Parti Gerakan Rakyat Malaysia (10 seats). All other political parties won fewer than 

10 seats. The BN coalition won 198 out of 219 seats in the 2004 elections. In the 12 general 

elections since 1955, the BN and its predecessor, the Alliance, have won at least 70 percent of 

seats, except in 1969 when they won only 51 percent of seats. 

Mass Media: Mass media are often discussed in terms of the substantial legal restrictions on 

acceptable content rather than the increased availability of media. The 1998 Communications 

and Multimedia Act liberalized acceptable broadcast content and made broadcasters responsible 

for regulating their own content within legal parameters. The Ministry of Energy, Water, and 

Communications and the Communications and Multimedia Commission regulate electronic and 

print media and may revoke the license of any company that is deemed to have violated 

acceptable media content. The constitution protects freedom of the press, but critics contend that 

legal parameters on content are highly restrictive and politically motivated. 

Government-owned Radio Televisyen Malaysia (RTM), the predominant broadcaster, operates 

nine national radio services and 16 regional radio services. The government also owns Institut 

Kefahaman Islam Malaysia, a religious radio broadcaster. The Voice of Malaysia (VOM) is the 

government’s international radio service. Malaysia also has seven commercial radio broadcasters 

and two university radio stations. In 2001 there were 35 AM radio stations, 391 FM radio 

stations, and 15 shortwave radio stations. RTM has two national television services, and three 

commercial broadcasters serve only the peninsula. The Malaysian National News Agency 

(Bernama) is the official news agency and has exclusive rights to receive and distribute news in 

Malaysia. In 2000, Malaysia had 31 daily newspapers with a total average circulation of 2.2 

million. 

Foreign Relations: During the Cold War, Malaysia’s foreign policy was directed toward 

defeating domestic insurgency and constraining international communism. Since the defeat of 

the insurgency in 1989 and the later decline of socialist governments, Malaysia’s foreign 

relations have been largely characterized by economic and trade issues and by its domestic 

treatment of immigrants. Relations with many Asian countries have improved as a result of 

growing trade, but Chinese, Indonesian, and Philippine authorities have expressed concern about 

official and societal treatment of fellow ethnics within Malaysia. The United States regards 

Malaysia as having undertaken important steps against terrorism, such as creating a 

counterterrorism training center, but Malaysian authorities have been upset by the U.S. listing of 

Malaysia as a “terror-risk” country. Relations with the Philippines also have been strained over 

allegations that members of the Moro Islamic Liberation Front, a Filipino insurgent group, have 

commandeered parts of Borneo as a haven. Relations with Brunei and Singapore have been tense 

because of disputed territorial claims that involve commercial and natural resource interests. 
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Membership in International Organizations: Malaysia is a member of numerous international 

organizations including the Asian Development Bank; Asia-Pacific Economic Cooperation; 

Association of South East Asian Nations; Bank for International Settlements; Colombo Plan; 

Commonwealth; East Asia Summit; Food and Agriculture Organization of the United Nations; 

Group of 15; Group of 77; International Atomic Energy Agency; International Bank for 

Reconstruction and Development; International Centre for Settlement of Investment Disputes; 

International Chamber of Commerce; International Civil Aviation Organization; International 

Confederation of Free Trade Unions; International Criminal Police Organization; International 

Development Association; International Development Bank; International Federation of Red 

Cross and Red Crescent Societies; International Finance Corporation; International Fund for 

Agricultural Development; International Hydrographic Organization; International Labour 

Organization; International Maritime Organization; International Monetary Fund; International 

Olympic Committee; International Organization for Standardization; International 

Telecommunication Union; Inter-Parliamentary Union; Multilateral Investment Guarantee 

Association; Nonaligned Movement; Organisation for the Prohibition of Chemical Weapons; 

Organization of the Islamic Conference; Permanent Court of Arbitration; United Nations (UN); 

UN Educational, Scientific and Cultural Organization; UN Industrial Development Organization; 

Universal Postal Union; World Bank; World Confederation of Labor; World Customs 

Organization; World Federation of Trade Unions; World Health Organization; World Intellectual 

Property Organization; World Meteorological Organization; World Tourism Organization; and 

World Trade Organization. 

Major International Treaties: Malaysia is a signatory to numerous international treaties 

including the Basel Convention on the Control of Transboundary Movements of Hazardous 

Wastes and Their Disposal; Chemical Weapons Convention; Comprehensive Nuclear Test Ban 

Treaty (signed but not ratified as of July 2006); Convention on Biological Diversity; Convention 

on Fishing and Conservation of Living Resources of the High Seas; Convention on International 

Trade in Endangered Species of Wild Flora and Fauna; Convention on the Elimination of All 

Forms of Discrimination Against Women; Convention on the Rights of the Child; Convention on 

Wetlands of International Importance Especially as Waterfowl Habitat; Geneva Protocol; 

International Tropical Timber Agreement 1983; International Tropical Timber Agreement 1994; 

Kyoto Protocol to the United Nations Framework Convention on Climate Change; Montreal 

Protocol on Substances that Deplete the Ozone layer; Protocol of 1978 Relating to the 

International Convention for the Prevention of Pollution from Ships, 1973; Treaty Banning 

Nuclear Weapon Tests in the Atmosphere, in Outer Space, and Under Water; Treaty on the NonProliferation of Nuclear Weapons; United Nations Convention to Combat Desertification; United 

Nations Convention on the Law of the Sea; and United Nations Framework Convention on 

Climate Change. 

NATIONAL SECURITY 

Armed Forces Overview: Malaysia has three military services—the army, navy, and air force. 

Foreign observers estimate that in 2005 active-duty armed forces personnel totaled 110,000: 

80,000 in the Malaysian Army (Tentera Darat Malaysia), 15,000 in the Royal Malaysian Navy 

(Tentera Laut Diraja Malaysia), and 15,000 in the Royal Malaysian Air Force (Tentera Udara 
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Diraja Malaysia,). There were also 51,600 reserves—50,000 in the army, 1,000 in the navy, and 

600 in the air force. Historically, security threats have been largely internal. Thus, the country’s 

military is primarily organized to address internal security matters and is strongly oriented 

toward infantry. The government also has attempted to address internal security through 

emphasizing ethnic harmony and economic growth. 

Malaysia’s geography poses inherent security problems and benefits. The physical separation of 

Peninsular Malaysia and East Malaysia by the South China Sea, numerous shared borders, and 

an extensive coast create obstacles for securing the country. However, the peninsula’s position 

on one of the world’s busiest sea lanes, the Strait of Malacca, also means that numerous 

countries are economically interdependent with Malaysia and thus invested in its national 

security and stability. 

Foreign Military Relations: In terms of multilateral military relations, Malaysia has a common 

defense agreement with other nations in the Association of South East Asian Nations (ASEAN) 

and is a member of the Five Power Defence Agreement with Australia, New Zealand, Singapore, 

and the United Kingdom. In regard to bilateral military relations, Malaysia allows the United 

States to use naval and air repair and maintenance facilities in Malaysia. 

External Threat: Malaysia has no immediate external security threats. The country does have 

territorial disputes with other countries, but none has resulted in a militarized dispute since the 

1960s or is expected to do so in the near future. 

Defense Budget: From fiscal year (FY) 2002 to FY2004, Malaysia’s defense budget increased 

from US$2.2 billion to US$2.2 billion but decreased from 2.3 percent of gross domestic product 

(GDP) in 2002 to 1.9 percent of GDP in 2004. In the same period, foreign military assistance 

increased 50 percent from US$800,000 to US$1.2 million. 

Major Military Units: The army consists of two military regions, one headquarters field 

command, and four area commands. In addition, the army has one mechanized infantry brigade, 

11 infantry brigades, and one airborne brigade. The army’s combat units include five armored 

regiments, 28 infantry battalions, three mechanized infantry battalions, three airborne battalions, 

five engineering regiments, one helicopter squadron, and one special forces regiment. The 

army’s reserves are officially called the Territorial Army, consisting of 16 infantry regiments and 

five highway security battalions. The navy is organized into two commands: Naval Area 1 for 

the peninsula and Naval Area 2 for Sabah and Sarawak. The navy also has an aviation wing and 

a naval commando unit. The air force is organized into one air operations headquarters, two air 

divisions, one training and logistics command, and the Integrated Air Defence Systems 

Headquarters. The air force has three ground attack squadrons, two fighter squadrons, one 

reconnaissance squadron, one maritime reconnaissance squadron, and four transport squadrons. 

Major Military Equipment: In 2005 the army was believed to have 26 light tanks, 186 

reconnaissance vehicles, 111 armored personnel carriers, 130 105-millimeter towed artillery, 34 

155-millimeter towed artillery, 232 81-millimeter mortars, 18 multiple rocket launchers, 60 

antitank guided weapons, 584 rocket launchers, 260 recoilless launchers, 60 air defense guns, 48 

surface-to-air missiles, 9 helicopters, and 165 assault craft. The navy has 4 frigates, 41 patrol and 
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coastal combat vessels, 4 mine warfare vessels, 1 amphibious vessel, 4 support vessels, and 6 

armed helicopters. The air force inventory includes 73 combat aircraft, 59 fighter and ground 

attack aircraft, 19 reconnaissance aircraft, 35 transport aircraft, 40 transport and search-andrescue helicopters, 3 reconnaissance unmanned aerial vehicles, 20 training aircraft, and 13 

training helicopters. The air force also has air-to-air and air-to-surface missiles, although the 

number is publicly unavailable. Since the mid-1990s, the countries that have provided the most 

military hardware to Malaysia have been France, New Zealand, Poland, Russia, and the United 

Kingdom. 

Military Service: The minimum age for voluntary military service is 18. Women can serve in 

the military but only in noncombat positions. Malaysia’s only form of conscription is the 

National Service Program, which requires three months of military service for approximately 

80,000 18-year-old men and women randomly selected from the population. The program was 

established in February 2004 to improve the military and to promote national integration and 

patriotism. However, the program has been revamped to address problems such as its poor 

organization and ethnic divisions among recruits. 

Paramilitary Forces: Malaysia has numerous paramilitary organizations, but estimates of their 

total personnel vary. Malaysian paramilitary forces include the General Operational Force with 

approximately 10,000 personnel, the marine police with 2,100 personnel, the police air unit 

whose personnel numbers are publicly unavailable, and area security units—an auxiliary force of 

the General Operations Force—with 35,000 personnel. In addition, there are 1,200 border scouts 

(in Sabah and Sarawak) and the People’s Volunteer Corps, which has approximately 300,000 

members and is involved in domestic security and community development projects. 

Foreign Military Forces: Australia has 148 military personnel in Butterworth, Malaysia, as part 

of an ongoing commitment to the Five-Power Defence Agreement. 

Military Forces Abroad: As of 2006, Malaysian troops were serving in United Nations (UN) 

peacekeeping operations in the Democratic Republic of the Congo, East Timor, Eritrea and 

Ethiopia, Liberia, Serbia and Montenegro, Sierra Leone, and Western Sahara. Malaysian troops 

previously have served on other UN peacekeeping missions. 

Police: Malaysia’s federal police force is the Royal Malaysian Police (RMP), which is under the 

direction of the Ministry of Home Affairs (MHA). States have their own police forces, which are 

subordinate to the RMP. Data on police are scant, but in 2000 the RMP had 82,383 total 

personnel, or 353.6 police for every 100,000 persons. In the same year, there were 167,173 total 

crimes (717.5 crimes per 100,000 persons), mostly thefts and burglaries. Most RMP personnel 

are Malay; females made up 9.7 percent of total personnel in 2000. The public often perceives 

the police as excessively forceful, repressive, and unprofessional. International observers 

contend that Malaysia’s police force is among the country’s most corrupt institutions, and a 2006 

MHA report criticized the police for human rights violations, poor policing, and corruption. 

Internal Security and Terrorism: Some observers regard religious fundamentalism as a 

potential danger to Malaysia’s domestic security while others argue that religious extremism has 

been on the wane since 2001. Both the Malaysian government and outside observers contend that 
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there is little terrorist activity in Malaysia but that the country is used as a haven for terrorists 

from neighboring countries. The government has forcefully cracked down on suspected terrorists 

and has developed high levels of counterterrorism capability and cooperation with Western 

governments. However, at least two notable militant groups are believed to have been active in 

Malaysia since the mid-1990s: the Kumplulan Mujahideen Malaysia (KMM) and Jemaah 

Islamiyah (JI), which is believed to be active in several countries in Southeast Asia. These two 

groups are allegedly linked, and the JI is believed to have links to al Qaeda. In 2001 the KMM 

was found to have possible links with the Pan Malaysian Islamic Party. Malaysian police have 

allegedly demolished another Islamic militant group called Federal Special Forces of Malaysia 

(Pasukan Khas Persekutuan Malaysia—PKPM,). Most extremist activity has occurred in the 

states of Johor, Kedah, Perlis, and Selangor, all on the western side of Peninsular Malaysia. 

Malaysia has also experienced periodic protests and riots, for several reasons. Governmental 

limits on freedom of expression and political participation have contributed to such events. 

Perhaps even more troubling is that after these events there has been some evidence of increased 

ethnic divisiveness, including a rise in support for political parties with specific ethnic or 

religious constituencies. However, other evidence suggests that Malaysia has managed ethnic 

differences better than other pluralistic societies in Asia. 

Human Rights: International and domestic human rights organizations and foreign governments 

are critical of the Malaysian government and in particular the Royal Malaysian Police (RMP), 

but human rights groups and foreign governments generally do not regard Malaysia as being 

among the world’s worst abusers of human rights. International human rights groups have 

publicly expressed concern that preventive detention laws such as the Internal Security Act 1960 

(ISA) and the Emergency (Public Order and Prevention of Crime) Ordinance 1969 allow for 

abuses such as detention without trial or charge. Moreover, human rights groups have 

documented severe abuse of prisoners. At least 112 people were detained under the ISA, and 

most were alleged to be Islamic militants, counterfeiters, and practitioners of religious faiths 

deemed deviant by the government. Critics also contend that the ruling United Malays National 

Organisation (UMNO) has used the ISA to detain an estimated 10,000 dissenters since 1960. 

Human rights organizations also insist that migrant workers are regularly abused, and indeed 

migrant workers are excluded from many provisions of Malaysian employment law. The RMP 

has been particularly criticized for unlawful killings, torture, and arbitrary arrests and detentions, 

although the Human Rights Commission of Malaysia was established in 1999. In addition, 

human rights groups affirm the presence of quotidian violence and oppression against women 

and children, including human trafficking.