In 1998, authorities responded to Malaysia s worsening economic crisis by rounding up and deporting thousands of alleged illegal immigrants to Indonesia. On March 26, rioting at one camp and the subsequent police response killed eight detainees and a police officer as police prepared to forcibly repatriate hundreds of Indonesians from Aceh province. Human rights activists warned that some of the Acehnese had valid political asylum claims. Official policy discriminates against Chinese, Indians, and other minorities in the areas of education, employment, and business affairs. Some 60 percent of Malaysians are Muslim, and Islam is the official religion, although non-Muslims worship freely in this secular country.
Observers say the regional economic crisis has contributed to inter-religious tensions.
In March 1998, Muslims in Penang attacked a Hindu temple after its bell ringing allegedly disturbed their prayers nearby, leading to riots between Hindus and Muslims. There are considerable restrictions on trade union association and the right to strike. Each union and labor federation can only represent one trade. The government must certify all unions and can deregister them.