Claim: Malaysia is a multi-ethnic state.

Malaysia -LRB- -LSB- məˈleɪsiə -RSB- ; -LSB- məlejsiə -RSB- -RRB- is a federal constitutional monarchy located in Southeast Asia . It consists of thirteen states and three federal territories and has a total landmass of 330803 km2 separated by the South China Sea into two similarly sized regions , Peninsular Malaysia and East Malaysia -LRB- Malaysian Borneo -RRB- . Peninsular Malaysia shares a land and maritime border with Thailand and maritime borders with Singapore , Vietnam , and Indonesia . East Malaysia shares land and maritime borders with Brunei and Indonesia and a maritime border with the Philippines and Vietnam . The capital city is Kuala Lumpur , while Putrajaya is the seat of the federal government . With a population of over 30 million , Malaysia is the 44th most populous country . The southernmost point of continental Eurasia , Tanjung Piai , is in Malaysia . Located in the tropics , Malaysia is one of 17 megadiverse countries on earth , with large numbers of endemic species .   Malaysia has its origins in the Malay kingdoms present in the area which , from the 18th century , became subject to the British Empire . The first British territories were known as the Straits Settlements , whose establishment was followed by the Malay kingdoms becoming British protectorates . The territories on Peninsular Malaysia were first unified as the Malayan Union in 1946 . Malaya was restructured as the Federation of Malaya in 1948 , and achieved independence on 31 August 1957 . Malaya united with North Borneo , Sarawak , and Singapore on 16 September 1963 to become Malaysia . Less than two years later in 1965 , Singapore was expelled from the federation .   The country is multi-ethnic and multi-cultural , which plays a large role in politics . About half the population is ethnically Malay , with large minorities of Malaysian Chinese , Malaysian Indians , and indigenous peoples . The constitution declares Islam the state religion while allowing freedom of religion for non-Muslims . The government system is closely modelled on the Westminster parliamentary system and the legal system is based on common law . The head of state is the king , known as the Yang di-Pertuan Agong . He is an elected monarch chosen from the hereditary rulers of the nine Malay states every five years . The head of government is the prime minister .   Since its independence , Malaysia has had one of the best economic records in Asia , with its GDP growing at an average of 6.5 % per annum for almost 50 years . The economy has traditionally been fuelled by its natural resources , but is expanding in the sectors of science , tourism , commerce and medical tourism . Today , Malaysia has a newly industrialised market economy , ranked third largest in Southeast Asia and 29th largest in the world . It is a founding member of the Association of Southeast Asian Nations , the East Asia Summit and the Organisation of Islamic Cooperation , and a member of Asia-Pacific Economic Cooperation , the Commonwealth of Nations , and the Non-Aligned Movement .