I. INTRODUCTION
II. LAND AND RESOURCES
A. Climate
B. Natural Resources
C. Plants and Animals
III. POPULATION
A. Population Characteristics
B. Principal Cities
C. Religion
D. Language
E. Education
F. Culture
IV. ECONOMY
A. Agriculture, Forestry, and Fishing
B. Mining
C. Manufacturing
D. Energy
E. Currency and Banking
F. Commerce and Trade
G. Transport
H. Communications
V. GOVERNMENT
A. Executive and Legislature
B. Judiciary
C. State and Local Government
D. Political Parties
E. Health and Welfare
F. Defence
G. International Organizations
VI. HISTORY
A. The Imposition of British Rule
B. The Coming of Independence
C. The Malayan Emergency
D. Malaysia
E. The Mahathir Government
Description:-
I INTRODUCTION
Malaysia, federation of 13 states forming a constitutional monarchy in South East Asia, comprising two distinct regions separated by some 650 km (400 mi) of the South China Sea. Malaysia is a member of the Commonwealth of Nations. The regions are Peninsular Malaysia, formerly known as West Malaysia; and Sarawak and Sabah, formerly known as East Malaysia. Peninsular Malaysia comprises 11 states occupying the southern half of the Malay Peninsula, bordered on the north by Thailand, on the south by Singapore, on the west by the Strait of Malacca, and on the east by the South China Sea. The states of Sabah and Sarawak occupy the northern third of the island of Borneo, and are bordered on the north and west by the South China Sea, on the east by the Sula and Celebes seas, and on the south by the Indonesian province of Kalimantan. The island of Labuan, formerly part of Sabah, was made a federal territory in 1984. The sultanate of Brunei forms a coastal enclave in northern Sarawak.Malaysia was formed on September 16, 1963 by the federal union of the 11 states of Peninsular Malaysia—then forming the Federation of Malaya (an independent nation since 1957)—with the self-governing state of Singapore, and the former British colonies of Sabah (North Borneo) and Sarawak. Singapore left the new federation in 1965. Malaysia has a total land area of 329,758 sq km (127,320 sq mi). The federal territory of Kuala Lumpur is Malaysia’s capital and largest city.
II LAND AND RESOURCES
Peninsular Malaysia has an area of 131,598 sq km (50,810 sq mi). Its topography is dominated by a series of mountain ranges, running from the north down half the length of the peninsula; the most important is the Main Range, or Barisan Titiwangsa, which rises to over 2,134 m (7,000 ft). Heavily populated coastal lowlands border the ranges on the west; on the east the coastal lowlands are narrower and forested. In the south, the peninsula is relatively level.
A Climate
Malaysia’s climate, except in the higher mountains, is hot and humid throughout the year. Average daily temperatures vary from about 21° to 32° C (70° to 90° F). Rainfall is generally high and distributed throughout the year, although precipitation peaks during the north-east monsoon months of November to March. The exposed northern slopes of Sarawak and Sabah receive as much as 5,080 mm (200 in) of rainfall per year. Average rainfall for the peninsula is about 2,540 mm (100 in).
B Natural Resources
Malaysia has abundant mineral and forest resources. The country is rich in hydrocarbon fuels. Its offshore natural gas and oil deposits, which lie about 13th and 22nd respectively in the world rankings of reserves, are important sources of export revenue. Peninsular Malaysia was once one of the world’s largest producers of tin; in the early 1990s it ranked third after Brazil and Indonesia, although the late 1990s saw the decline of this industry, with Malaysia dropping to seventh place in 1998. Bauxite, iron, copper, and gold are also mined. Malaysia is also a leading producer of several cash crops. It is the largest producer of palm oil, accounting for about half of total world production, and the fourth-largest producer of cocoa. Malaysia was also formerly the world’s largest producer of rubber; by 1993, however, it had been overtaken by Thailand and Indonesia.
C Plants and Animals
Malaysia’s tropical climate supports abundant and diverse plant and animal life. More than half the land area is covered in forest—mainly tropical rainforest, but also deciduous woodland in the mountains. Much is virgin forest, particularly in Sabah and Sarawak, which contain Malaysia’s largest, and some of the world’s oldest, tracts of virgin rainforest. However, in many areas the forest is threatened by clearance for agriculture and commercial logging. The problem is most severe in Sarawak, which has almost doubled unprocessed log exports since 1980 and now accounts for almost 30 per cent of world raw timber exports. Despite national reforestation programmes, the designation of 3 million hectares (7.4 million acres) of national protected virgin forest, and attempts to diversify Sarawak’s economy, the World Bank estimates that trees are still being felled at unsustainable rates.
Malaysia’s fauna includes elephant, sun bear, rhinoceros, wild pig and ox, orang-utan, gibbon, and numerous members of the cat family—including tiger, leopard, clouded leopard, golden cat, and bay cat. Many of these species, including orang-utan, rhinoceros, and the cats, are endangered and are now protected. Sabah and Sarawak have one of the world’s largest and most varied bird populations, including numerous kinds of hornbill, parrot, pheasant, swift, and woodpecker. The small islands opposite the port of Kora Kinabalu, on Sabah’s western coast, have some of the world’s most diverse coral reefs and marine life.
III POPULATION
Malaysia has a very diverse population, reflecting its position on one of the major sea-route crossroads of Asia. Ethnic Malays, who originated in different parts of the peninsula and archipelagic South East Asia, make up about 47 per cent of the country’s total population. About 32 per cent of the population is Chinese, 9 per cent indigenous ethnic peoples of Borneo, and 9 per cent Indian. There are also small communities of Orang Asli, Pakistanis, Filipinos, Indonesians, and Europeans. The Orang Asli were the original inhabitants of the peninsula, but today comprise only a tiny minority of the population. Divided ethnically into the Jakun, who speak an archaic Malay, and the Semang and Senoi, whose languages belong to the Mon-Khmer family, the Orang Asli are primarily adherents of traditional religions. In Peninsular Malaysia about half the population is ethnic Malay (see Malayan Peoples) living mainly in the rural areas. About 30 per cent is Chinese, concentrated in the cities. The remainder is made up mainly of Indians, Pakistanis, and Tamils, many of whom work on the plantations.
In Sabah and Sarawak about one half to two thirds of the population belongs to one of about 30 indigenous ethnic groups, the largest of which are the Iban (Sea Dayak), and Bidayuh (Land Dayak) of Sarawak, and the Kadayan of Sabah (see Dayak). The Chinese constitute the largest non-indigenous group, and the largest single ethnic group in Sarawak. The Malays are a minority group in both Sarawak and Sabah; the latter also has a significant population of migrant Indonesians and Filipinos. The indigenous peoples live mainly along the rivers of the interior of the two states; the Chinese and Malays are dominant in the coastal cities and towns of Sarawak and Sabah.
A Population Characteristics
Malaysia has a population of 22,229,040 (2001 estimate), giving an average population density of about 67 people per sq km (175 per sq mi). Peninsular Malaysia is about seven times more densely populated than Sarawak and Sabah. About 43 per cent of the population is rural, 57 per cent urban (1999). The population growth rate, once among the highest in Asia, has declined steadily since 1960, and was 1.96 per cent in 2001.
B Principal Cities
The economic, cultural, and former administrative centre of Malaysia is Kuala Lumpur. In 1999 Malaysia’s new administrative capital of Putrajaya was opened, 35 km (22 mi) south of Kuala Lumpur near the city of Sepan. Relocation of the administrative offices to the site began in 1999 and is scheduled for completion by 2005. Formerly the capital of and now a federal territory within Selangor State in western Peninsular Malaysia, Kuala Lumpur has a population of 1,145,342 (1996). Other important cities, with their population figures, include Ipoh, 382,853 (1996), a commercial and transport centre, and the capital of Perak State in north-west Peninsular Malaysia; George Town, 219,603 (1996), the capital of Pinang State and one of Malaysia’s leading ports; Johor Baharu, 328,436 (1996), capital of Johor, the most southerly peninsular state; and Kelang, 243,355 (1997 estimate), in Selangor, a major port and manufacturing centre, and the site of the sultan’s palace.
C Religion
Islam is the national religion of Malaysia, and about half the population, principally the Malays, are Muslims. However, the constitution guarantees freedom of religion, and the many other ethnic groups practise a variety of faiths. About 25 per cent of the population, almost all Chinese, practise the so-called Chinese religion, a blend of Buddhism, Confucianism, and Daoism. Another 6 per cent, also predominantly Chinese, are Buddhists. Indians make up the 7 per cent of the population who are Hindus. Christians form about 6 per cent of the population; Sabah’s largest ethnic group, the Kadayan, are Christian. Many of the indigenous peoples of Sabah and Sarawak follow traditional beliefs.
D Language
Bahasa Malaysia, based on Malay, is Malaysia’s official language and is spoken by about 58 per cent of the population. The other principal languages are Chinese (9 per cent), Tamil (an Indian language, 4 per cent), and Iban (3 per cent). English is also widely spoken. See Malayo-Polynesian Languages.
E Education
In Malaysia education is compulsory and in state schools is free between the ages of 6 and 19. Primary education lasts six years and is provided in the four major languages, with English as the compulsory second language. Although about 90 per cent of children of primary school age are estimated to be in school, the drop-out rate in secondary school is high; only half of primary pupils go on to lower secondary school, and only about one quarter complete higher secondary school. In 1997 about 2.84 million pupils were enrolled in primary schools, and about 1.89 million students attended state secondary schools, including vocational and technical schools.
Higher education in Malaysia is provided at seven universities and a number of other institutions. Students with four years of higher secondary school education and the Malaysian Higher School Certificate are eligible to go on to university. In 1995, more than 96,000 students attended institutions of higher education, including the National University of Malaysia (Universiti Kebangsaan Malaysia, founded 1971), in Bangi; the Technological University of Malaysia (Universiti Teknologi Malaysia, 1925) and the University of Malaya (Universiti Malaya, 1962), in Kuala Lumpur; the Putra University, Malaysia (Universiti Putra Malaysia, 1971), in Serdang; the University of Science, Malaysia (Universiti Sains Malaysia, 1969), in George Town; the International Islamic University (1983), in Petaling Jaya; and the Northern University of Malaysia (Universiti Utara Malaysia, 1984), in Alor Setar. In 1995 almost 22 per cent of the national budget was spent on education.
F Culture
Malaysia’s ethnic diversity is reflected in the country’s culture—in the stilted houses of the ethnic Malay kampongs (villages), in the Dayak long houses, in the many different religious festivals, in the variety of cuisines, and in the traditional dance, music, and dress. The wayang kulit, or shadow puppet play, is an ancient theatrical form of Peninsular Malaysia.
Three of Malaysia’s major museums—the National Museum of Malaysia, in Kuala Lumpur; the Sabah Museum, in Kota Kinabalu; and the Sarawak Museum, in Kuching—exhibit collections of regional ethnographic and archaeological materials. The Forest Research Institute, in Kepong, maintains an arboretum, herbarium, and museum. The National Library of Malaysia and the National Archives are in Kuala Lumpur.
IV ECONOMY
Malaysia has been transformed in the past 25 years from a developing country, dependent on the production and export of raw materials, into one of the world’s most rapidly industrializing nations—and the third richest country in South East Asia. Under the New Economic Policy (NEP)—initiated in 1970 following inter-ethnic riots and aimed at reducing poverty, and diversifying the structure and ownership of the economy (traditionally dominated by the Chinese community)—Malaysia has become a world leader in the production of electronics components. It was also the first South East Asian nation to develop a national car—the Proton Saga, now being exported. By the end of the NEP in 1990, manufacturing accounted for almost 30 per cent of gross domestic product (GDP), compared with under 20 per cent a decade earlier, and was the largest export sector. In 1999 manufactured goods accounted for 80.3 per cent of total export revenues and over 32 per cent of GDP, with manufacturing GDP increasing by over 7 per cent in 1996 alone.
The services sector, including tourism and the financial sector, has also expanded rapidly under the NEP, and is now the largest economic sector. It accounted for just under 43 per cent of GDP in 1999, while the agricultural sector contributed just over 11 per cent and mining almost 7 per cent (1996). Export revenues from the oil and natural gas industries, which expanded rapidly during the 1970s, played a key role in financing Malaysia’s industrialization. However, in terms of overall export earnings, oil and natural gas exports now occupy a distant second place (8 per cent) behind manufactured goods. The rubber and tin industries, the mainstay of the pre-independence economy of Malaya, have declined rapidly in importance, and now account for less than 3 per cent of export earnings.
Under the NEP, Malaysia’s economy grew far faster than its population; real growth rates averaged about 6 per cent a year between 1970 and 1990. The gross national product of Malaysia is US$76,944 million (World Bank figure; 1999), equivalent to US$3,390 per capita. However, many rural Malays and most of the indigenous peoples of Sabah and Sarawak still depend upon subsistence agriculture, and poverty remains a significant problem. Under the successor to the NEP, the National Development Policy launched in 1991, the emphasis has shifted towards sustained growth and the eradication of poverty. The aim is to complete Malaysia’s transformation into an industrialized nation by 2020. The policy has included a successful drive to increase foreign investment and a series of privatizations, which have reduced the government’s large direct participation in the economy. Since the late 1980s economic growth has speeded up; Malaysia is now the fastest-growing South East Asian nation, with average real growth in the early 1990s of about 8 per cent a year. It was also, however, one of the chief victims of the financial crisis in South East Asia during 1997.
A Agriculture, Forestry, and Fishing
The agricultural sector is declining in importance in terms of its contribution to GDP (10.7 per cent, 1999) and export earnings (about 10 per cent in 1996, including processed products), but it is still an important source of employment. In 1998, 19 per cent of the workforce was involved in agriculture. About 13 per cent of Malaysia’s land is under arable production, and is farmed by a combination of smallholders and large plantation companies. Many smallholders are subsistence farmers, but the sector also accounts for much of Malaysia’s cash crop production and most of its food crops. Rice is the staple food crop, produced entirely by smallholders. Rubber (introduced in 1876), palm oil (1917), and cocoa (1950s) are the main export crops—Malaysia produces half the world’s palm oil and ranks third and fourth respectively in rubber and cocoa production. Smallholders account for about 50 per cent of palm oil and 25 per cent of rubber production. In 2000 rice production was 1.93 million tonnes, cacao beans 98,000 tonnes, rubber 1.1 million tonnes (1995), and palm oil 7.8 million tonnes (1995). Other important crops are sugar cane, tea, pineapples, coconuts, and copra.
The expansion of commercial logging, mainly in Sarawak, since the 1980s has made Malaysia one of the world’s largest timber exporters. The total output of roundwood in 1999 was 29.3 million cu m (1.03 billion cu ft). The deforestation caused by overlogging in Sarawak has encouraged efforts to increase the added value of the sector by developing plywood and other timber-processing plants. During the 1970s the fishing fleet was modernized and catches increased considerably; the fish catch in 1997 totalled 1.28 million tonnes.
B Mining
In 1995 mining contributed almost 7 per cent of GDP. It employs less than 1 per cent of the labour force. Malaysia is still one of the world’s leading suppliers of tin, although production has declined sharply, from 70,000 tonnes of concentrates in the 1970s to 7,340 tonnes in 1999. Malaysia has substantial offshore oil and natural gas deposits, located mainly off Sabah and Sarawak. Production of petroleum and natural gas has increased greatly since the 1970s, and the refining of crude oil is a major industry. Oil production in 1994 was about 249 million barrels (31.1 million tonnes), up almost 25 per cent since the mid-1980s. Natural gas output rose similarly during the same period to 21.6 million cu m (764.5 billion cu ft). Other minerals of economic importance to Malaysia are bauxite, iron ore, copper, ilmenite, and gold.
C Manufacturing
About 27 per cent of Malaysia’s labour force is employed in manufacturing, which since 1970 has developed into the most important economic sector, contributing about 32 per cent of GDP in 1999 and about 80 per cent of export revenues. Government policy has emphasized the development of new export-oriented industries (rather than import substitution) and greater processing of local raw materials to increase their export value.
Manufacturing growth has been fostered by a combination of government direct investment and, especially, by the encouragement of foreign investors; special export-processing zones have been established that enjoy tax and other privileges. One result of this policy has been Malaysia’s emergence as a leading electronics components producer. In the early 1990s it was the third-largest producer (after the United States and Japan) and the largest exporter in the world of integrated circuits. Other electronics exports included semiconductors, silicon wafers, radios, tape recorders, and stereo equipment. The locally produced Proton car became an export success in the late 1980s. Other important industries include the processing of rubber, tin, oil, and foodstuffs, textiles manufacture, and chemicals.
D Energy
Oil and natural gas are the main sources of commercial energy in Malaysia, followed by coal and hydroelectricity; fuelwood is still a key source of household energy. The contribution of natural gas to electricity production is steadily being increased, while that of oil is being reduced. This is mainly because Malaysia’s own oil production is very high grade and almost all is exported; oil for domestic energy production is imported. In 1993 natural gas accounted for 33 per cent of electricity output, compared with around 15 per cent in the mid-1980s. In 1993 oil accounted for 38 per cent of electricity output, coal and hydroelectric power the remaining 29 per cent. In 1999 about 59 billion kWh of electricity were generated. In 2001 the Malaysian Government agreed to the construction of a hydroelectric power project on the island of Borneo. The Bakun Dam project, expected to cost some US$3.6 billion, will have a generating capacity of 2,400 MW. However, the project has received strong criticism from environmentalists, who argue that the plant is unaffordable and unnecessary.
E Currency and Banking
The monetary unit of Malaysia is the ringgit (also formerly known as the Malaysian dollar), of 100 sen (3.80 ringgit equal US$1; 2001). The Bank Negara Malaysia (founded 1959) is the central bank of Malaysia and the sole issuer of currency. There were 37 commercial banks operating in 1993, including 16 registered foreign banks, 12 merchant banks, and more than 43 local finance companies. There is a stock exchange in Kuala Lumpur. The financial sector has expanded considerably under the government’s NEP. In 1995 it accounted for more than 10 per cent of GDP.
F Commerce and Trade
Exports totalled US$84,455 million in 1999, compared with imports of about US$64,966 million. Machinery and transport equipment, basic manufactures, chemicals, food and beverages, and mineral fuels are the main imports. The structure of exports has changed dramatically since the mid-1970s, when Malaysia was an exporter primarily of raw materials. Machinery and transport equipment now account for about 55 per cent of the total, and basic and other manufactured items another 18 per cent. The other significant exports are: mineral fuels, including crude oil (around 7 per cent); palm and animal and other vegetable oils (6 per cent); and crude materials, including rubber and tin (7 per cent). Malaysia’s main trading partners are Japan, Singapore, the United States, the United Kingdom, and South Korea. Trade with China has expanded significantly in recent years.
The services sector generally (including public services) is now the largest in terms of contribution to GDP (almost 43 per cent in 1999). Tourism, like financial services, has grown substantially since the 1970s and is now among Malaysia’s top foreign exchange earners. By 1995 Malaysia was South East Asia’s leading tourist destination with 7.93 million visitors in 1999, contributing more than US$2.48 billion to foreign exchange earnings. More than 90 per cent of tourists visit Peninsular Malaysia, but tourism in Sabah and Sarawak is also growing.
G Transport
Malaysia’s land transport network is relatively unevenly developed. Peninsular Malaysia has an extensive road and rail network. On Sabah and Sarawak, the mountainous interior has inhibited development, and rivers and traditional means of transport like the canoe remain important. In 1999 Malaysia had 65,877 km (40,934 mi) of roads,most of which was on Peninsular Malaysia; about 76 per cent of the total was paved. The state-owned railways operate about 1,648 km (1,024 mi) of track, all on the peninsula except for a 134-km (83-mi) line on Sabah; Sarawak has no railways. The major national air carrier is Malaysia Airlines (Malaysia Airlines System until 1987), which was founded in 1971 and provides both domestic and international flights. A second national airline, Air Asia, began operations in 1994. Kuala Lumpur’s Subang airport is the most important of Malaysia’s four international airports. Malaysia has many ports, of which the most important are Klang (which was privatized in the early 1990s), George Town, Johor Baharu, and Kuantan on the peninsula, and Kota Kinabalu and Kuching in Sabah and Sarawak respectively.
H Communications
In 1993, Malaysia had 62 newspapers, of which 24 were published in Chinese, 14 in English, and 17 in Bahasa Malaysia. It was estimated that approximately 4.4 million telephones were in operation in Malaysia in 1998. In 1997 it was estimated that there were approximately 9 million radio receivers and about 4 million television receivers in operation. The state-run Radio Television Malaysia operates six national radio and three national television networks. There are also commercial radio stations, and the first commercial private television network began broadcasting in 1984.
V GOVERNMENT
Malaysia has a federal form of government based on the 1957 constitution of the former Federation of Malaya, but including safeguards for the special interests of Sabah and Sarawak. It has been amended several times; amendments in 1974 and 1984 respectively established Kuala Lumpur and Labuan as federal territories.
The head of state is the Yang di-Pertuan Agong (paramount ruler), a monarch elected for a five-year term by and from among the hereditary rulers of 9 of the 13 states of the federation. Executive and legislative authority are vested in the paramount ruler, but he acts on the advice of parliament and the Cabinet. The hereditary rulers, together with the appointed heads of the four other states, form the Conference of Rulers, which must be consulted on and approve any alteration to state boundaries, the extension to the federation as a whole, of Islamic acts and observances, and any amendments to the constitution.
A Executive and Legislature
In practice, executive power is exercised by the Cabinet headed by the prime minister. Both the prime minister and Cabinet are responsible to parliament. The prime minister is appointed by the paramount ruler and is the leader of the majority party or coalition in the Dewan Rakyat, or House of Representatives, the lower house of the bicameral parliament, which has 193 members. The Dewan Negara (Senate), or upper house, has up to 70 members. Members of the lower house are elected by universal adult suffrage for five-year terms. Legislative power is divided between the federal and the state legislatures, which are also elected for five-year terms. Senators serve for six years and must be at least 30 years old. Two senators are elected by each state legislature; the rest are appointed by the paramount ruler. The House of Representatives is the prime legislative body; the Senate has delaying powers only over legislation.
B Judiciary
The supreme court of Malaysia is the Federal Court, headed by the lord president and composed of its own justices plus the Chief Justices of the High Court of Malaya and Borneo. Below the High Court are sessions courts, magistrates’ courts, and chiefs’ courts. The Federal Court can rule on the validity of laws made by central and state government, and adjudicate internal disputes between them.
C State and Local Government
The 11 of the 13 states that comprise Peninsular Malaysia are: Johor, Kedah, Kelantan, Melaka, Negeri Sembilan, Pahang, Perak, Perlis, Pinang, Selangor, and Terengganu. Before the formation of Malaysia in 1963, they formed the Federation of Malaya, an independent nation. From 1963 until 1966 they were known as the States of Malaya, and for around a decade subsequently they were designated the region of West Malaysia. Sabah (including the federal territory of Labuan) and Sarawak, on Borneo, were known for about a decade after 1966 as East Malaysia.
All of the states, except Melaka, Pinang, Sabah, and Sarawak, have hereditary rulers. All the hereditary rulers are sultans, except the rulers of Perlis (a raja) and Negeri Sembilan (the Yang di-Pertuan Besar). Succession is by male primogeniture, except in Negeri Sembilan, where the successor is elected from among all the ruler’s sons, and in Perak, where three royal families take turns to rule. In addition to their temporal powers, the hereditary rulers are also head of the Islamic faith in their respective states. The rulers of Melaka, Pinang, Sabah, and Sarawak are designated Yang di-Pertua Negeri, or governor, and are appointed by the paramount ruler for four-year terms. They have no religious function and do not participate in the election of the paramount ruler of Malaysia, but otherwise they have the same powers as the hereditary rulers.
Effective executive power is in the hands of the Cabinets and councils of ministers of the states, headed by a chief minister. All the states have unicameral legislatures, which vary in size from 14 seats in Perlis to 56 in Sarawak. Members of the state parliaments are all directly elected for five-year terms, except in Sabah, which has an additional six nominated seats. For administrative purposes, each of the 11 peninsular states (except Perlis, which is too small) are divided into districts, each headed by a district officer. Sarawak is split into five divisions and Sabah into four residencies; all are headed by residents. Beneath this level are local, municipal, and city councils.
D Political Parties
Since it was formed in 1963 Malaysia has been governed by multiracial coalitions—initially by the Alliance, but since the early 1970s by the National Front (Barisan Nasional). The Alliance was the coalition of the United Malays National Organization (UMNO), the Malay Chinese Association (MCA), and the Malayan Indian Congress (MIC), which had governed the former Federation of Malaya since independence in 1957. Following the inter-ethnic riots of 1970, the Alliance was widened to include all main parties in the 13 state legislatures. The new coalition was called the National Front and registered as a political confederation in 1974, with an initial membership of ten parties. Membership subsequently increased, averaging about 12 parties, as new ones joined and old ones left after policy disagreements; at the end of 1996 the National Front had 14 members.
The dominant party within both the Alliance and the National Front has been UMNO, which was formed in 1946 and which has provided all the prime ministers since Malayan independence—including Dr Mahathir bin Muhammad, who became prime minister in 1981, and his predecessor Hussein Bin Onn. In 1988 New UMNO (UMNO Baru) was established (with unchanged leadership) to replace the original UMNO, which had been declared illegal because of the participation of unregistered branches in party elections. There are at least 26 opposition parties, some of which belong to two coalitions. The Gagasan Rakyat (People’s Might), a seven-party coalition, is the bigger of the two, and includes the Democratic Action Party, the biggest opposition party. The Muslim Unity Movement, formed in 1989, comprises four parties, including Spirit of ‘46, a group that broke away from UMNO after the 1987 electoral challenge, and the Pan-Malaysian Islamic Party, which was expelled from the National Front in 1977.
E Health and Welfare
Malaysia had 1 physician for every 2,017 people in 1996, and in 2001 an infant mortality rate of 20 deaths per 1,000 live births. In 1994 there were around 33,260 hospital beds. Around 7 per cent of the 1997 national budget was allocated to health expenditure.
F Defence
In 1999 the Malaysian armed forces were made up of an army with about 80,000 regular soldiers; a navy with about 8,000 members; and an air force with approximately 8,000 members and 94 combat aircraft. Malaysia is a member of the Five Powers Defence Arrangement with Australia, New Zealand, Singapore, and the United Kingdom.
G International Organizations
Malaysia belongs to the UN, the Commonwealth of Nations, the Colombo Plan, the Association of South East Asian Nations, and the Organization of the Islamic Conference.
VI HISTORY
The early history of the area of present-day Malaysia is obscure because of a lack of local documents and the almost complete absence of archaeological remains, especially any with inscriptions. According to Chinese sources, however, early contacts were made with China. Traders also spread Hindu influences from India, which affected indigenous customs and the rituals of local rulers. Peninsular Malaysia was not unified politically but was split into small kingdoms and subdivided into almost independent chiefdoms, defined by riverine valleys. Rule in Borneo was even more fragmented. Some of the mainland kingdoms were probably subject to a degree of control by larger empires centred in Cambodia or Sumatra.
About ad 1400 the kingdom of Malacca (also spelt Melaka), was founded on the mainland by a refugee prince, possibly from the neighbouring state of Johor. He was converted to Islam, which traders from India had earlier brought to the area, and Malacca became a centre for the further spread of the Muslim faith. Malacca prospered and expanded its territory, but in 1511 it was conquered by the Portuguese under Afonso de Albuquerque. The presence of the Portuguese Empire in Malacca survived constant fighting with Johor, Achin (modern Aceh) in Sumatra, and other states. In 1641, however, the kingdom fell to the Dutch Empire, which became the dominant European trading power in the region for the next 200 years. Like their Portuguese predecessors, the Dutch were frequently at war with neighbouring kingdoms and succeeded in extending their influence to parts of Johor. In this period the northern Malay kingdoms—Perlis, Kedah, Kelantan, and Trengganu—were usually under Siamese influence.
A The Imposition of British Rule
In the 18th century, the British Empire became active in the area, partly in search of trade, but also to check French power in the Indian Ocean. In 1786 the Sultan of Kedah, looking for help against the Siamese, leased the island of Pinang to the British East India Company. In 1819 Sir Thomas Stamford Raffles of the British East India Company founded Singapore, and in 1824 Britain acquired Malacca from the Dutch. Singapore, Pinang, and Malacca (collectively known as the Straits Settlements) were then British-run.
From about 1850, there was a rapid expansion of tin-mining in the Malay Peninsula, and Malay rulers and the immigrant Chinese they employed became involved in territorial disputes. Fearful that these might disrupt trade, the British moved to take control of the independent peninsular states, working indirectly through the Malay rulers. Using diplomacy and taking advantage of dynastic quarrels, they persuaded the rulers to accept British “residents” or “advisers”, who dictated policy. Before World War II the indigenous states were classified as either federated or unfederated; British control was somewhat looser in the unfederated states. The federated states were Perak, Selangor, Negeri Sembilan, and Pahang. The unfederated states were Johor and the four northern states, which were acquired by the British from Siam (now Thailand) in 1909. At the top of the British system of rule was a High Commissioner, who was also governor of the Straits Settlements.
The area of the present Malaysian states in Borneo was largely under the domination of the powerful Muslim sultanate of Brunei until the 19th century. Before then, Europeans had traded with north Borneo but had not made any permanent settlements. In 1841, however, the sultan of Brunei rewarded James Brooke, an English adventurer who had helped him suppress rebels, with a gift of land and the title Raja of Sarawak; Brooke and his successor “white rajas” had expanded the territory to the present borders of Sarawak by 1905. To the east, the sultans of Brunei and Sulu leased land to foreign traders. The lease was taken on by a British trade syndicate in 1877; the syndicate subsequently signed treaties with both sultans, giving it full control over the territory. In 1881 the syndicate became the British North Borneo (Chartered) Company, after being granted a royal charter to administer the area. British North Borneo and Sarawak became British protectorates in 1888.
B The Coming of Independence
Malaya, Sarawak, and North Borneo were seized by the Japanese in 1942 and remained under Japanese occupation until World War II ended in 1945. The movement for independence that emerged after the war was complicated by ethnic rivalries. The British had encouraged Chinese and Indian immigration in order to supply labour needed by the tin, rubber, and other industries. In the 1940s the population of the Malay Peninsula states was approximately 50 per cent Malay, 37 per cent Chinese, and 12 per cent Indian. Divisions between these groups were deep, coinciding substantially with religious and linguistic differences. With independence for the peninsular states approaching, Malays were concerned that immigrants might acquire political power. In 1946, despite violent Malay opposition, the British imposed a scheme known as the Malayan Union. The British said the union was a move towards self-government, but many Malays feared it was a preliminary step to ending Malaya’s status as a protectorate and turning it into a full colony. There was equal opposition to plans under the union to give most immigrants citizenship and voting rights, while reducing the power of the Malay rulers. Opposition to the union led to the formation of the United Malays National Organization (UMNO) in 1946. Local rulers boycotted the new system and the British were finally forced to initiate talks—mainly with the Malay rulers and UMNO—which led to the establishment of the Federation of Malaya in 1948.
Plans for the Malayan Union (and later the federation) did not include North Borneo and Sarawak. Instead, the British authorities proposed a Borneo Federation of the two (which had been made Crown colonies in 1946) with the sultanate of Brunei, a British protectorate. The scheme ultimately foundered because of the objections of Brunei.
The Alliance coalition, the dominant political grouping that emerged in the early 1950s, was multi-ethnic at the top, but also ensured separate representation of ethnic groups through three component parties: UMNO, the Malayan Chinese Association, and the Malayan Indian Congress. It won an overwhelming victory in the first pre-independence elections on the peninsula, in 1955. The British and the Alliance worked out the post-independence constitution, providing for a federal state, a two-house parliament (one house elected and one appointed), citizenship for most non-Malays, and protection for the Malays, who were regarded as less economically developed and were given preference for civil service jobs, scholarships, and licences.
C The Malayan Emergency
During the run-up to the independence of Malaya, the colonial government was fighting a Communist-led rebellion, which was finally contained after claiming 11,000 lives. The Malay Communist Party (MCP) had played a leading role in the resistance to the Japanese during World War II, and had not been banned after 1945. The MCP had joined the general opposition to the Malayan Union. However, the establishment of the Federation of Malaya in 1948 led it to embark on an armed campaign of economic sabotage.
The MCP had been seeking immediate independence and the end of the power of the traditional Malay rulers, among other things. The Federation initiated a degree of self-government, but not independence, and reinstated most pre-war arrangements, including the role of the sultans. The MCP attacks on tin mines and rubber estates led the British to declare a state of emergency in June 1948 (see Malayan Emergency). The MCP was banned, and British and local troops were supplemented by contingents from Britain’s African colonies, and Australia and New Zealand. By 1954 the MCP was ready to negotiate peace, although sporadic fighting continued for another six years, and it was not until 1989 that the party formally agreed to lay down its arms.
D Malaysia
On August 31, 1957, the Federation of Malaya was established with Tunku Abdul Rahman of the UMNO, the dominant member of the Alliance, as the first prime minister. In 1961 he proposed a pan-Malaysian federation comprising Malaya, Singapore, Sarawak, North Borneo (later called Sabah), and Brunei. However, although enthusiasm for the idea was largely limited to Malaya, all but Brunei joined an expanded federation, renamed Malaysia, on September 16, 1963. Economic and political disputes led to Singapore’s departure from the federation in 1965. Indonesia, under the leadership of President Sukarno, strongly opposed the membership of Sarawak and Sabah, and launched a cross-border campaign of harassment and military incursions, which lasted until 1966.
Malaysian politics have been at times beset by ethnic disputes that in the 1960s centred on language and education. In the 1969 general elections, the Alliance faced opposition from both Malay and non-Malay parties. Immediately afterwards serious rioting broke out in Kuala Lumpur, and at least 200 people were killed. Emergency powers were invoked, restrictions were imposed on raising ethnically sensitive issues, and parliament did not meet again until 1971. The new prime minister, Tun Abdul Razak, announced the New Economic Policy (NEP), which aimed to alleviate poverty in general—and specifically to improve the position of Malays by increasing their share of the country’s wealth, and their percentage of employment in and ownership of sectors in which non-Malays were predominant.
He also broadened the ruling Alliance coalition (already extended to include some parties in Sarawak and Sabah) into the National Front by bringing in the main opposition parties at federal and state level. The Front won the 1974 elections decisively and also, under Prime Minister Datuk Hussein Onn, the 1978 elections. The political scene, however, was still dominated by ethnicity, and the National Front was opposed by two major opposition parties: the Pan-Malayan Islamic Party, which left the National Front in 1977, and which placed increasing emphasis on religion; and the Democratic Action Party.
E The Mahathir Government
When Hussein Onn retired in 1981, he was succeeded by his deputy, Dr Mahathir bin Muhammad. A constitutional conflict in 1983 between the Mahathir government and the hereditary sultans led to a compromise restricting the power of the Yang di-Pertuan Agong and the Council of Rulers to veto certain legislation. In 1987 the Mahathir government responded to the alleged threat of rising tensions between Malays and Chinese by arresting opposition leaders and suspending four newspapers. Elections in 1990 maintained the National Front in power with a commanding parliamentary majority. In 1993 Mahathir was involved in another constitutional wrangle with the hereditary rulers, which ultimately led to the removal of the rulers’ immunity from prosecution.
During the late 1980s and early 1990s, serious disagreements emerged between the federal government and Sabah and Sarawak, which were evidenced in the election of opposition parties to the state governments. There was strong feeling, particularly among indigenous ethnic groups like the Dayaks, that the two states had lost out in Malaysia’s economic growth and industrialization of the 1970s and 1980s—although their oil, natural gas, and timber had provided much of the foreign exchange that financed this transformation. In Sarawak, Dayak groups strongly opposed the rapid expansion of logging. There were also fears that the Malay-Muslim majority on the peninsula was seeking to extend Islamic laws and practices to the two states, at the expense of traditional religions and customs, and Christianity. The fears were strongest in Sabah—where the majority ethnic group, the Kadayan, is Christian. In 1985 Sabah became the first state to elect a non-National Front party to the state government; in 1993 it imposed customs checks on Malaysians travelling from the peninsula, and at times during the early 1990s seemed to be considering breaking away from the federation. Following allegations in the British press about the financing of the Pergau Dam project, the Malaysian government took steps to limit British firms from trading freely in Malaysia, sparking a dispute between the two countries. The trade restrictions were lifted in September 1994. In the general election of April 1995 the ruling National Front coalition won a landslide victory. In October 1996 a general assembly of the UMNO unanimously re-elected Mahathir as party leader, and confirmed his supremacy against the rising generation of politicians grouped around his deputy, Anwar Ibrahim.
However, Mahathir appointed Anwar as acting prime minister during his two-month leave of absence beginning in May 1997, an act seen by some as an official endorsement of his claim to succession. During the summer of 1997, Malaysia was hit by the spread of the financial crisis in neighbouring Thailand, with the Malaysian currency, the ringgit, losing 20 per cent of its value between July and September and Malaysian share prices falling by up to 40 per cent. These difficulties were exacerbated by the reactions of traders to remarks made by Mahathir, who successively blamed currency speculators, the International Monetary Fund, and a Jewish conspiracy for Malaysia’s difficulties. After denying responsibility for the turmoil, in September the Malaysian government reversed its policy and announced a programme of economic retrenchment, including public spending cuts.
In September 1998 Mahathir dismissed finance minister and deputy prime minister Anwar Ibrahim, apparently over disagreements on handling of the continuing economic crisis. The dismissal sparked demonstrations across Malaysia. Anwar was also expelled from UNMO. Later the same month, Anwar was arrested on charges of homosexual activity and corruption. During the trial, which was accompanied by continuing demonstrations, key prosecution witnesses were discredited and the terms of prosecution altered; Anwar protested that the case was politically orchestrated. In April 1999 Anwar was found guilty of abusing his powers while in government and sentenced to six years in prison; with an extra nine-year sentence added in August 2000, when Anwar was found guilty of sodomy. However, the case was felt to have undermined Mahathir and Malaysia's standing internationally, and drew international attention to Malaysia’s human rights record.
Parliamentary elections were held in November 1999, and the National Front was re-elected to give Mahathir his fifth five-year term in office, which he announced would be his last. The party’s large majority in the House of Representatives was weakened slightly with the loss of 14 seats to opposition parties.
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