Tuesday, July 7, 2009

Liberalisation without Social Justice will fail


In 2005 Datuk Seri Anwar Ibrahim made a bold announcement that the New Economic Policy had to be replaced. The announcement shocked both friends and foes alike, who felt that — for whatever the statement’s merits — criticising the NEP was a political misstep.

The BN machinery went into full gear, claiming that Anwar had made a dreadful miscalculation and playing up its narrative that Anwar was a stooge of the West. Now — at least to the Malay community that supported Anwar in a big way in 1999 — they could paint him as pro-Chinese as well. The brainwashing camps of Biro Tatanegara (BTN) were now given more ammunition to convince students and government servants that Anwar was a threat to the country.

But many Malaysians were excited by the development. For my own part, I felt (and still feel) that eradication of race-based policies was the logical extension of the Reformasi movement. I was after all involved in drafting the motion tabled at the 2005 Keadilan congress which spoke of the need to replace the NEP with a Malaysian Economic Agenda that combined liberal market policies with a strong sense of social justice through needs-based affirmative action.

I joined Anwar’s office the next year, and by 2007 Anwar had drafted a pamphlet that fleshed out his perspective on why the NEP — while playing a big role in confronting the challenges of the racial inequalities that we faced in the 1960s and 1970s — had now been hijacked to keep us bound to the state for all things as the political elite took it as an opportunity to enrich themselves all in the name of “Malay interests”. Central to Anwar’s argument was a graph showing the growing gap between nations that had been our peers in the 1960s — Singapore, Korea and Taiwan. Now, Singaporeans on average earn five times more than Malaysians.

Anwar’s boldness was vindicated by the results of the March 8, 2008 general election. For my part, I spoke in my campaign in Seri Setia not about what we should fear from one another, but what we can do together. I spoke not only about Malay welfare, but about the need for Malay, Chinese and Indian issues to be seen as Malaysian problems that concern us all as citizens of this blessed country. UMNO’s arguments that Malaysia was not ready for this were proven wrong.

UMNO’s response has exposed their leaders’ collective schizophrenia. They use Utusan Malaysia to stoke racial tempers while appeasing the non-Malays that things will change, culminating in Datuk Seri Najib Razak’s 1 Malaysia slogan. Finally Najib accepted Anwar’s argument that Malaysia needs to go beyond the NEP, and has announced liberalisation measures to prove his point.

The first round included liberalisation of 27 service sub-sectors, whilst the recently-announced second round included the lowering of the Bumiputera equity quota as listing requirements and the rolling back of the powers of the Foreign Investment Committee.

I wonder how the spin doctors at the PM’s office will instruct the BTN to justify these policies. Najib’s first round of liberalisation measures exposed BN’s divide and rule tactics to the fore — while the English press spoke about removal of Bumiputera quotas, the Malay press — Utusan Malaysia included — only spoke about local quotas. This exposed that beneath the PR blitz of 1 Malaysia, BN still has not abandoned the old way of doing things.

I’m not saying that Malaysia isn’t in need of measures like these. Accepting the reality of liberalisation is crucial for Malaysia and the Malays to move forward. Markets are an important wealth-generating mechanism, with a major role in the economy. I accept that. But it must not be done with a sleight of hand or to simply hijack Pakatan’s agenda, but to openly make the forceful argument with the courage of conviction.

Najib and his cohorts have to actually believe in liberalisation in order for it to work. I wonder if they genuinely understand the benefits that really opening up the country, not only economically but socially and politically will bring — or are they just fishing for votes? If UMNO-BN is sincere about liberalisation, then they can’t be content with these two thrusts but continue to push the envelope, in all areas of our national life — Pakatan Rakyat is more than willing to do so if given the chance.

These measures look good on paper, but the devil will be in the details What are the guarantees that it will not be simply “business as usual” on the ground, far away from the confines of Putrajaya? Malaysians have seen too many cases of bold pledges and initiatives wither away because of shoddy implementation and the lack of political will.

In fact it was UMNO’s previous obsession with equity quotas that exposed how much the political elite benefited from such policies when it meant little to the ordinary Malays — the fishermen, the farmer and the factory worker — who were supposed to be the NEP’s main beneficiaries. After all, the NEP’s main contribution has been the creation of a Malay middle class through education and training, not solely quotas that UMNO Youth leaders constantly harp on — as when Khairy Jamaluddin stated at the 2006 UMNO Youth assembly that the NEP’s quotas should not be 30 but 70 per cent instead. We need capacity-building, not get-rich-quick schemes.

Hence, while we accept the need for a liberalised market, we need to look at the other important elements to be a developed nation. This includes an effective education system that caters for both for the brightest Malaysians as well as those who are left behind, an accessible and efficient health care system and an administration run on democratic principles that are competent, accountable and transparent.

We are being held back by archaic regulations and corruption, venality as well as inefficiency in all these areas. Where are the liberalisation measures here? We await them with bated breath — and Pakatan’s stand on these areas ought to be clear enough for anyone who has read our various manifestos.

Furthermore, any move to liberalise the market should be done in tandem with ensuring social justice for all Malaysians as well. Without going together, the great inequalities in our society today will exacerbated. Malaysia already has a very unequal society, and disparities within the Malay community are far bigger than other communities. Malaysians — regardless of whether they are Malays, Indians, Chinese or Ibans — at the bottom of society will not be able to rise up and enjoy the country’s development and progress if there is no imperative for the welfare of the people in our policies.

One does not have to go far to realise the plight of ordinary Malaysians. In my constituency, every week dozens of my constituents come to me to ask for welfare assistance. Some are elderly, abandoned by their children. There are single mothers left behind with children by their philandering husbands.

Yet when we forward their names to the Welfare Department, most end up frustrated by the extremely narrow definition of deserving beneficiaries and the red tape involved in order to qualify for aid. Most are disqualified on the smallest pretexts. While the Muslims have access to payments related to zakat, the non-Muslims do not.

I’m not sure how abolishing the FIC guidelines and the liberalisation of the rules related to the ownership of financial institutions will help cases like these. The lessons from the last two decades all over the globe have informed us well and truly that trickle-down economics doesn’t work.

One isn’t advocating that Malaysia construct a nanny state, and indeed having overgenerous welfare provisions are not healthy either. Nevertheless, some form of universal social safety net that compels and empowers its recipients to go back to work (such as the welfare-to-work programme in the US) can provide for effective social security in a market economy.

The UMNO-BN government has been unable to provide this despite their claims to the contrary. The latest slew of faux liberalisation policies increases the worry that the poor of Malaysia will be further neglected. It will be just awful if the liberalisation policies end up not really making it easier to do business or invest in Malaysia, and also lead to more social inequality.

We have to concede it is commendable that the government is embracing a brand of change that was until just recently termed as a betrayal to the Malays. Yet without addressing the other issues of governance, and indeed that of mindsets, in a comprehensive manner, liberalisation will not be the panacea to our nation’s many woes.

Article by Nik Nazmi Nik Ahmad

*Nik Nazmi Nik Ahmad, is the political secretary to the Selangor menteri besar and state assemblyman for Seri Setia. He was the youngest elected representative in the 2008 general election and blogs at www.niknazmi.com.

Monday, July 6, 2009

Kampung Buah Pala Issue

Kampung Buah Pala Land is a Penang state matter, says Najib

Prime Minister Datuk Seri Najib Razak said today the Kampung Buah Pala land tussle must be settled by the Penang state government, passing the buck back to the DAP-led Pakatan Rakyat (PR) administration in what is turning into a racial powder keg. The Penang state government said yesterday it would be writing to Najib to seek assistance from the federal government to take over the piece of prime land.

A small number of families in Kampung Buah Pala, in the Glugor area of Penang, are facing eviction after a private developer won outright ownership of the land recently. But a number of Hindu Rights Action Front (HINDRAF) activists have seized on the residents’ predicament, and turned the dispute into a racial issue.

Today, Najib said the residents’ predicament was a state matter and should be settled at the state government level. The prime minister’s remarks shut the door on the possibility of any federal intervention.

Penang CM Lim Guan Eng

Penang CM Lim Guan Eng

The Penang state government has already said it would be too costly to acquire the land, and let the residents – mostly Indian cowherds – continue staying there. Chief Minister Lim Guan Eng said the state government could not afford the high cost of taking over the land to enable 23 families to continue occupying the area. He had hoped the federal government could assist in acquiring the land from Koperasi Pegawai Kerajaan Pulau Pinang and pay compensation to developer Nusmetro Ventures (P) Sdn Bhd.

No quick resolution to the controversy is now in sight, with certain HINDRAF leaders ratcheting up the rhetoric against the Penang government with plans to use the issue as a cause célèbre to revive the group’s own flagging fortunes.

Conflicting reports from residents say the disputed land had been held in trust for their use. The trust was apparently set up by the previous colonial-era owners of the land. The nature and conditions of the trust has not been disclosed, but legal experts say such documents cannot be enforced in perpetuity.

But it has also been reported that the property had been converted into Temporary Occupation License (TOL) land after independence. The land was eventually sold and alienated to the new owners during the tenure of the previous Barisan Nasional (BN) government.

It was reported that following a lawsuit, the Federal Court had declared the residents had no locus standi, or legal standing, to lay claim to the land. But since the involvement of HINDRAF, the controversy has taken on emotional and racial overtones. It is unclear if residents want to continue staying on the land or if they want better compensation than what has been offered by the developers.

Australian PM pressures Malaysia on people-smuggling

Australian PM pressures Malaysia on people-smuggling

SYDNEY (AFP) - Prime Minister Kevin Rudd was Monday to pressure Malaysia over people-smuggling with thousands of illegal immigrants hit by wars and the global slump reportedly headed to Australia.

Rudd and Foreign Minister Stephen Smith were to make a rare joint call on Malaysian Prime Minister Najib Razak during a flying visit en route to Germany and the 17-nation Major Economies Forum (MEF) in Italy.

"Malaysia is an important economic partner of Australia, an important security partner and important for us also in combating the real problem of people-smuggling," Rudd told reporters.

"I'll only be on the ground for a few hours but it struck me as a great opportunity to spend a few hours on some practical questions given that people-smuggling is a real challenge for us, the Indonesians, the Malaysians and all countries within the region," he added.

Illegal immigration is a hot political issue in Australia, which has long grappled with the arrival of boatloads of refugees prepared to make the risky voyage from areas hit by conflict and economic hardship.

Australia's navy last month stopped a boat off the northwest coast carrying 194 asylum-seekers, the biggest number in eight years and raising this year's total to 825, compared to just 179 for the whole of 2008.

Local media say that up to 10,000 immigrants from Afghanistan, Sri Lanka, Myanmar and Iraq are massing in Malaysia for passage to Australia by people-smugglers.

The developments forced Rudd, under fire for relaxing the tough stance of his predecessor John Howard, to defend his policy as "hardline and sensible."

"What we see worldwide is a large increase in the number of illegal people movements right around Asia and beyond," he said on Monday.

"Therefore the active cooperation between ourselves and regional governments on security, on intelligence, on border control is really important."

Foreign Minister Smith, who arrived in Malaysia separately ahead of Rudd's evening visit, acknowledged the joint visit was "unusual" but said it showed traditionally fraught relations with Malaysia were improving.

"It is unusual because normally the practice of Australia is that the prime minister and the foreign minister essentially travel separately," Smith told the Nine Network on Sunday.

"We'll of course also be having very serious conversations with the Malaysians about our joint efforts against people-smuggling," he added.

Rudd last year rolled back Howard's policy, under which many refugees were locked up for years in detention camps, and introduced mandatory six-monthly case reviews in a bid to speed up processing.

On Monday, the conservative opposition repeated its calls for a stronger stance, claiming Rudd's move was encouraging refugees.

"Kevin Rudd having a cup of coffee with people in Malaysia is not going to be having the people-smugglers sitting up there in Southeast Asia quaking in their boots," Liberal Party frontbencher Scott Morrison told Sky News.

Rudd will also meet Germany's Chancellor Angela Merkel and press Pope Benedict XVI to canonise an Australian nun during his five-day trip, as well as attending the MEF meeting on July 9.

Felda Eyes More Overseas Estates

The government-owned agency has received offers from Colombia, Brunei, Myanmar and Africa to open estates in these countries

The Federal Land Development Authority (Felda), the world's largest owner and manager of plantation land, is all set to open estates in more countries abroad as part of its plan to be a global player.

Felda chairman Tan Sri Dr Mohd Yusof Noor said the government-owned agency received offers from countries like Colombia, Brunei, Myanmar and Africa.

"We are conducting feasibility studies on each of these countries such as demand and supply, return on investment as well as the cost factor.

"It costs twice as much to open plantations in a developed country compared to a developing country," Yusof told Business Times recently at Felda's headquarters in Kuala Lumpur.


Felda has operations in seven countries, selling and processing crude or processed palm oil and its related products.

It has been approached before when in 2004 the West African state of Sierra Leone, Papua New Guinea, Timor Leste and most recently Brazil, asked for help with the planting of oil palm and plantation management.

As an example on how much investment is needed, Felda announced last week an allocation of RM91 million to replant 16 land schemes alone. Felda has a total of 317 land schemes nationwide.

"We are still studying all these offers and have not made any decisions yet because we need to make sure we get returns on all of these investments," Yusof said.

An investment would be long term due to the nature of the business and it also needs to be sure of demand.

"So part of Felda's strategy is to go into our traditional buyers such as China and India where we know there is demand for our palm oil and we start small by selling cooking oil.

"We also have to make sure our plantations back home can supply enough before we really expand overseas," he said.

This is why Felda has yet to set up a refinery in Europe; traditionally, the West is unfriendly towards palm oil.

"That is why we start small by setting up marketing offices in France and Turkey. Later on, Turkey can be a very important gateway for Felda to enter Europe in a bigger way," Yusof said.

As for Brazil, Felda has been invited to take a look at the country but before it can even start, the agency has been attacked by anti-palm oil campaigns by various quarters especially non-governmental organisations.

"So far, our expansion plan into Brazil has been postponed," Yusof said.

On earnings this year, Yusof said Felda remains optimistic that it can match last year's revenue of RM15 billion but also warned of a difficult year ahead.

"This is because we have yet to see the full impact of the El Nino but we also remain optimistic, judging from our encouraging first quarter results."

The Felda Group, which has 40 wholly-or partly-owned subsidiaries as well as joint-venture firms, produces a fifth of the world's crude palm oil output.

Set up in July 1956, Felda as at 2007 has a total landbank of 853,313ha of which 90 per cent are planted with oil palm.

Out of the total land area, about half is owned by Felda's more than 110,000 smallholders and their 1.5 million family members. Felda manages 317 land schemes nationwide and owns 72 oil palm mills and seven refineries.

Public Health: Malaysia's little pick me up

Ministry of Health officials raided premises in the northern suburbs of Kuala Lumpur, Malaysia's capital, acting on information that had led them to follow a trail of suspicious coffee mixes back to their source.

The coffee mixes, sold in innocuous packages saying only "beneficial for men" (something of a recognised code in Malaysia for products that are reputed to boost sexual prowess - or desire) had been turning up all over the country, distributed by a quiet network marketing plan that operated mostly by word of mouth. By avoiding the usual distribution channels that rely on publicity, the network had managed to develop under the radar of all the relevant authorities.

Malaysians are seemingly addicted to both supplements. there is a massive array on sale at all pharmacies and supermarkets - even minimarkets stock them or are part of network marketing schemes. "Network marketing" schemes abound with some foreign networks sending significant numbers of foreigners to deliver the sales pitches to new recruits at meetings where zeal is a vital tool.

Malaysians are also hooked on "3 in 1" drinks: everything from tea to oatmeal drinks, from coffee to hot chocolate and all points in between are sold in sachets containing the drink, powdered milk or "creamer" and sugar. And they are extremely popular in a country where many people don't cook and - in traditional apartment blocks - don't even have a kitchen. In such cases, sachet drinks and instant noodles are the primary alternatives to going out to eat.

But this time, what was in the coffee was not a natural addition such as ginseng or tangkat ali. This time it was a chemical called sildenafil. That's the active ingredient in Pfizer's Viagra.

There is a huge worldwide problem with fake Viagra: some of which has no active ingredient, some of which has harmful or even toxic content and some of which has too little (or in the case of a production mishap, too much) of the active ingredient. It's not so long ago that a shipment of a drug branded "myagra" was picked up in Malaysia having been produced in India, where much of the world's counterfeit drugs industry is centred.

However, Malaysia is interesting because it has so many ethnic ties: Indians, Chinese and Malays are all incomers - albeit over a period of several hundred years. And they have all, through cultural or religious ties, kept their links to their homelands.

Therefore counterfeit products from China and India have a ready transit point in Malaysia, despite the best efforts of the authorities to stop it.

The latest find, however, may prove to be from much nearer to home: because most of the coffee mixes referred to above are produced in Malaysia. Tongkat ali is traditionally used in the Malay community: the Chinese and Indians have not taken to it in the same way - probably because its use originated in rural areas and the Chinese and Indians are historically urban dwellers.

The investigation is not complete. 9,000 sachets were confiscated in the raid and now the search will centre on where it was produced and where the sildenafil was sourced from. The likely places are India and China. The distribution network for drugs and counterfeit pharmaceuticals from India into Malaysia is particularly well established. And the find was in the north of the city which has strong Indian links. Therefore, although no details have been released, there is speculation that the source was from India. However, against this is that the distribution network went national very quickly - and the Indian population is largely based in and around Kuala Lumpur. That kind of spread would almost certainly require a Chinese or Malay involvement. As the Malay population has less access to the sildenafil, a link to China would indicate a Chinese network.

As always, in Malaysia, the apparently simple turns into something deliciously complicated.

Worldwide there is a huge demand for viagra with charlatans peddling their wares by e-mail spam and internet sites. The product being sold in Malaysia was not fake. Ironically, it was the inclusion of real sildenafil that creates the risk of prosecution. The product is legal for sale in Malaysia - but only with a prescription.

My Beloved Country, Malaysia


Malaysia (pronounced /məˈleɪʒə/ or /məˈleɪziə/) is a country that consists of thirteen states and three federal territories in Southeast Asia with a total landmass of 329,847 square kilometres (127,355 sq mi).[4][5] The capital city is Kuala Lumpur, while Putrajaya is the seat of the federal government. The population stands at over 27 million.[5] The country is separated into two regions — Peninsular Malaysia and Malaysian Borneo — by the South China Sea.[5] Malaysia borders Thailand, Indonesia, Singapore, Brunei and the Philippines.[5] The country is located near the equator and experiences a tropical climate.[5] Malaysia's head of state is the Yang di-Pertuan Agong[6] and the government is headed by a Prime Minister.[7][8] The government is closely modeled after the Westminster parliamentary system.[9]

Malaysia as a unified state did not exist until 1963. Previously, a set of colonies were established by the United Kingdom from the late-18th century, and the western half of modern Malaysia was composed of several separate kingdoms. This group of colonies was known as British Malaya until its dissolution in 1946, when it was reorganized as the Malayan Union. Due to widespread opposition, it was reorganized again as the Federation of Malaya in 1948 and later gained independence on 31 August 1957.[10] Singapore, Sarawak, British North Borneo and the Federation of Malaya joined to form Malaysia on 16 September 1963.[11] The early years of the new union were marred by an armed conflict with Indonesia and the expulsion of Singapore on 9 August 1965.[12][13] The Southeast Asian nation experienced an economic boom and underwent rapid development during the late-20th century. Rapid growth during the 1980s and 1990s, averaging 8% from 1991 to 1997, has transformed Malaysia into a newly industrialised country.[14][15] Because Malaysia is one of three countries that control the Strait of Malacca, international trade plays a large role in its economy.[16] At one time, it was the largest producer of tin, rubber and palm oil in the world.[17] Manufacturing has a large influence in the country's economy.[18] Malaysia has a biodiverse range of flora and fauna, and is also considered one of the 18 megadiverse countries.[19]

Malays form the majority of the population of Malaysia. There are sizable Chinese and Indian communities as well.[20] The Malay language[21] and Islam are the official language and religion of the federation respectively.[5][22]

Malaysia is a founding member of the Association of Southeast Asian Nations and participates in many international organisations such as the United Nations.[23][24] As a former British colony, it is also a member of the Commonwealth of Nations.[25] It is also a member of the Developing 8 Countries.[26]

Contents

Etymology

The word Malaysia is visible on a 1914 map from an American atlas.

The name "Malaysia" was adopted in 1963 when the Federation of Malaya, Singapore, North Borneo and Sarawak formed a 14-state federation.[11] However the name itself had been vaguely used to refer to areas in Southeast Asia prior to that. A map published in 1914 in Chicago has the word Malaysia printed on it referring to certain territories within the Malay Archipelago.[27] The Philippines once contemplated naming their state "Malaysia", but Malaysia adopted the name first in 1963 before the Philippines could act further on the matter.[28] Other names were contemplated for the 1963 federation. Among them was Langkasuka (Langkasuka was an old kingdom located at the upper section of the Malay Peninsula in the first millennium of the common era).[29]

Even further back into history, the English ethnologist George Samuel Windsor Earl in volume IV of Journal of the Indian Archipelago and Eastern Asia in 1850 proposed to name the islands of Indonesia as Melayunesia or Indunesia though he favored the former.[30]

History

Prehistory

Archaeological remains have been found throughout peninsular Malaysia, Sabah and Sarawak. The Semang have a deep ancestry within the Malay Peninsula, dating to the initial settlement from Africa over 50,000 years ago. The Senoi appear to be a composite group, with approximately half of the maternal lineages tracing back to the ancestors of the Semang and about half to Indochina. This is in agreement with the suggestion that they represent the descendants of early Austronesian speaking agriculturalists, who brought both their language and their technology to the southern part of the peninsula approximately 5,000 years ago and coalesced with the indigenous population. The Aboriginal Malays are more diverse, and although they show some connections with island Southeast Asia, some also have an ancestry in Indochina around the time of the Last Glacial Maximum, followed by an early-Holocene dispersal through the Malay Peninsula into island Southeast Asia.[31]

Early history

Ptolemy showed the Malay Peninsula on his early map with a label that translates as "Golden Chersonese", the Straits of Malacca were referred to as "Sinus Sabaricus".[32] From the mid to the late first millennium, much of the Peninsula as well as the Malay Archipelago were under the influence of Srivijaya.

A Famosa in Malacca. It was built by the Portuguese in the 15th century.

There were numerous Chinese and Indian kingdoms in the 2nd and 3rd centuries CE—as many as 30 according to Chinese sources. Kedah—known as Kedaram, Cheh-Cha (according to I-Ching) or Kataha, in ancient Pallava or Sanskrit—was in the direct route of invasions of Indian traders and kings. Rajendra Chola, Tamil Emperor who is now thought to have laid Kota Gelanggi to waste, put Kedah to heel in 1025 but his successor, Vira Rajendra Chola, had to put down a Kedah rebellion to overthrow the invaders. The coming of the Chola reduced the majesty of Srivijaya, which had exerted influence over Kedah and Pattani and even as far as Ligor.

The Buddhist kingdom of Ligor took control of Kedah shortly after, and its King Chandrabhanu used it as a base to attack Sri Lanka in the 11th century, an event noted in a stone inscription in Nagapattinum in Tamil Nadu and in the Sri Lankan chronicles, Mahavamsa. During the first millennium, the people of the Malay Peninsula adopted Hinduism and Buddhism and the use of the Sanskrit language until they eventually converted to Islam.

There are reports of other areas older than Kedah—the ancient kingdom of Gangga Negara, around Beruas in Perak, for instance, pushes Malaysian history even further into antiquity. If that is not enough, a Tamil poem, Pattinapillai, of the second century CE, describes goods from Kadaram heaped in the broad streets of the Chola capital. A 7th century Sanskrit drama, Kaumudhimahotsva, refers to Kedah as Kataha-nagari. The Agnipurana also mentions a territory known as Anda-Kataha with one of its boundaries delineated by a peak, which scholars believe is Gunung Jerai. Stories from the Katasaritasagaram describe the elegance of life in Kataha.

Between the 7th and the 13th century, much of Peninsular Malaysia was under the Srivijaya empire which centred itself in Palembang on the island of Sumatra. Following that, a wider Majapahit empire which was based on Java island, had influence over most of Indonesia, Peninsular Malaysia and the coasts of Borneo island.

In the early-15th century, the Malacca Sultanate was established under a dynasty founded by Parameswara , a prince from Palembang from the once Srivijayan empire. Conquest forced him and many others to flee Palembang. Parameswara in particular sailed to Temasek to escape persecution and came under the protection of Temagi, a Malay chief from Patani who was appointed by the King of Siam as Regent of Temasek. Within a few days, Parameswara killed Temagi and appointed himself as regent. Some 5 years later he had to leave Temasek due to threats from Siam. During this period, Temasek was also attacked by a Javanese fleet from Majapahit.

He later headed north to found a new settlement. At Muar, Parameswara contemplated establishing his new kingdom at either Biawak Busuk or at Kota Buruk. Finding that the Muar location was not suitable, he continued his journey northwards. Along the way, he reportedly visited Sening Ujong (former name of present day Sungai Ujong) before reaching a fishing village at the mouth of the Bertam River (former name of the Malacca River). This evolved over time to become the location of modern day Malacca Town. According to the Malay Annals, it was here that he witnessed a mouse deer outwitting a dog while resting under a Malacca tree. He took what he saw as a good omen and decided to establish a kingdom called Malacca, building and improving facilities for the purpose of trade.

According to a theory, Parameswara became a Muslim when he married a Princess of Pasai and he took the fashionable Persian title "Shah", calling himself Iskandar Shah[33]. There are also references that indicate that some members of the ruling class and the merchant community residing in Malacca were already Muslims. Chinese chronicles mention that in 1414, the son of the first ruler of Malacca visited Ming to inform them that his father had died. Parameswara's son was then officially recognised as the second ruler of Malacca by the Chinese Emperor and styled Raja Sri Rama Vikrama, Raja of Parameswara of Temasek and Melaka and he was known to his Muslim subjects as Sultan Sri Iskandar Zulkarnain Shah or Sultan Megat Iskandar Shah. He ruled Malacca from 1414 to 1424.[34][35]

In 1511, Malacca was conquered by Portugal, which established a colony there. The sons of the last Sultan of Malacca established two sultanates elsewhere in the peninsula — the Sultanate of Perak to the north, and the Sultanate of Johor (originally a continuation of the old Malacca sultanate) to the south. After the fall of Malacca, three nations struggled for the control of Malacca Strait: the Portuguese (in Malacca), the Sultanate of Johor, and the Sultanate of Aceh. This conflict went on until 1641, when the Dutch (allied to the Sultanate of Johor) gained control of Malacca.

[edit] British arrival

Britain established its first colony in the Malay Peninsula in 1786, with the lease of the island of Penang to the British East India Company by the Sultan of Kedah. In 1824, the British took control of Malacca following the Anglo-Dutch Treaty of 1824 which divided the Malay archipelago between Britain and the Netherlands, with Malaya in the British zone. In 1826, Britain established the crown colony of the Straits Settlements, uniting its four possessions in Malaya: Penang, Malacca, Singapore and the island of Labuan. The Straits Settlements were initially administered under the East India Company in Calcutta, before first Penang, and later Singapore became the administrative centre of the crown colony, until 1867, when they were transferred to the Colonial Office in London.

During the late-19th century, many Malay states decided to obtain British help in settling their internal conflicts. The commercial importance of tin mining in the Malay states to merchants in the Straits Settlements led to British government intervention in the tin-producing states in the Malay Peninsula. British gunboat diplomacy was employed to bring about a peaceful resolution to civil disturbances caused by Chinese and Malay gangsters, and the Pangkor Treaty of 1874 paved the way for the expansion of British influence in Malaya. By the turn of the 20th century, the states of Pahang, Selangor, Perak, and Negeri Sembilan, known together as the Federated Malay States (not to be confused with the Federation of Malaya), were under the de facto control of British Residents appointed to advise the Malay rulers. The British were "advisers" in name, but in reality, they exercised substantial influence over the Malay rulers.

Sultan Abdul Samad Building in Kuala Lumpur houses the High Court of Malaya and the Trade Court. Kuala Lumpur was the capital of the Federated Malay States and is the current Malaysian capital.
Malaysia Day celebration in 1963. (Majulah Malaysia means "Onwards Malaysia")

The remaining five states in the peninsula, known as the Unfederated Malay States, while not directly under rule from London, also accepted British advisers around the turn of the 20th century. Of these, the four northern states of Perlis, Kedah, Kelantan and Terengganu had previously been under Siamese control. The other unfederated state, Johor, was the only state which managed to preserve its independence throughout most of the 19th century. Sultan Abu Bakar of Johor and Queen Victoria were personal acquaintances, and recognised each other as equals. It was not until 1914 that Sultan Abu Bakar's successor, Sultan Ibrahim accepted a British adviser.

On the island of Borneo, Sabah was governed as the crown colony of British North Borneo, while Sarawak was acquired from Brunei as the personal kingdom of the Brooke family, who ruled as white Rajahs.

Following the Japanese Invasion of Malaya and its subsequent occupation during World War II, popular support for independence grew.[36] Post-war British plans to unite the administration of Malaya under a single crown colony called the Malayan Union foundered on strong opposition from the Malays, who opposed the emasculation of the Malay rulers and the granting of citizenship to the ethnic Chinese.[37] The Malayan Union, established in 1946 and consisting of all the British possessions in Malaya with the exception of Singapore, was dissolved in 1948 and replaced by the Federation of Malaya, which restored the autonomy of the rulers of the Malay states under British protection.

During this time, rebels under the leadership of the Malayan Communist Party launched guerrilla operations designed to force the British out of Malaya. The Malayan Emergency, as it was known, lasted from 1948 to 1960, and involved a long anti-insurgency campaign by Commonwealth troops in Malaya. Although the insurgency quickly stopped there was still a presence of Commonwealth troops, with the backdrop of the Cold War.[38] Against this backdrop, independence for the Federation within the Commonwealth was granted on 31 August 1957.[10]

Post independence

Mahathir bin Mohamad was the leading force in making Malaysia into a major industrial power.

In 1963, Malaya along with the then-British crown colonies of Sabah (British North Borneo), Sarawak and Singapore, formed Malaysia. The Sultanate of Brunei, though initially expressing interest in joining the Federation, withdrew from the planned merger due to opposition from certain segments of its population as well as arguments over the payment of oil royalties and the status of the Sultan in the planned merger.[39][40]

The early years of independence were marred by the conflict with Indonesia (Konfrontasi) over the formation of Malaysia, Singapore's eventual exit in 1965, and racial strife in the form of race riots in 1969.[12][41] The Philippines also made an active claim on Sabah in that period based upon the Sultanate of Brunei's cession of its north-east territories to the Sulu Sultanate in 1704. The claim is still ongoing.[42] After the 13 May race riots of 1969, the controversial New Economic Policy—intended to increase proportionately the share of the economic pie of the bumiputras ("indigenous people", which includes the majority Malays, but not always the indigenous population) as compared to other ethnic groups—was launched by Prime Minister Abdul Razak. Malaysia has since maintained a delicate ethno-political balance, with a system of government that has attempted to combine overall economic development with political and economic policies that promote equitable participation of all races.[43]

Between the 1980s and the mid-1990s, Malaysia experienced significant economic growth under the premiership of Mahathir bin Mohamad.[44] The period saw a shift from an agriculture-based economy to one based on manufacturing and industry in areas such as computers and consumer electronics. It was during this period, too, that the physical landscape of Malaysia has changed with the emergence of numerous mega-projects. The most notable of these projects are the Petronas Twin Towers (at the time the tallest building in the world), KL International Airport (KLIA), North-South Expressway, the Sepang F1 Circuit, the Multimedia Super Corridor (MSC), the Bakun hydroelectric dam and Putrajaya, the new federal administrative capital.

In the late-1990s, Malaysia was shaken by the Asian financial crisis as well as political unrest caused by the sacking of the deputy prime minister Dato' Seri Anwar Ibrahim.[45] In 2003, Dr Mahathir, Malaysia's longest serving prime minister, retired in favour of his deputy, Abdullah Ahmad Badawi. On November 2007, Malaysia was rocked by two anti-government rallies. The 2007 Bersih Rally numbering 40,000 strong was held in Kuala Lumpur on 10 November campaigning for electoral reform. It was precipitated by allegations of corruption and discrepancies in the Malaysian election system that heavily favour the ruling political party, Barisan Nasional, which has been in power since Malaysia achieved its independence in 1957.[46] Another rally was held on 25 November in the Malaysian capital lead by HINDRAF. The rally organiser, the Hindu Rights Action Force, had called the protest over alleged discriminatory policies that favour ethnic Malays. The crowd was estimated to be between 5,000 and 30,000.[47] In both cases the government and police were heavy handed and tried to prevent the gatherings from taking place. In 16 October 2008, HINDRAF was banned as the government labelled the organisation as "a threat to national security".[48]

Government and politics

Current Prime minister of Malaysia, Najib Tun Razak
PM's office, Putrajaya

Malaysia is a federal constitutional elective monarchy. The federal head of state of Malaysia is the Yang di-Pertuan Agong, commonly referred to as the King of Malaysia. The Yang di-Pertuan Agong is elected to a five-year term among the nine hereditary Sultans of the Malay states; the other four states, which have titular Governors, do not participate in the selection.[49]

The system of government in Malaysia is closely modeled on that of Westminster parliamentary system, a legacy of British colonial rule. In practice however, more power is vested in the executive branch of government than in the legislative, and the judiciary has been weakened by sustained attacks by the government during the Mahathir era. Since independence in 1957, Malaysia has been governed by a multi-party coalition known as the Barisan Nasional (formerly known as the Alliance).[50]

Legislative power is divided between federal and state legislatures. The bicameral parliament consists of the lower house, the House of Representatives or Dewan Rakyat (literally the "Chamber of the People") and the upper house, the Senate or Dewan Negara (literally the "Chamber of the Nation").[51][52][53] The 222-member House of Representatives are elected from single-member constituencies that are drawn based on population for a maximum term of five years. All 70 Senators sit for three-year terms; 26 are elected by the 13 state assemblies, two representing the federal territory of Kuala Lumpur, one each from federal territories of Labuan and Putrajaya, and 40 are appointed by the king. Besides the Parliament at the federal level, each state has a unicameral state legislative chamber (Malay: Dewan Undangan Negeri) whose members are elected from single-member constituencies. Parliamentary elections are held at least once every five years, with the last general election being in March 2008.[50] Registered voters of age 21 and above may vote for the members of the House of Representatives and in most of the states, the state legislative chamber as well. Voting is not compulsory.[54]

Executive power is vested in the cabinet led by the prime minister; the Malaysian constitution stipulates that the prime minister must be a member of the lower house of parliament who, in the opinion of the Yang di-Pertuan Agong, commands a majority in parliament.[55] The cabinet is chosen from among members of both houses of Parliament and is responsible to that body.[56]

State governments are led by Chief Ministers (Menteri Besar in Malay states or Ketua Menteri in states without hereditary rulers), who is a state assembly member from the majority party in the Dewan Undangan Negeri. In each of the states with a hereditary ruler, the Chief Minister is required to be a Malay Muslim, although this rule is subject to the rulers' discretion.

Administrative divisions

Administratively, Malaysia consists of 13 states (11 in peninsular Malaysia and 2 in Malaysian Borneo) and 3 federal territories.

Geography

Map of peninsular Malaysia and East Malaysia (Malaysian Borneo).
Beach scenery of Pulau Tioman.

Malaysia is the 43rd most populated country and the 66th largest country by total land area in the world, with a population of about 27 million and a land area of over 320,000 km2 respectively. It is comparable in population to Saudi Arabia and Venezuela, and is roughly similar in size to Norway and Vietnam, along with the U.S. state of New Mexico.

The two distinct parts of Malaysia, separated from each other by the South China Sea, share a largely similar landscape in that both West and East Malaysia feature coastal plains rising to often densely forested hills and mountains, the highest of which is Mount Kinabalu at 4,095.2 metres (13,436 ft) on the island of Borneo. The local climate is equatorial and characterised by the annual southwest (April to October) and northeast (October to February) monsoons.

Kota Kinabalu, capital of East Malaysian state of Sabah is located 1,600 kilometres (990 mi) east across the South China Sea from Kuala Lumpur.

Tanjung Piai, located in the southern state of Johor, is the southernmost tip of continental Asia.[57][58] The Strait of Malacca, lying between Sumatra and Peninsular Malaysia, is arguably the most important shipping lane in the world.[59]

Kuala Lumpur is the official capital and largest city of Malaysia. Putrajaya on the other hand, is considered the administrative capital for the federal government of Malaysia. Although many executive and judicial branches of the federal government have moved there (to ease growing congestion within Kuala Lumpur), Kuala Lumpur is still recognised as the legislative capital of Malaysia since it houses the seat of the Parliament of Malaysia. It is also the main commercial and financial centre of the country.

Other major cities include George Town, Ipoh, Johor Bahru, Kuching, Kota Kinabalu, Miri, Alor Star, Malacca Town, Kuala Terengganu, Kota Bharu, Kuantan and Petaling Jaya.

Natural resources

Malaysia is well-endowed with natural resources in areas such as agriculture, forestry and minerals. In terms of agriculture, Malaysia is one of the top exporters of natural rubber and palm oil, which together with sawn logs and sawn timber, cocoa, pepper, pineapple and tobacco dominate the growth of the sector. Palm oil is also a major generator of foreign exchange.

Rolling tea fields in Malaysia.

Regarding forestry resources, it is noted that logging only began to make a substantial contribution to the economy during the 19th century. Today, an estimated 59% of Malaysia remains forested. The rapid expansion of the timber industry, particularly after the 1960s, has brought about a serious erosion problem in the country's forest resources. However, in line with the Government's commitment to protect the environment and the ecological system, forestry resources are being managed on a sustainable basis and accordingly the rate of tree felling has been on the decline.

In addition, substantial areas are being silviculturally treated and reforestation of degraded forestland is being carried out. The Malaysian government provide plans for the enrichment of some 312.30 square kilometers (120.5 sq mi) of land with rattan under natural forest conditions and in rubber plantations as an inter crop. To further enrich forest resources, fast-growing timber species such as meranti tembaga, merawan and sesenduk are also being planted. At the same time, the cultivation of high-value trees like teak and other trees for pulp and paper are also encouraged. Rubber, once the mainstay of the Malaysian economy, has been largely replaced by oil palm as Malaysia's leading agricultural export.

Tin and petroleum are the two main mineral resources that are of major significance in the Malaysian economy. Malaysia was once the world's largest producer of tin until the collapse of the tin market in the early-1980s. In the 19th and 20th centuries, tin played a predominant role in the Malaysian economy. It was only in 1972 that petroleum and natural gas took over from tin as the mainstay of the mineral extraction sector. Meanwhile, the contribution by tin has declined. Petroleum and natural gas discoveries in oil fields off Sabah, Sarawak and Terengganu have contributed much to the Malaysian economy. Other minerals of some importance or significance include copper, bauxite, iron-ore and coal together with industrial minerals like clay, kaolin, silica, limestone, barite, phosphates and dimension stones such as granite as well as marble blocks and slabs. Small quantities of gold are produced.

In 2004, a minister in the Prime Minister's Department, Mustapa Mohamed, revealed that Malaysia's oil reserves stood at 4.84 billion barrels (769,000,000 m3) while natural gas reserves increased to 89 trillion cubic feet (2,500 km3). This was an increase of 7.2%.[citation needed] As of 1 January 2007, Petronas reported that oil and gas reserve in Malaysia amounted to 20.18 billion barrels (3.208×109 m3) equivalent.[60]

The government estimates that at current production rates Malaysia will be able to produce oil up to 18 years and gas for 35 years. In 2004, Malaysia is ranked 24th in terms of world oil reserves and 13th for gas. 56% of the oil reserves exist in the Peninsula while 19% exist in East Malaysia. The government collects oil royalties of which 5% are passed to the states and the rest retained by the federal government.[citation needed]

Demographics

Malaysia's population comprises many ethnic groups, with the Malays at 50.4% making up the majority and other bumiputra/indigenous (Aborigine) groups in Sabah and Sarawak at 11%[61] of the population. By constitutional definition, Malays are Muslims who practice Malay customs (adat) and culture. Therefore, technically, a Muslim of any race who practices Malay customs and culture can be considered a Malay and have equal rights when it comes to Malay rights as stated in the constitution. Non-Malay bumiputra groups make up more than half of the state of Sarawak's population (of which 30% are Ibans), and close to 60% of Sabah's population (of which 18% are Kadazan-Dusuns, and 17% are Bajaus).[61] There also exist aboriginal groups in much smaller numbers on the Peninsula, where they are collectively known as Orang Asli.

23.7% of the population are Malaysians of Chinese descent, while Malaysians of Indian descent comprise 7.1% of the population.[61] The majority of the Indian community are Tamils but various other groups are also present, including Malayalis, Punjabis and Gujaratis. Other Malaysians also include those whose origin, inter alia, can be traced to the Middle East, Thailand and Indonesia. Europeans and Eurasians include British who settled in Malaysia since colonial times, and a strong Kristang community in Malacca. A small number of Cambodians and Vietnamese settled in Malaysia as Vietnam War refugees.

The population distribution is highly uneven, with some 20 million residents concentrated on the Malay Peninsula, while East Malaysia is relatively less populated. Due to the rise in labour intensive industries, Malaysia has 10 to 20% foreign workers with the uncertainty due in part to the large number of illegal workers. There are a million legal foreign workers and perhaps another million unauthorised foreigners. The state of Sabah alone has nearly 25% of its 2.7 million population listed as illegal foreign workers in the last census. However, this figure of 25% is thought to be less than half the figure speculated by NGOs.[62]

Additionally, according to the World Refugee Survey 2008, published by the U.S. Committee for Refugees and Immigrants, Malaysia hosts a population of refugees and asylum seekers numbering approximately 155,700. Of this population, approximately 70,500 refugees and asylum seekers are from the Philippines, 69,700 from Burma, and 21,800 from Indonesia.[63] The U.S. Committee for Refugees and Immigrants named Malaysia as one of the Ten Worst Places for Refugees on account of the country's discriminatory practices toward refugees. Malaysian officials are reported to have turned deportees directly over to human smugglers in 2007, and Malaysia employs the RELA, a volunteer militia, to enforce its immigration law.[63]

Largest Cities of Malaysia
City State Population City State Population
1 Kuala Lumpur Federal Territory 1,809,699 Kuala Lumpur
Kuala Lumpur
Johor Bahru
Johor Bahru
8 Shah Alam Selangor 658,562
2 Johor Bahru Johor 1,370,738 9 Kota Kinabalu Sabah 579,304
3 Subang Jaya Selangor 1,321,672 10 Kota Bharu Kelantan 577,301
4 Klang Selangor 1,055,207 11 Petaling Jaya Selangor 543,415
5 Ampang Jaya Selangor 756,309 12 Tebrau Johor 525,351
6 Ipoh Perak 710,798 13 Cheras Selangor 515,961
7 Kuching Sarawak 658,562 14 Sandakan Sabah 479,121


Religion

Masjid Ubudiah is a well-known historical mosque in Kuala Kangsar.
The national mosque of Malaysia, Masjid Negara.

Malaysia is a multi-religious society and Islam is the official religion. According to the Population and Housing Census 2000 figures, approximately 60.4 percent of the population practiced Islam; 19.2 percent Buddhism; 9.1 percent Christianity; 6.3 percent Hinduism; and 2.6 percent traditional Chinese religions. The remaining was accounted for by other faiths, including Animism, Folk religion, Sikhism and other faiths while 1.1% either reported as having no religion or did not provide any information.[64][65]

All ethnic Malays are considered Muslim (100%) as defined by Article 160 of the Constitution of Malaysia.[66] Additional statistics from the 2000 Census indicate that ethnic Chinese are predominantly Buddhist (75.9%), with significant numbers of adherents following Taoism (10.6%) and Christianity (9.6%). The majority of ethnic Indians follow Hinduism (84.5%), with a significant minority identifying as Christians (7.7%) and Muslims (3.8%). Christianity is the predominant religion of the non-Malay bumiputra community (50.1%) with an additional 36.3% identifying as Muslims and 7.3% identifying as adherents to what is officially classified as folk religion.[65]

The Malaysian constitution theoretically guarantees religious freedom. Non-Muslims experience restrictions in activities such as construction of religious buildings and the celebration of certain religious events in some states.[67][68] Muslims are obliged to follow the decisions of Syariah courts when it comes to matters concerning their religion. The jurisdiction of Syariah court is limited only to Muslims over matters of Faith and Obligations as a Muslim, which includes marriage, inheritance, apostasy, religious conversion, and custody among others. No other criminal or civil offenses are under the jurisdiction of the Syariah courts, which have a similar hierarchy to the Civil Courts. Despite being the supreme courts of the land, the Civil Courts (including the Federal Court, the highest court in Malaysia) in principle cannot overrule any decision made by the Syariah Courts; and presently are reluctant to preside over cases involving Islam in any nature or question or challenge the authority of the Syariah courts. This has caused notable problems, particularly involving civil cases between Muslims and non-Muslims, in which civil courts have ordered non-Muslims to seek recourse from the Syariah Courts.

Education

Malay College Kuala Kangsar (MCKK) is one of the earliest boarding schools established in British Malaya.

Education in Malaysia is monitored by the federal government Ministry of Education.[69]

Most Malaysian children start schooling between the ages of three to six, in kindergarten. Most kindergartens are run privately, but there are a few government-run kindergartens.

Primary education

Children begin primary schooling at the age of seven for a period of six years. There are two major types of government-operated or government-assisted primary schools. The vernacular schools (Sekolah Jenis Kebangsaan) use either Chinese or Tamil as the medium of teaching. Before progressing to the secondary level of education, pupils in Year 6 are required to sit for the Primary School Achievement Test (Ujian Pencapaian Sekolah Rendah, UPSR). A programme called First Level Assessment (Penilaian Tahap Satu, PTS) was used to measure the ability of bright pupils, and to allow them to move from Year 3 to 5, skipping Year 4.[70] However, this programme was abolished in 2001.

Secondary education

Secondary education in Malaysia is conducted in secondary schools (Sekolah Menengah Kebangsaan) for five years. National secondary schools use Malay as the main medium of instruction. The only exceptions are the Mathematics and Science subjects as well as languages other than Malay, however this was only implemented in the year 2003, and before that all non-language subjects were taught in Malay. At the end of Form Three, which is the third year, students are evaluated in the Lower Secondary Assessment (Penilaian Menengah Rendah, PMR). In the final year of secondary education (Form Five), students sit for the Malaysian Certificate of Education (Sijil Pelajaran Malaysia, SPM) examination, which is equivalent to the former British Ordinary or 'O' Levels. The oldest school in Malaysia is Penang Free School, also the oldest school in South East Asia.

Malaysian national secondary schools are sub-divided into several types, namely National Secondary School (Sekolah Menengah Kebangsaan), Religious Secondary School (Sekolah Menengah Agama), National-Type Secondary School (Sekolah Menengah Jenis Kebangsaan) which is also referred as Mission Schools, Technical Schools (Sekolah Menengah Teknik), Residential Schools and MARA Junior Science College (Maktab Rendah Sains MARA).

There are also 60 Chinese Independent High Schools in Malaysia, where most subjects are taught in Chinese. Chinese Independent High Schools are monitored and standardised by the United Chinese School Committees' Association of Malaysia (UCSCAM, more commonly referred to by its Chinese name, Dong Zong 董总), however, unlike government schools, every independent school is free to make its own decisions. Studying in independent schools takes 6 years to complete, divided into Junior Level (3 years) and Senior Level (3 years). Students will sit for a standardised test conducted by UCSCAM, which is known as the Unified Examination Certificate (UEC) in Junior Middle 3 (equivalent to PMR) and Senior Middle 3 (equivalent to A level). A number of independent schools conduct classes in Malay and English in addition to Chinese, enabling the students to sit for the PMR and SPM as well.

Tertiary education

Before the introduction of the matriculation system, students aiming to enter public universities had to complete an additional 18 months of secondary schooling in Form Six and sit for the Malaysian Higher School Certificate (Sijil Tinggi Persekolahan Malaysia, STPM); equivalent to the British Advanced or 'A' levels. Since the introduction of the matriculation programme as an alternative to STPM in 1999, students who completed the 12-month programme in matriculation colleges (kolej matrikulasi in Malay) can enrol in local universities. However, in the matriculation system, only 10% of the places are open to non-Bumiputra students while the rest are reserved for Bumiputra students.

There are public universities such as University of Malaya, Universiti Sains Malaysia, Universiti Putra Malaysia Universiti Teknologi Malaysia, International Islamic University Malaysia (IIUM), Universiti Teknologi Mara, Universiti Utara Malaysia, Universiti Tunku Abdul Rahman and Universiti Kebangsaan Malaysia. Private universities are also gaining enough reputation for international quality education and many students from all over the world are attracted to these universities. Such as Multimedia University, Universiti Teknologi Petronas etc. In addition, four international reputable universities have set up their branch campuses in Malaysia since 1998. A branch campus can be seen as an ‘offshore campus’ of the foreign university, which offers the same courses and awards as the main campus. Both local and international students can acquire these identical foreign qualifications in Malaysia at a lower fee. The foreign university branch campuses in Malaysia are: Monash University Malaysia Campus, Curtin University of Technology Sarawak Campus, Swinburne University of Technology Sarawak Campus and University of Nottingham Malaysia Campus.

Students also have the option of enrolling in private tertiary institutions after secondary studies. Most institutions have educational links with overseas universities especially in the United States, the United Kingdom and Australia, allowing students to spend a portion of their course duration abroad as well as getting overseas qualifications. One such example is SEGi College which partnered with University of Abertay Dundee.[71] Malaysian students abroad study mostly in East Asia, Middle East, Oceania, Northern America and Western Europe.

International schools

In addition to the Malaysian National Curriculum, Malaysia has many international schools. International schools offer students the opportunity to study the curriculum of another country. These schools mainly cater to the growing expatriate population in the country. International schools include: the Australian International School, Malaysia (Australian curriculum), The Alice Smith School (British Curriculum), elc International school (British Curriculum), The Garden International School (British Curriculum), Lodge International School (British Curriculum), The International School of Kuala Lumpur (International Baccalaureate and American Curriculum), The Japanese School of Kuala Lumpur (Japanese Curriculum), The Chinese Taipei School, Kuala Lumpur and The Chinese Taipei School, Penang (Taiwanese Curriculum), The International School of Penang (International Baccalaureate and British Curriculum), Lycée Français de Kuala Lumpur (French Curriculum) amongst others.

Healthcare

The Malaysian government places importance on the expansion and development of health care, putting 5% of the government social sector development budget into public health care—an increase of more than 47% over the previous figure. This has meant an overall increase of more than RM 2 billion. With a rising and aging population, the Government wishes to improve in many areas including the refurbishment of existing hospitals, building and equipping new hospitals, expansion of the number of polyclinics, and improvements in training and expansion of telehealth. Over the last couple of years, the Malaysian Health Ministry has increased its efforts to overhaul the systems and attract more foreign investment.

The country generally has an efficient and widespread system of health care. It implements a universal healthcare system, and co-exists with private healthcare system. Infant mortality rate – a standard in determining the overall efficiency of healthcare – in 2005 was 10, comparing favourably with the United States and western Europe. Life expectancy at birth in 2005 was 74 years.

The Malaysian health care system requires doctors to perform a compulsory three years service with public hospitals to ensure the manpower of these hospitals is maintained. Recently foreign doctors have also been encouraged to take up employment here. There is still, however, a compound shortage of medical workforce, especially that of highly trained specialists resulting in certain medical care and treatment only available in large cities. Recent efforts to bring many facilities to other towns have been hampered by lack of expertise to run the available equipment made ready by investments.

The majority of private hospitals are in urban areas and, are very dense, unlike many of the public hospitals, are equipped with the latest diagnostic and imaging facilities. Private hospitals have not generally been seen as an ideal investment—it has often taken up to ten years before companies have seen any profits. However, the situation has now changed and companies are now looking into this area again, particularly in view of the increasing interest by foreigners in coming to Malaysia for medical care and the recent government focus to develop the health tourism industry.[72]

Citizenship

Most Malaysians are granted citizenship by lex soli.[73] Citizenship in the states of Sabah and Sarawak in Malaysian Borneo are distinct from citizenship in Peninsular Malaysia for immigration purposes. Every citizen is issued a biometric smart chip identity card, known as MyKad, at the age of 12, and must carry the card at all times.[74]

Economy

Rubber latex.

The Malay Peninsula and indeed Southeast Asia has been a centre of trade for centuries. Various items such as porcelain and spices were actively traded even before Malacca and Singapore rose to prominence.

In the 17th century, they were found in several Malay states. Later, as the British started to take over as administrators of Malaya, rubber and palm oil trees were introduced for commercial purposes. Over time, Malaysia became the world's largest major producer of tin, rubber, and palm oil.[75] These three commodities, along with other raw materials, firmly set Malaysia's economic tempo well into the mid-20th century.

Kuala Lumpur Stock Exchange.

Instead of relying on the local Malays as a source of labour, the British brought in Chinese and Indians to work in on the mines, plantations and fill up the void in professional expertise. Although many of them returned to their respective home countries after their agreed tenure ended, some remained in Malaysia and settled permanently.

As Malaya moved towards independence, the government began implementing economic five-year plans, beginning with the First Malayan Five Year Plan in 1955. Upon the establishment of Malaysia, the plans were re-titled and renumbered, beginning with the First Malaysia Plan in 1965.

In the 1970s, Malaysia began to imitate the four Asian Tiger economies (Taiwan, South Korea, Hong Kong and Singapore) and committed itself to a transition from being reliant on mining and agriculture to an economy that depends more on manufacturing. With Japanese investment, heavy industries flourished and in a matter of years, Malaysian exports became the country's primary growth engine[citation needed]. Malaysia consistently achieved more than 7% GDP growth along with low inflation in the 1980s and the 1990s.[76]. Today, Malaysia is one of the world's largest computer hard disk manufacturing sites.

During the same period, the government tried to eradicate poverty with the controversial New Economic Policy (NEP), after the May 13 Incident of racial rioting in 1969.[43] Its main objective was the elimination of the association of race with economic function, and the first five-year plan to begin implementing the NEP was the Second Malaysia Plan. The success or failure of the NEP is the subject of much debate, although it was officially retired in 1990 and replaced by the National Development Policy (NDP). Recently much debate has surfaced once again concerning the results and relevance of the NEP. Some have argued that the NEP has indeed successfully created a Middle/Upper Class of Malay businesspersons and professionals. Despite some improvement in the economic power of Malays in general, the Malaysian government maintains a policy of discrimination that favours ethnic Malays over other races—including preferential treatment in employment, education, scholarships, business, access to cheaper housing and assisted savings.[77] This special treatment has sparked envy and resentment between non-Malays and Malays.

The Chinese control of the locally-owned sector of the country's economy, meanwhile, has been ceded largely in favour of the Bumiputras/Malays in many essential or strategic industries such as petroleum retailing, transportation, agriculture, et cetera. The majority of professionals per capita are still dominated by the Indians in the country nevertheless. The rapid economic boom led to a variety of supply problems, however. Labour shortages soon resulted in an influx of millions of foreign workers, many illegal. Cash-rich PLCs and consortia of banks eager to benefit from increased and rapid development began large infrastructure projects. This all ended when the Asian Financial Crisis hit in the fall of 1997, delivering a massive shock to Malaysia's economy.

As with other countries affected by the crisis, there was speculative short-selling of the Malaysian currency, the ringgit. Foreign direct investment fell at an alarming rate and, as capital flowed out of the country, the value of the ringgit dropped from MYR 2.50 per USD to, at one point, MYR 4.80 per USD. The Kuala Lumpur Stock Exchange's composite index plummeted from approximately 1300 points to around 400 points in a matter of weeks. After the controversial sacking of finance minister Anwar Ibrahim, a National Economic Action Council was formed to deal with the monetary crisis. Bank Negara imposed capital controls and pegged the Malaysian ringgit at 3.80 to the US dollar. Malaysia refused economic aid packages from the International Monetary Fund (IMF) and the World Bank, however, surprising many analysts.

In March, 2005, the United Nations Conference on Trade and Development (UNCTAD) published a paper on the sources and pace of Malaysia's recovery, written by Jomo K.S. of the applied economics department, University of Malaya, Kuala Lumpur. The paper concluded that the controls imposed by Malaysia's government neither hurt nor helped recovery. The chief factor was an increase in electronics components exports, which was caused by a large increase in the demand for components in the United States, which was caused, in turn, by a fear of the effects of the arrival of the year 2000 (Y2K) upon older computers and other digital devices.

However, the post Y2K slump of 2001 did not affect Malaysia as much as other countries. This may have been clearer evidence that there are other causes and effects that can be more properly attributable for recovery. One possibility is that the currency speculators had run out of finance after failing in their attack on the Hong Kong dollar in August 1998 and after the Russian ruble collapsed. (See George Soros)

Regardless of cause/effect claims, rejuvenation of the economy also coincided with massive government spending and budget deficits in the years that followed the crisis. Later, Malaysia enjoyed faster economic recovery compared to its neighbours. The country has recovered to the levels of the pre-crisis era - as an example, the KLCI Composite Index hit an all time high of 1,386 on 20 June 2007 which is approximately 100 points higher than the pre-crisis record of 1,275 in 1993.

Petronas Towers in Kuala Lumpur. Malaysia's rapid economic growth and prosperity is reflected by the Petronas Towers, the headquarters of the national oil giant.

While the pace of development today is not as rapid, it is seen to be more sustainable. Although the controls and economic housekeeping may or may not have been the principal reasons for recovery, there is no doubt that the banking sector has become more resilient to external shocks. The current account has also settled into a structural surplus, providing a cushion to capital flight. Asset prices are generally back to their pre-crisis heights, despite the effects of the global financial crisis. Malaysia is also the world's largest Islamic banking and financial centre.

The fixed exchange rate was abandoned in July 2005 in favour of a managed floating system within an hour of China's announcing of the same move.[78] In the same week, the ringgit strengthened a percent against various major currencies and was expected to appreciate further. As of December 2005, however, expectations of further appreciation were muted as capital flight exceeded USD 10 billion.[79] According to Bank Negara's published figures, Malaysia's foreign exchange reserves increased steadily since the initial capital flight, from USD75.2 billion as at 15 July 2005 (just before the peg was removed) to peak at USD125.7 billion as at 31 July 2008, a few months before the global credit crisis that started in September 2008. As at 29 May 2009, the reserves stood at USD88.3 billion.

In September, 2005, Sir Howard J. Davies, director of the London School of Economics, at a meeting in Kuala Lumpur, cautioned Malaysian officials that if they want a flexible capital market, they will have to lift the ban on short-selling put into effect during the crisis. In March 2006, Malaysia removed the ban on short selling.[80] It is however interesting to note that in response to the global financial crisis, some of the measures taken by the Malaysian government in response to the Asian crisis, such as the ban on short selling, were swiftly adopted by the very countries that had previously been critical of the Malaysian response.

Malaysia is also one of the region's top education and healthcare destinations. Malaysia is recognised as a newly industrialised country.[14][15][81] In 2008, Malaysia GDP per capita (nominal) was USD8,141, ranking it no. 65 globally. By comparison, Thailand's GDP was USD4,115 (No. 92) and Indonesia's was USD2,246 (No. 116).

Infrastructure

The Damansara Link section of Klang Valley's Sprint Expressway.
See also: Buildings and structures in Kuala Lumpur and Buildings and structures in Putrajaya

Malaysia has extensive roads that connect all major cities and towns on the western coast of peninsular Malaysia. The total length of the Malaysian expressway network is 1,499.5 kilometres (931.7 mi) and another 219.3 kilometres (136.3 mi) is still under construction. The network connects all major cities and conurbations such as Klang Valley, Johor Bahru and Penang to each other. The major motorway (E1 and E2, the E1 is the section North of KL while the E2 is the Southern section), spans from the northern and the southern tips of peninsular Malaysia at Bukit Kayu Hitam and Johor Bahru respectively. It is a part of the Asian Highway Network, which also connects into Thailand and Singapore.

Quay cranes at the Northport in Port Klang, Malaysia.

Roads in the East Malaysia and the eastern coast of peninsular Malaysia are still relatively undeveloped. Those are highly curved roads passing through mountainous regions and many are still unsealed, gravel roads. This has resulted in the continued use of rivers and the necessary use of airplanes as the main or alternative mode of transportation for the interior residents.

Train service in West Malaysia is operated by the Keretapi Tanah Melayu (Malayan Railways) and has extensive railways that connect all major cities and towns on the peninsula, which also extends to Singapore. There is also a short railway in Sabah operated by Sabah State Railway that mainly carries freight.

There are seaports throughout the country. The major ports are Port Klang and Port of Tanjung Pelepas in Johor. Other important ports can be found in Tanjung Kidurong, Kota Kinabalu, Kuching, Kuantan, Pasir Gudang, Penang, Miri, Sandakan and Tawau.

Airports are also found throughout the country. Kuala Lumpur International Airport (KLIA) is the main airport of the country. Other important airports include Kota Kinabalu International Airport, Penang International Airport, Kuching International Airport, Langkawi International Airport, and Senai International Airport. There are also airports in smaller towns, as well as small domestic airstrips in rural Sabah and Sarawak. There are daily flight services between West and East Malaysia, which is the only convenient option for passengers travelling between the two parts of the country. Malaysia is the home of the first low-cost carrier in the region, AirAsia. It has Kuala Lumpur as its hub and maintains flights to Southeast Asia and China as well. In Kuala Lumpur, it operates out of the Low Cost Carrier Terminal (LCCT) in KLIA.

The intercity telecommunication service is provided on peninsular Malaysia mainly by microwave radio relay. International telecommunications are provided through submarine cables and satellite. One of the largest and most significant telecommunication companies in Malaysia is Telekom Malaysia (TM), providing products and services from fixed line, mobile as well as dial-up and broadband Internet access service. It has the near-monopoly of fixed line phone service in the country.

In December 2004, Energy, Water and Communications Minister Datuk Seri Dr Lim Keng Yaik reported that only 0.85% or 218,004 people in Malaysia used broadband services. However, these values are based on subscriber number, whilst household percentage can reflect the situation more accurately. Lim Keng Yaik had urged local telecommunication companies and service provider to open up the last mile and lower prices to benefit the users. Malaysia has set a national broadband plan in 2004 which set a target of 50% household penetration by 2010. In the 1st quarter of 2009, Malaysia's household broadband penetration had reached 22.9%.

Culture

A cook making a murtabak, a type of pancake filled with eggs, small chunks of meat and onions, in Kuala Lumpur.

Malaysia is a multi-ethnic, multi-cultural and multilingual society. The population as of February 2007 is 26.6 million consisting of 62% Bumiputeras (including Malays), 24% Chinese, 8% Indians, with other minorities and indigenous peoples (Dept of Stats. Malaysia). Ethnic tensions have been volatile in recent months in tandem with the rising temperature of the political scenario in the country.[82]

The Malays, who form the largest community, are defined as Muslims in the Constitution of Malaysia. The Malays play a dominant role politically and are included in a grouping identified as bumiputra. Their native language is Malay (Bahasa Melayu). Malay is the national language of the country[21], but English is widely spoken in major towns and cities across the country.

Hindus in Kuala Lumpur.

In the past, Malays wrote in Sanskrit or using Sanskrit-based alphabets[citation needed]. After the 15th century, Jawi (a script based on Arabic) became popular.[citation needed] Over time, romanised script overtook Sanskrit and Jawi as the dominant script. This was largely due to the influence of the colonial education system, which taught children in romanised writing rather than in Arabic script.[citation needed]

The largest non-Malay indigenous tribe is the Iban of Sarawak, who number over 600,000. Some Iban still live in traditional jungle villages in long houses along the Rajang and Lupar rivers and their tributaries, although many have moved to the cities. The Bidayuhs, numbering around 170,000, are concentrated in the southwestern part of Sarawak. The largest indigenous tribe in Sabah is the Kadazan. They are largely Christian subsistence farmers. The 140,000 Orang Asli, or aboriginal peoples, comprise a number of different ethnic communities living in peninsular Malaysia. Traditionally nomadic hunter/gatherers and agriculturalists, many have been sedentarised and partially absorbed into modern Malaysia.

The Chinese population in Malaysia are mostly Buddhist (of Mahayana sect) or Taoist, although some of the younger generations are choosing Christianity as their religion. The Chinese community in Malaysia speak a variety of Chinese dialects including Mandarin Chinese, Hokkien, Cantonese, Hakka, and Teochew. A large majority of Chinese in Malaysia, especially those from the larger cities such as Kuala Lumpur, Petaling Jaya, Ipoh, Klang and Penang speak decent English as well. There has also been an increasing number of the present generation Chinese who consider English as their first language. The Chinese have historically been dominant in the Malaysian business and commerce community.

The Indians in Malaysia are mainly Hindu Tamils from southern India whose native language is Tamil, there are also other Indian communities which is Telugu, Malayalam and Hindi-speaking, living mainly in the larger towns on the west coast of the peninsula. Many middle to upper-middle class Indians in Malaysia also speak English as a first language. A vigorous 200,000-strong Tamil Muslim community also thrives as an independent subcultural group. There are also prevalent Tamil Christian communities in major cities and towns. Most Indians originally migrated from India as traders, teachers or other skilled workers. A larger number were also part of the forced migrations from India by the British during colonial times to work in the plantation industry.[83][84] There is also a sizable Sikh community in Malaysia of over 100,000. The Sikhs were brought to Malaya to work as police, soldiers and jagas (security guards).

Penang Rojak in Malaysia.

Eurasians, Cambodians, Vietnamese, Thais, Bugis, Javanese and indigenous tribes make up the remaining population. A small number of Eurasians, of mixed Portuguese and Malay descent, speak a Portuguese-based creole, called Papiá Kristang. There are also Eurasians of mixed Filipino and Spanish descent, mostly in Sabah. Descended from immigrants from the Philippines, some speak Chavacano, the only Spanish-based creole language in Asia. Cambodians and Vietnamese are mostly Buddhists (Cambodians of Theravada sect and Vietnamese, Mahayana sect). Thai Malaysians have been populating a big part of the northern peninsular states of Perlis, Kedah, Penang, Perak, Kelantan and Terengganu. Besides speaking Thai, most of them are Buddhists, celebrate Songkran (Water festival) and can speak Hokkien, but some of them are Muslim and speak the Kelantanese Malay Dialect. Bugis and Javanese make up a part of the population in Johore. In addition, there have been many foreigners and expatriates who have made Malaysia their second home, also contributing to Malaysia's population.

Chinese and Islamic forms heavily influence Malaysian traditional music. The music is based largely around the gendang (drum), but includes other percussion instruments (some made of shells); the rebab, a bowed string instrument; the serunai, a double-reed oboe-like instrument; flutes, and trumpets. The country has a strong tradition of dance and dance dramas, some of Thai, Indian and Portuguese origin. In recent years, dikir barat has grown in popularity, and the government has begun to promote it as a national cultural icon.[85] Other artistic forms were also shared with and influenced by neighbouring Indonesia, include wayang kulit (shadow puppet theatre), silat (a stylised martial art) and crafts such as batik, weaving, including the ceremonial cloth pua kumbu, and silver and brasswork.

Holidays

Typical festive fare during Hari Raya Puasa or Hari Raya Haji (clockwise from bottom left): beef soup, ketupat (compressed rice cubes), beef rendang and sayur lodeh.

Malaysians observe a number of holidays and festivities throughout the year. Some holidays are federal gazetted public holidays and some are public holidays observed by individual states. Other festivals are observed by particular ethnic or religion groups, but are not public holidays.

The most celebrated holiday is the "Hari Kebangsaan" (Independence Day), otherwise known as "Merdeka" (Freedom), on 31 August commemorating the independence of the Federation of Malaya in 1957, while Malaysia Day is only celebrated in the state of Sabah on 16 September to commemorate the formation of Malaysia in 1963. Hari Merdeka, as well as Labour Day (1 May), the King's birthday (first Saturday of June) and some other festivals are federal gazetted public holidays.

Muslims in Malaysia celebrate Muslim holidays. The most celebrated festival, Hari Raya Puasa (also called Hari Raya Aidilfitri) is the Malay translation of Eid al-Fitr. It is generally a festival honoured by the Muslims worldwide marking the end of Ramadan, the fasting month. The sight of the new moon determines the end of Ramadan. This determines the new month, therefore the end of the fasting month. In addition to Hari Raya Puasa, they also celebrate Hari Raya Haji (also called Hari Raya Aidiladha, the translation of Eid ul-Adha), Awal Muharram (Islamic New Year) and Maulidur Rasul (Birthday of the Prophet).

Chinese in Malaysia typically celebrate festivals that are observed by Chinese around the world. Chinese New Year is the most celebrated among the festivals which lasts for fifteen days and ends with Chap Goh Mei(十五瞑). Other festivals celebrated by Chinese are the Qingming Festival, the Dragon Boat Festival and the Mid-Autumn Festival. In addition to traditional Chinese festivals, Buddhists Chinese also celebrate Vesak.

The majority of Indians in Malaysia are Hindus and they celebrate Deepavali, the festival of light, while Thaipusam is a celebration which pilgrims from all over the country flock to Batu Caves. Apart from the Hindus, Sikhs celebrate the Vaisakhi, the Sikh New Year.

Other festivals such as Good Friday (East Malaysia only), Christmas, Hari Gawai of the Ibans (Dayaks), Pesta Menuai (Pesta Kaamatan) of the Kadazan-Dusuns are also celebrated in Malaysia