Capital: Kuala Lumpur
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Capital: Kuala Lumpur Print | Close |
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Introduction Malaysia is one of South East Asia's major tourist destinations and is the world's biggest exporter of palm oil. The country, formed in 1963, has a multi-ethnic, multi-religious population with a Muslim majority. It has large supplies of natural gas and oil.
Issues
History The meeting point of a number of cultures over the centuries, the Malay peninsula was divided into British and Dutch spheres in 1824. Two years later, Britain began integrating the peninsula, incorporating Singapore, Malacca and Penang into the Straits Settlements. Four other states were later incorporated, forming the Federated Malay States. Britain ruled Malaya until Japan invaded in 1941. Britain returned to Malaya in 1946 and tried unsuccessfully to organise the different Malayan groups into one state, the Malayan Union. It also proposed granting citizenship and equal rights to all Chinese and Indian citizens - a plan that led to the birth of Malayan nationalism. A new political grouping, the United Malaya National Organisation (UMNO) resisted the union. In 1948 Kedah, Perlis, Trengganu, Lelantan, Johore, Malacca and Penang united to form the Federation of Malaya, a partially independent territory under British protection. Singapore, North Borneo and Sarawak became separate crown colonies. The Malayan Communist Party, a largely Chinese movement, soon began rebelling against British rule. A violent uprising ensued, leading to many politically motivated murders, and a state of emergency was imposed in 1948. Malaya was granted independence in August 1957 and the state of emergency was lifted in 1960. Malaysia was established in 1963, incorporating the Federation of Malaya, Singapore, and the former British colonies Sarawak and North Borneo. Problems quickly arose, with friction between Singapore's mostly Chinese population and the mostly Malay federal government of Malaysia. In August 1965, Singapore peacefully left the federation, becoming a republic. However, tensions remained in Malaysia between the Chinese and Malay populations, fuelled by a constitution that gave Malays permanent spots in government, made Islam the national religion and Malay the national language. Racial tension between the two groups reached a climax in 1969. Clashes erupted and hundreds were killed. The violence prompted the declaration of another state of emergency and the suspension of the constitution until 1971. The government tried to address the problems by building national unity. It did so by amending the constitution to make it illegal to question the special rights given to Malays and introducing a policy giving Malays better access to business. In 1981, UMNO's leader, Dr Mahathir Mohamad, became prime minister, guiding the country through almost two decades of mostly strong economic growth. He become known for his outspokeness and criticism of the West - particularly Australia - and other countries in the region, such as Singapore. In September 1998, Mahathir dismissed his deputy and heir apparent, Anwar Ibrahim, who was jailed and charged with corruption. The move led to protests by Anwar's supporters, which were violently suppressed. In 1999 Anwar was sentenced to six years jail for corruption. In 2002 he was given nine years' jail for sodomy. Dr Mahathir retired from politics in October 2003, after 22 years in office, and was replaced by Abdullah Ahmad Badawi. Mr Abdullah's coalition government won a landslide victory in elections in March 2004 and he was sworn in for a new five-year term. The next general election is scheduled for 2009. In September 2004 Mr Anwar was released from prison, after six years in custody, when the country's top court quashed his conviction and nine-year jail sentence for sodomy. The same court later refused to hear a new appeal against his conviction and six-year sentence for corruption. As a result he is barred from holding political office until 2008. Government Malaysia is a parliamentary democracy. It has a federal constitutional monarch with a bicameral federal legislature and unicameral state legislatures. There are two chambers in the federal parliament: the House of Representatives has 192 members with each member sitting for a maximum of five years; the Senate has 69 members, who are elected for a six-year term. The prime minister choses the cabinet. State legislatures only have one parliamentary chamber. Nine of the 13 states have hereditary rulers (eight Sultans and one Rajah) who share the position of King (Agong) on a five-year rotating basis. The King's functions have been purely ceremonial since constitutional amendments made in 1993 and 1994. The governing Barisan Nasional (National Front) coalition comprises the United Malays National Organisation (UMNO), the Malaysian Chinese Association (MCA), Gerakan - a Chinese-based party, and the Malaysian Indian Congress (MIC), plus a number of other parties including some based in Sabah and Sarawak. This coalition, in which UMNO is the dominant voice, has been in power in one form or another since the first elected government in 1955. Economy Malaysia is an export-oriented economy. In the past 25 years, it has rapidly developed from an agriculture-based economy to a manufacturing nation. Manufacturing accounts for about 82 per cent of exports, mostly electrical and electronic products. Malaysia is also the world's leading exporter of palm oil, and is a leading producer of tin and rubber. Other important industries include logging and textiles. About 20 per cent of Malaysia's population relies on subsistence agriculture. Malaysia's strong economic performance in the 1980s and most of the 1990s was built on careful economic planning and management. In the early 1990s, the government began selling off government owned businesses and industries through an ambitious privatisation program. The move attracted strong foreign investment, and strengthened Malaysia's industrialisation process. The government still has significant interests in the top 10 listed companies on the Kuala Lumpur Stock Exchange. Malaysia was severely hit by the 1996-1997 Asian financial crisis. Its large electronics industry was also hit hard by the global economic slump in the information technology sector in 2001. Malaysia is a strong supporter of trade liberalisation. It is an active member of the World Trade Organisation, and regional economic arrangements, including the ASEAN Free Trade Area (AFTA) and APEC. |
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