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Malaysia, constitutional monarchy in Southeast Asia on the South China Sea. Malaysia is divided into two regions, known as West Malaysia and East Malaysia. West Malaysia, also known as Peninsular Malaysia, consists of the southern portion of the Malay Peninsula and nearby islands. Thailand borders West Malaysia on the north, and Singapore lies off the southern coastal tip. East Malaysia occupies the northern section of Borneo Island, as well as offshore islands. East Malaysia shares Borneo with Brunei, which lies on a small section of the northern coast, and with the Kalimantan region of Indonesia, which lies to the south. Malaysia is a federation of 13 states (Johor, Kedah, Kelantan, Melaka, Negeri Sembilan, Pahang, Perak, Pinang, Perlis, Sabah, Sarawak, Selangor, and Terengganu) and 2 federal territories (Kuala Lumpur and Labuan). Kuala Lumpur, coextensive with the federal territory, is the capital and largest city.

From the late 18th to the early 19th centuries, Britain gradually gained control of Peninsular Malaysia, and most of northern Borneo fell into private British hands. During the same period, the largely Malay population became diversified, as ethnic Chinese and Indians immigrated to work in Malaysia�s tin and rubber industries. Since independence in 1957, ethnic tensions, especially between Chinese and Malays, have dominated political and economic issues. Despite the tensions, however, Malaysia has experienced rapid economic growth, particularly in the manufacturing sector, and economists include the country among Asia�s �newly industrialized economies� (NIEs).

East and West Malaysia are separated by about 640 km (about 400 mi) of the South China Sea, and together comprise an area of 329,758 sq km (127,320 sq mi), with West Malaysia accounting for about 60 percent of this total. Peninsular Malaysia extends more than 800 km (500 mi) from north to south and spans 330 km (205 mi) at its widest point. In the north lies the Main Range, a mountainous spine that separates the east and west coastal plains. The Main Range rises to a maximum elevation of 2,187 m (7,175 ft) at Mount Tahan, West Malaysia�s highest point. The southern portion of the peninsula is relatively flat. Numerous small islands lie off the coast, including Langkaw (Pulau Langkawi) and Pinang off the northwest coast, and Tioman, a popular tourist destination off the southeast coast.

The states of Sarawak and Sabah (on Borneo), and the federal territory of Labuan (an island off the coast of Sabah) make up East Malaysia. On Borneo, East Malaysia has a maximum width of 275 km (171 mi) and extends about 1,130 km (about 700 mi) in length. Its jagged coastline is about 2,250 km (about 1,400 mi) long. Sarawak, occupying the southwestern section of East Malaysia, consists of swampy lowlands along the coast rising to high mountains in the interior, especially in the east. Sabah, in the northeast, has extensive lowlands in its eastern section. Along Borneo�s northern coast in Sabah is the Crocker Range, which rises to a maximum elevation of 4,101 m (13,455 ft) at Mount Kinabalu, the highest peak in Malaysia. Several small islands, most notably Labuan and Banggi, lie off the coast of Sabah.

East Malaysia contains the country�s two longest rivers: the Rajang in Sarawak and the Kinabatangan in Sabah. They are each 560 km (350 mi) long and navigable for part of their courses. Also important is the 400-km (250-mi) long Baram River in Sarawak. Peninsular Malaysia�s longest rivers include the Pahang (470 km/290 mi long), the Kelantan (about 400 km/about 250 mi long), and the Perak (about 240 km/about 150 mi long), all of which are navigable for most of their courses. Most of Malaysia�s rivers have steep descents, especially those in Sarawak. Consequently, these rivers have immense hydroelectric potential, which the country is in the process of developing. Most of Malaysia�s lakes were created by dam projects. The largest of these lakes are Temengor in the state of Perak, and Kenyir in the state of Terengganu; Lake Kenyir, which is surrounded by dense vegetation and borders on a national park, is being developed for ecotourism. The country�s largest natural lake is the Bera in West Malaysia.

Malaysia has abundant plant life in its coastal mangrove forests; in lowland tropical forests; and, at elevations over 1,200 m (3,900 ft), in mossy or montane oak forests. The country harbors an estimated 8,000 species of flowering plants, including 2,500 species of trees. The lowland forests contain some of the most important commercial timber species, including mahogany and teak. These trees often attain heights of more than 50 m (160 ft) and grow to about 3 m (about 10 ft) in circumference. Where forested areas are cleared, the ground is rapidly taken over by a coarse grass called Imperata cylindrica, an invasive weed that displaces other vegetation. The world�s largest flower, the rafflesia, grows in East Malaysia. Sabah contains the largest of the pitcher plants, the Nepenthes rajah, which can hold up to 2 liters (0.5 gallon) of water. Approximately one-quarter of the land in Malaysia is cultivated or used for plantation agriculture.

Like other tropical forests, Malaysia�s forests include an enormous variety of animal life. Large mammals include Asian elephants; tigers; sun bears; tapirs; several species of deer; and rhinoceroses, which are endangered. Malaysia�s primates include the endangered orangutans and three species of protected gibbons. Other animals include numerous birds (about 650 species of birds exist in Peninsular Malaysia alone); more than 100 species of snakes, including king cobras and pythons; and many amphibians, including crocodiles and 80 species of lizards. Malaysia is renowned for its huge insect population, including many species of butterflies and moths. Some insects, including mosquitoes, hornets, red ants, scorpions, and certain spiders, can be harmful to people.

Malaysia has several important natural resources. Forests cover nearly 50 percent of the land; Sabah and Sarawak are especially known for their tropical forests. West Malaysia has large deposits of tin and numerous rubber trees. Other minerals include copper and uranium. However, the country�s most important natural resources�and its most valuable exports�are oil and natural gas, found in offshore deposits. Petroleum reserves were estimated at 4.3 million barrels in the early 1990s, and natural gas reserves were about 2.2 billion cubic meters (77.7 billion cubic feet).

Except in the highlands, Malaysia�s climate is hot and humid year round. Average daily temperatures vary from about 20� to 30�C (about 70� to 90�F). Average annual rainfall for the peninsula is about 2,500 mm (about 100 in). The exposed northern slopes of Sarawak and Sabah receive as much as 5,080 mm (200 in) of rain per year.

Malaysia is home to some of the world�s most important tropical wildlife habitats, including rich rain forests and at least ten distinct types of wetlands. Malaysia has 2,199 plant and animal species found nowhere else on Earth. However, many species are threatened or endangered due to loss of habitat and poaching (illegal hunting).

Deforestation poses the main threat to Malaysia�s environment. The country is the world�s largest exporter of tropical hardwoods. The current rates of deforestation are unsustainable, however. The logging of upland forests, which are particularly vulnerable, has resulted in erosion, siltation, soil degradation, wildlife loss, and an increase in the amount of flood-prone areas. Many wetlands have also been disturbed or destroyed. The government has protected some areas as national parks. Kinabalu National Park, established in 1964 in Sabah, protects the area around Mount Kinabalu.

Urbanization and industrialization have caused problems with solid-waste management and water pollution, affecting many of the country�s coastal waters and rivers. Inshore and offshore fisheries resources are rapidly being exhausted. The government of Malaysia is seeking to mitigate these problems through various means, including the Environmental Quality Act (1974) and the Fisheries Act (1985), but implementation and enforcement are often hampered by lack of resources.

In 1991 Malaysia�s total population was 17,566,982. The country�s estimated 2001 population was 22,229,040, yielding an overall population density of 67 persons per sq km (175 per sq mi). The population is unevenly distributed, however, and West Malaysia is about seven times more densely populated than East Malaysia. Some 57 percent of Malaysia�s population is urban; like most developing nations, Malaysia has experienced high rural-to-urban migration rates since the 1950s. Urban unemployment is very low in Malaysia, and this contributes to the growth. The labor shortage for low-skill jobs attracts many immigrants, particularly from Indonesia, the Philippines, Pakistan, and Bangladesh. In addition to Kuala Lumpur, Malaysia�s large cities include Ipoh, Johor Baharu, Petaling Jaya, Kelang, Kuala Terengganu, and George Town (formerly Pinang). Kuala Lumpur, Petaling Jaya, and Kelang are part of the Kelang Valley conurbation, Malaysia�s largest urban region. A new center of government administrative offices, Putrajaya, is being constructed about 40 km (about 25 mi) south of Kuala Lampur; it will be part of the greater Kuala Lumpur metropolitan area when completed in the early 21st century. Nearly one-half of Kuala Lumpur�s metropolitan area population resides in the surrounding state of Selangor, where Petaling Jaya, Kelang, and Shah Alam are located. Between 1980 and 1991 Selangor grew by 60.5 percent, compared with only 27.8 percent for Kuala Lumpur and about 26 percent for the nation as a whole. Only one state, Sabah, had a higher growth rate (87 percent) during the same period. Johor Baharu, located across from Singapore at the southern tip of the Malay Peninsula, is also growing rapidly. George Town, a major seaport and tourist destination, is on the island of Pinang.

Ethnic Malays and other indigenous peoples, sometimes known as Malayan peoples, comprise 59 percent of Malaysia�s population. In Malaysia they are called bumiputera (sons of the soil). Other groups include ethnic Chinese, who constitute 26 percent of the population, and ethnic Indians, who make up about 7 percent. Small numbers of Indonesians, Thai, Europeans, and Australians also live in Malaysia. In West Malaysia nearly three-fifths of the population are ethnic Malays. Fifteen percent of the population in Sabah and 40 percent of the population in Sarawak belong to one of the numerous Dayak ethnic groups inhabiting the island of Borneo. Chinese constitute a sizable population throughout Malaysia, especially in Sarawak. The national language is Bahasa Malaysia (also known simply as Malay), a Malay language of the Austronesian language family. English, Chinese, and Tamil (a Dravidian language of southern India) are also widely spoken.

Islam is the country�s official religion, although the constitution guarantees freedom of religion. More than half the people of Malaysia are Muslims, including nearly all ethnic Malays. Most Chinese are Buddhists, although Confucianism and Daoism (Taoism) are also important. Most Indians practice Hinduism. In Sabah and Sarawak many of the indigenous peoples are Christians, although traditional beliefs are also widely practiced.

In Malaysia education is free and compulsory for children between the ages of 6 and 16, and an additional two years of free education are optional. In 1997, 101 percent of Malaysian children attended primary school. Parents may choose between Bahasa Malaysia, Chinese, or Tamil as the language of instruction for their primary-school children. Bahasa Malaysia is the primary language of instruction in all secondary schools, although continued learning in Chinese and Tamil is available and English is a compulsory second language. Enrollment in secondary education was 64 percent in 1997. Malaysia has a number of institutions of higher education, including nine universities. Universities include the National University, in Bangi; the University of Technology, in Johor Baharu; and the University of Malaya, in Kuala Lumpur.

The people of Malaysia have a variety of lifestyles. Important among ethnic Malays are respect and obedience toward parents and elders, community self-help, and, in rural areas, the maintenance of law and order through cooperation and respect for the village headman. Marriages, burial customs, and other aspects of Malay life conform to Islamic law. In general, religion plays a major role in each group�s way of life. Wedding ceremonies of ethnic Indians, for example, follow Hindu traditions, whereby the wedding takes place on a day and hour prescribed by a Hindu astrologer. Traditional Chinese family structure is patrilineal and patriarchal; as in China, sons are preferred over daughters in order to maintain the family surname through descent. Kinship ties among the extended Chinese family are very strong and carry into the business environment. Because ethnic Chinese own many Malaysian businesses, these ties hinder occupational mobility among Malays.

Rural ways of life differ significantly from urban lifestyles. In East Malaysia, about three-quarters of the population is rural. Many indigenous ethnic groups, including the Iban (Sea Dayaks), Bidayuh (Land Dayaks), and Kadazan, practice shifting cultivation (also known as slash-and-burn agriculture). In this type of agriculture, trees and grasses are burned from an area so a crop may be planted; after several seasons, the land is abandoned and a new area is burned for planting. These groups live mostly in single-family housing units, but many indigenous people in East Malaysia live in longhouses, a traditional dwelling of Borneo.

Poverty remains fairly widespread in Malaysia, and the distribution of income is uneven, especially in rural areas. Ethnic Chinese and Indians typically predominate in estate agriculture, which brings higher incomes than the activity of most bumiputras, who generally work as laborers on estate farms, raise crops on small plots, or practice subsistence agriculture (farming to meet family or village needs rather than for profit). In general, ethnic Chinese play the major role in both the rural and urban sectors of the economy, and this is an issue of contention for many bumiputras. In 1970 the government introduced the New Economic Policy (NEP) to try to redress these economic differences and eliminate the relationship between ethnicity and income. The 20-year period of the NEP produced some improvements, including a reduction of people living at or below poverty level, from 52 percent in 1970 to 17 percent in 1990. However, economic and social differences among groups, especially those between Malay and Chinese, remain a major problem for Malaysia. In 1991 the government introduced a successor to the NEP, the New Development Policy (NDP).

Malaysia reflects different cultural traditions, including those of China, India, the Middle East, Europe, and the entire Malay Archipelago. Early Malay empires absorbed Indian influences, such as Hindu epics and the Sanskrit language. The kingdom of Malacca, centered in the present-day state of Melaka, developed as an Islamic state, or sultanate, in the 1400s. Later, new cultural influences from Europe and China mixed with Hindu and Islamic traditions. A collective but distinctively Malay cultural pattern has emerged out of all these influences, with artistic expressions in literature, music, dance, and art forms.

Malaysia�s most important literary work is the Sejarah Melayu (Malay Annals). Written in the 1500s, this work presents a somewhat romanticized account of the Malacca sultanate. European colonizers on Peninsular Malaysia (the Portuguese in 1511, the Dutch in 1641, and finally the English in the 18th century) greatly affected the local literary style. In print, the vernacular, or spoken, language replaced the classical literary style of Malay, and in 1876 the first Malaysian newspaper used the vernacular.

Malaysian decorative art forms include colorful batik cloth, silverware, pewter items, and woodcarvings. Like other elements of Malaysian culture, its architecture reflects influences from India, China, and Islam. These influences are most pronounced in religious structures. The British introduced colonial architecture and, in buildings such as the old post office and railway station in Kuala Lumpur, the Moorish style.

Hindu, Islamic, and Indonesian forms influenced music in Malaysia. For example, wayang kulit (shadow-puppet theater), was introduced from Java in the 13th century, and today is most commonly found in the state of Kelantan. Malaysian musical instruments include distinctive drums (gendang), of which there are at least 14 types; gongs and other percussion instruments made from native materials such as bamboo (kertuk and pertuang) and coconut shells (raurau); and a variety of wind instruments, including flutes. Ensembles (nobat) and orchestras (gamelan) play these instruments at special occasions. Chinese musical forms, including Chinese opera, were more recently introduced into Malaysia; however, today�s young Malaysians of Chinese descent have little interest in such forms of music.

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 National Library of Malaysia and the National Archives are in Kuala Lumpur. Each state (except the smallest, Perlis) has its own museum exhibiting local items.

The economy of Malaysia once relied principally on the production of raw materials for export, most importantly petroleum, natural rubber, tin, palm oil, and timber. Recently, however, the manufacturing sector has grown in importance, helping the nation�s economy expand 7.3 percent annually in the period 1990-1999. Tourism has also become an important sector in Malaysia�s economy. In 1997 Malaysia�s annual budget included revenues of about $23.1 billion and expenditures of about $19.72 billion. The value of gross domestic product (GDP) was $79 billion in 1999. Services accounted for 43 percent of the GDP; industry, including mining and construction, 46 percent; and agriculture, forestry, and fishing, 11 percent.

In 1999 Malaysia had a labor force of 9.3 million workers. Some 19 percent were employed in agriculture, forestry, fishing; 32 percent in industry; and 49 percent in services. Unemployment was comparatively low, with only 2.5 percent of the workforce unable to find work in 1997.

Some 6 percent of Malaysia�s land is under cultivation for field crops and 18 percent is used for plantation agriculture. Malaysia ranks as the world�s leading producer and exporter of palm oil, which accounted for 5 percent of export earnings in the early 1990s. The country was also once the leading producer of natural rubber, though in the early 1990s Thailand and Indonesia surpassed Malaysia after Malaysia began shifting to more profitable crops such as palm oil. Other important cash crops are cacao, sugarcane, pepper, coconuts, and pineapples. The principal subsistence crop is rice, though cassava and bananas are also important. The country is a leading world supplier of tropical hardwoods. Most of the exported raw timber comes from Sabah and Sarawak, while West Malaysia provides finished goods such as plywood. In 1997 Malaysia�s annual fish catch was 1.3 million metric tons, nearly all of it from ocean waters.

Production of petroleum and natural gas has increased greatly since offshore drilling began in the 1970s, and the refining of crude oil is a major industry. In 1999 mineral fuels provided 7 percent of Malaysia�s export revenues. Malaysia�s tin reserves rank among the largest in the world, although production has declined sharply, from about 70,000 metric tons of concentrates in the early 1970s to about 7,340 in 1999. Much of the decline is due to a sharp fall in the world commodity price for the metal. Mining activity also yields bauxite, copper, iron ore, silver, and gold.

During the 1980s and early 1990s manufacturing production increased by nearly 10 percent annually; in 1999 manufactured items accounted for 80 percent of exports by value. Malaysia is becoming a leading exporter of semiconductors, in part because of rising production costs in other Asian countries. Principal industrial activities are the processing of rubber, palm oil, timber, tin, and petroleum; and the production of electrical and electronic equipment, processed food, textiles, chemicals, building materials, and handicrafts. In addition, Malaysia produces its own automobile, the Proton.

Among the most important of the service industries is tourism, which has grown rapidly since the government sponsored the Visit Malaysia Year campaign in 1990. Many tourists travel to Malaysia for short visits from nearby Singapore or other Southeast Asian countries, although a large number arrive from more distant places, including Japan and Taiwan.

Malaysia is self-sufficient in energy. In 1999 annual production was 59 billion kilowatt-hours. Some 95 percent of the country�s production came from thermal plants burning fossil fuels (petroleum and natural gas), and 5 percent was from hydroelectric sources.

The framework of West Malaysia�s system of roads and railroads was laid down during the British colonial period. A main highway in western Peninsular Malaysia extends over 800 km (500 mi) from Singapore to the Thai border in the north. The road system in Sabah and Sarawak is much less developed; a main road runs along Borneo�s northern coast but there are few good interior roads. The state-owned railroad system consists of 1,648 km (1,024 mi) of track, most of which is in West Malaysia and with a short stretch in Sabah. Malaysia Airlines, founded in 1971, offers both domestic and international flights. Two additional national carriers also offer domestic and regional flights. Malaysia has a number of international airports, including the Kuala Lumpur International Airport, located south of the city at Sepang. Major seaports in West Malaysia are Port Kelang, George Town, and Melaka. Kuching and Labuan are the major seaports serving Sarawak and Sabah, respectively.

Malaysia has a vigorous press, with 42 daily newspapers publishing in four languages. The state-run Radio Malaysia operates six radio networks, and Television Malaysia operates two television networks; two private television networks also exist.

Export trade totaled $84 billion in 1999. Major exports include semiconductors and electronic equipment, petroleum and petroleum products, palm oil, wood and wood products, rubber, and textiles. The chief buyers of exports are the United States, Singapore, Japan, Hong Kong, the United Kingdom, Thailand, and Germany. Trade with China has expanded significantly. Imports were valued at $65 billion in 1999. The major imports were machinery and transportation equipment, manufactured goods, chemicals, mineral fuels, and food. The leading suppliers of imported goods are Japan, the United States, Singapore, Taiwan, Germany, the United Kingdom, South Korea. Malaysia is a founding member of the Association of Southeast Asian Nations (ASEAN) and is a full participant in the ASEAN Free Trade Association (AFTA), established in 1992 with the goal of nearly free trade among member nations in 15 years. The country is also part of the Southern Growth Triangle (SGT), which includes Singapore, Johor Baharu, and Indonesia�s Riau Archipelago; and part of the Northern Growth Triangle (NGT), which includes Pinang, southern Thailand, and northern Sumatra in Indonesia. The SGT and NGT are cooperative associations focused on increasing the economic development of their respective regions.

The Malaysian unit of currency is the ringgit, consisting of 100 sen (3.80 ringgits equal U.S.$1; 1999 average). Malaysia�s central bank and bank of issue is the Bank Negara Malaysia, in Kuala Lumpur. There is a stock exchange in Kuala Lumpur.

Malaysia is a federal constitutional monarchy with a two-house legislature. The government is based on the 1957 constitution of the Federation of Malaya, which was an independent nation from 1957 to 1963 that occupied present-day West Malaysia. The Federation of Malaya joined with Singapore, Sarawak, and Sabah to form the Federation of Malaysia in 1963, although Singapore became an independent republic in 1965. All citizens of Malaysia who are at least 21 years old may vote.

The head of state is the Yang di-Pertuan Agong (Supreme Head of the Federation), who is selected by and from nine hereditary sultans, or rulers, and serves a five-year term. Executive power is exercised by the prime minister, who is the leader of the majority party or coalition in the house of representatives and is appointed by the head of state.

The parliament consists of a House of Representatives (Dewan Rakyat) with 193 members and a Senate (Dewan Negara) with up to 70 members. Representatives are popularly elected for five-year terms. Senators serve six-year terms. Two senators are elected by each of the 13 state legislatures, two are chosen from each of the two federal territories, and the head of state appoints the rest. Legislative power is divided between the federal and local state legislatures.

The Federal Court (formerly the Supreme Court) is the highest court. Below this are two High Courts, one serving West Malaysia and the other serving East Malaysia. A Court of Appeal hears appeals from the Federal Court, and the Federal Court hears appeals from the High Courts. Each High Court has a chief judge and several other judges; the Federal Court consists of the chief justice, the two chief judges from the High Courts, and seven other judges. The chief justice, chief judges, and other judges from the Federal Court and High Courts are appointed by the Yang di-Pertuan Agong on the advice of the prime minister and the Conference of Rulers, which consists of the nine hereditary rulers and the heads of the other states. Lower courts include the Sessions Courts and the Magistrates� Courts. Islamic laws apply to Muslims and Muslims may be prosecuted in Islamic courts at the state level.

West Malaysia is divided into the Federal Territory of Kuala Lumpur and 11 states: Johor, Kedah, Kelantan, Melaka, Negeri Sembilan, Pahang, Perak, Perlis, Pinang, Selangor, and Terengganu. East Malaysia consists of the states of Sabah and Sarawak, and the Federal Territory of Labuan. Each of the 13 states has a titular ruler whose title varies in different states. Effective executive power in the states rests with the chief minister, who heads an executive council, or cabinet. Each state has its own written constitution and a unicameral legislative assembly empowered to legislate on matters not reserved for the federal parliament.

The leading political party in Malaysia is the United Malays National Organization (UMNO), led by Prime Minister Mahathir bin Mohamad. In the general election of 1999, a UMNO-led coalition, called the National Front (Barisan Nasional), won 148 of the 193 seats in the House of Representatives. Other parties that won seats in the House of Representatives were the Democratic Action Party, Pan-Malayan Islamic Party, and National Justice Party�which form a coalition called the Alternative Front (Barisan Alternatif)�as well as the Sabah United Party.

The Ministry of Health operates a comprehensive health-care system. Government hospitals provide care for all who need it. In addition, most large towns and cities have private hospitals that provide sophisticated medical treatment for those who can pay. There is no national comprehensive system of social welfare, although there are programs that protect workers against, for example, sickness, accidents, and arbitrary dismissals. Nongovernmental organizations carry much of Malaysia�s social welfare burden.

In 1999 the Malaysian armed forces included 96,000 active-duty personnel, of which 80,000 were in the army, 8,000 were in the air force, and 8,000 were in the navy. Military service is voluntary. Unlike the military in neighboring Thailand and Indonesia, Malaysia�s military plays an apolitical role and is under the complete control of the civilian government.

Malaysia is a member of most major international organizations, including the United Nations (UN) and many of its member agencies. Other organizations to which Malaysia belongs include the Commonwealth of Nations, the World Trade Organization (WTO), and the Organization of the Islamic Conference.

Humans lived in the area of present-day Malaysia as long as 40,000 years ago. The early history of the area is obscure because there are few local documents and almost no 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 people�s customs and the rituals of local rulers. Peninsular Malaysia was not unified politically but was split into small kingdoms and subdivided into chiefdoms defined by river valleys. Political rule of Borneo was even more fragmented. Some of the mainland kingdoms may have been subject to a degree of control by larger empires centered in Cambodia or Java, such as Majapahit.

About AD 1400 Parameswara, a Sumatran prince, founded the kingdom of Malacca on the site of present-day Melaka. He was converted to Islam, which traders from India had already brought to the area, and Malacca became a center for the further spread of the Muslim faith. Malacca prospered and expanded its influence into most of the Malay Archipelago, but in 1511 it was conquered by the Portuguese under Afonso de Albuquerque. The Portuguese in Malacca survived constant fighting with neighboring Johor, Aceh in Sumatra, and other states. In 1641, however, Malacca fell to the Dutch, who replaced the Portuguese as the leading European trading power in the region. Like their predecessors, the Dutch were frequently at war with neighboring kingdoms and succeeded in extending their influence to parts of Johor. In this period the northern Malay kingdoms�Perlis, Kedah, Kelantan, and Terengganu�were frequently under the influence of Siam (present-day Thailand).

The British became active in the area in the 18th century, partly because they sought trade, but also to check French power in the Indian Ocean. The sultan of Kedah, looking for help against the Siamese, leased the island of Pinang to the English East India Company in 1786, and Sir Thomas Stamford Raffles, a company administrator, founded Singapore in 1819. Under the Anglo-Dutch Treaty of 1824, Britain secured Malacca from the Dutch and in return relinquished its claims to Sumatra and nearby smaller islands. Singapore, Pinang, and Malacca (which collectively became the Straits Settlements in 1826) were then administered by Britain.

In the mid-19th century tin-mining activity greatly expanded in the Malay Peninsula, and Malay rulers and the immigrant Chinese they employed became involved in territorial disputes. Fearful that these disputes might disrupt trade, the British took control of the peninsular states, working indirectly through the Malay rulers. Using diplomacy and taking advantage of dynastic quarrels, the British persuaded the rulers to accept British �residents� or �advisers,� who dictated policy. Before World War II (1939-1945) the native states were classified as either federated or unfederated, with British control 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 from 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 present Malaysian territories in Borneo were largely under the domination of the powerful Muslim state of Brunei until the 19th century. Before then, Europeans traded on the island but made no permanent settlements. In 1841, however, the sultan of Brunei rewarded Sir James Brooke, an English adventurer who helped to suppress rebels, with a gift of land and the title raja of Sarawak. Brooke and his successors expanded the territory. To the east, the sultans of Brunei and Sulu also granted land to Europeans. In 1882 the British North Borneo (Chartered) Company purchased the European-held territory. British North Borneo and Sarawak became British protectorates in 1888.

British colonial impacts on Malaysia, especially West Malaysia, while not always positive, were profound. For example, Britain was directly or indirectly responsible for the establishment of the plantation system and the commercialization of agriculture; the framework for the present-day transportation system; multiracialism (through the importation of Chinese and Indian labor); the introduction of English and an educational system; and modern political institutions.

Malaya, Sarawak, and North Borneo were seized by the Japanese in 1941 and 1942 and remained under Japanese occupation until World War II ended in 1945. Ethnic rivalries complicated the movement for independence that emerged after the war. The British had encouraged Chinese and Indian immigration to supply labor needed by the tin, rubber, and other industries. In the 1940s the population of the Malay states was approximately 50 percent Malay, 37 percent Chinese, and 12 percent Indian. Deep divisions separated these groups, coinciding substantially with religious and linguistic differences. With independence approaching, Malays expressed concern that immigrants would acquire political power. In 1946 they protested successfully against a scheme, known as the Malayan Union, that would have given most immigrants citizenship and voting rights while reducing the power of the Malay rulers. In 1948 the peninsular states formed the Federation of Malaya, which retained the power of the sultans.

The Alliance, the dominant political party that emerged in the 1950s, was multiethnic in its leadership but also ensured separate representation of ethnic groups through three component parties: the United Malays National Organization, the Malayan Chinese Association, and the Malayan Indian Congress. The Alliance won an overwhelming victory in the first nationwide elections in 1955. The British and the Alliance worked out the constitution, providing for a federal state; a bicameral parliament consisting of one elected and one appointed body; citizenship for most non-Malays; and special provisions for the Malays, who were regarded as less economically developed and were given preference for civil service jobs, scholarships, and licenses. In 1957 the Federation of Malaya (which occupied what is now West Malaysia) gained independence from Britain. It joined the United Nations that same year.

Meanwhile, the government had been fighting a Communist-led rebellion, known as the Malayan Emergency, since 1948. Most Communists were poor ethnic Chinese who were opposed to British colonial rule. When the Federation of Malaya became independent in 1957, they continued to fight for Communist rule. By the time the conflict finally ended in 1960, about 11,000 people had died. Not until 1989, however, did the Communists formally agree to lay down their arms.

In 1961 Tunku Abdul Rahman, Malaya�s first prime minister, proposed a Malaysian federation of Malaya, Singapore, Sarawak, North Borneo (later called Sabah), and Brunei. All but Brunei joined the federation in 1963. Economic and political disputes based on racial differences led to Singapore�s exit in 1965.

Since independence, ethnic disputes have dominated Malaysian politics. In the 1960s these disputes centered on the preeminence of Malays in politics and the supremacy of Chinese and Indians in the economic arena. In the 1969 general elections, the Alliance faced opposition from both Malay and non-Malay parties. Immediately afterward serious rioting broke out in Kuala Lumpur and at least 200 people were killed. The government invoked emergency powers and imposed restrictions on raising ethnically sensitive issues; parliament did not meet again until 1971. The new prime minister, Tun Abdul Razak, announced a new program called the New Economic Policy (NEP) to alleviate poverty in general, but also to improve specifically the economic condition of the Malays. Among the goals of the NEP was to increase the employment of Malays in occupations dominated by non-Malays. He also broadened the Alliance (already extended to Sarawak and Sabah) into an organization called the National Front, which included some opposition parties. The National Front won the 1974 elections decisively and also, under Prime Minister Datuk Hussein Onn, the 1978 elections. Ethnicity, however, still dominated the political scene, and two major opposition parties opposed the National Front: the Pan-Malayan Islamic Party and the Democratic Action Party. When Hussein Onn retired in 1981, he was succeeded by his deputy, Mahathir bin Mohamad.

A constitutional conflict in 1983 between the Mahathir government and the hereditary sultans led to a compromise restricting the power of Malaysia�s head of state 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. Constitutional amendments passed in 1993 and 1994 further restricted the powers of the head of state. The amendments prohibited the nine hereditary rulers from pardoning themselves or their families from criminal charges and removed the head of state�s power to delay legislation. The National Front, having won three consecutive victories in 1982, 1986, and 1990 with Mahathir as prime minister, gained an even greater majority in the elections of 1995. Mahathir again retained his position as prime minister. Since the early 1990s the centerpiece of the Mahathir era has been �Vision 2020,� his program to propel Malaysia into the ranks of developed industrial nations by 2020.

Southeast Asian financial markets suffered a serious blow in 1997 when investors lost confidence in a number of Asian currencies and securities. The impact to Malaysia�s economy was not as severe as it was in other Asian countries, but economic concerns caused the Mahathir government to scale back or postpone several important infrastructure projects.