Geography

Split between the Asian mainland and the island of Borneo, Malaysia is a bit discombobulated.  Peninsular Malaysia is the heart of the country, with most of the people, economy and government.  But East Malaysia, comprised of two states in northeastern Borneo, contributes vast natural resources.

Malaysia enjoys a tropical monsoon climate, and is endowed with an extraordinary environment containing some of the world’s most ancient tropical forests and incredible marine diversity.  Extensive logging of the forests is the main environmental threat.

History

Until the colonial era began Malaysia, like Indonesia and Singapore, was part of a vast and important web of regional trade, dominated by ethnic Malays.  From the 16th century, first the Portuguese and then the Dutch tried to bully their way in.  While they succeeding in capturing cities and building fortresses, their protectionist trade policies encouraged trade to flourish elsewhere.

The British arrived in the late 18th century with a different model:  free trade.  Their first stop, Penang, was transformed from a small island of no great import to a thriving port in just a few years.  Singapore followed on its heels.  Within a few decades, the British were the dominant colonial power in the area. 

Developing the colony of British Malaya required workers.  The British decided to let ethnic Malays go on about their business of nominal rule (for the elite) and small farming (for the rest), and imported laborers from China and India to do their dirty work.  This is why modern Malaysia is a multi-ethnic state where the Malay majority tend to be in government (the elite) or poor (the rest), while others dominate business.

After World War II, the British decided the best way to exit gracefully was to amalgamate its regional possessions.  Malaysia became an independent country in 1963, and actually kicked out Singapore in 1965 (it was viewed as too Chinese). 

Supreme political power theoretically rests with the monarch, who is supposed to act on the advice of an elected parliament.  In practice, the country is ruled by its prime minister, Dr. Mahathir, who brooks no opposition.

People

There are 22 million Malaysians.  The main ethnic groups are Malays (48%), Chinese (32%), Indian (8%) and Indigenous (12%).  The latter group includes the Dayak of Borneo.  Tension between the more-numerous Malay and the more-prosperous Chinese remains the most divisive social issue.

The UN ranks Malaysia in the 66th  percentile in terms of quality of life, based on life expectancy, education and income; this is above most Asian countries. 

Economy

Malaysia is a middle-income country, with a GNP per capita of $3,700.  The country entered a period of dynamic economic growth in 1987, sparked by government policies supportive of privatization and foreign investment.

The economy is quite diversified.  Malaysia is the world’s largest producer of palm oil and disk drives, and the largest exporter of timber.  High-tech represents 49% of manufactured exports.

Tourism is moderately important.  There were 5.6 million arrivals in 1988.

Sources:  World Bank (1998 data), Dorling Kindersley World Reference Atlas, UNDP Human Development Report, Lonely Plane