Malaysia - məlāˈzhə, independent federation (2001 est. pop. 22,229,000), 128,430 sq mi (332,633 sq km), Southeast Asia. The official capital and by far the largest city is Kuala Lumpur. Work on the new administrative capital, Putrajaya, located between Kuala Lumpur and its international airport, was begun in the mid-1990s.

Land and People

Malaysia consists of two parts: West Malaysia, also called Peninsular Malaysia or Malaya (1990 est. pop. 14,400,000), 50,700 sq mi (131,313 sq km), on the Malay Peninsula and coextensive with the former Federation of Malaya, comprising the states of Perlis, Kedah, Pinang, Perak, Kelantan, Terengganu, Pahang, Selangor, Negeri Sembilan, Melaka (Malacca), and Johor, and two federal territories, Wilayah Persekutuan, which is coextensive with the city of Kuala Lumpur, and Putrajaya; and East Malaysia (1990 est. pop. 3,410,000), 77,730 sq mi (201,320 sq km), comprising the states of Sabah and Sarawak (the former British colonies of North Borneo and Northwest Borneo) on the island of Borneo and one federal territory, comprising the island of Labuan. The two parts are separated by c.400 mi (640 km) of the South China Sea.

West Malaysia is bordered on the north by Thailand, on the east by the South China Sea, on the south by Singapore (separated by the narrow Johore Strait), and on the west by the Strait of Malacca and the Andaman Sea. East Malaysia is bordered on the north by the South China Sea and the Sulu Sea, on the east by the Celebes Sea, and on the south and west by Kalimantan (Indonesian Borneo). Along the coast within Sarawak is the independent nation of Brunei. Both East and West Malaysia have mountainous interiors and coastal plains. The highest point is Mt. Kinabalu (13,455 ft/4,101 m) in Sabah. The longest of the country's many rivers are the Rajang (c.350 mi/560 km) in Sarawak, the Kinabatangan (c.350 mi/560 km) in Sabah, and the Pahang (c.200 mi/320 km) in West Malaysia. Lying close to the equator, Malaysia has a tropical rainy climate. Over two thirds of the land area is forested.

Although it makes up only 31% of the country's area, West Malaysia has more than 80% of its people. Of the total population, most of which is concentrated on the west coast, almost 60% are of Malay or indigenous descent, over 25% are Chinese, and some 10% are Indian or Pakistani. In West Malaysia, Malays comprise about one half of the population, Chinese one third, and Indians and Pakistanis one tenth. In East Malaysia, the two largest groups are the Chinese and the Ibans (Sea Dyaks), an indigenous people, who together make up about three fifths of the total. Conflict between the ethnic groups, particularly between Malays and Chinese, has played a large role in Malaysian history.

Nearly all of the Malays are Muslims, and Islam is the national religion. The majority of Chinese are Buddhists, and the majority of Indians are Hindu. The official language is Bahasa Malaysia (Malay), although English is used in the legal system. Chinese (largely Mandarin), Tamil, and regional ethnic languages and dialects are also widely spoken. Malaysia's institutions of higher education include the Univ. of Malaya in Kuala Lumpur, the Univ. of Malaysia and the International Islamic Univ., both in Selangor, the Technological Univ. of Malaysia in Johor Bahru, and the Multimedia University in Cyberjaya.

Economy

Malaysia has one of the highest standards of living in SE Asia, largely because of its expanding industrial sector, which propelled the country to an 8%–9% yearly growth rate from 1987 to 1997. Growth contracted during the 1997–98 Asian financial crisis, and the government was forced to cut spending and defer several large infrastructure projects. Unemployment and interest rates rose, and thousands of foreign workers, many of them from Indonesia, were forced to leave the country. The economy began to improve in 1999.

Malaysia is a large producer of rubber and tin; other important industries include palm-oil, crude petroleum and petroleum products, electronics, logging, and textiles. Since the late 1980s, the government has moved to privatize large industries that had been under state control, and foreign investment in manufacturing has increased significantly. Pinang city is the chief port. Subsistence agriculture remains the basis of livelihood for about 20% of Malaysians and agriculture provides about 15% of GDP. Rice is the staple food, while fish supply most of the protein. Industry is largely concentrated in West Malaysia. The major cities on the Malay Peninsula are connected by railroads with Singapore, and an extensive road network covers the west coast. The main trading partners are Japan, the United States, and Singapore.

Government

Malaysia is a federal constitutional monarchy with parliamentary democracy. The sovereign (the Yang di-Pertuan Agong) is elected every five years by and from the nine hereditary rulers of Perlis, Kedah, Perak, Kelantan, Terengganu, Pahang, Selangor, Negeri Sembilan, and Johor. The prime minister must be a member and have the confidence of the house of representatives (Dewan Ra'ayat). The cabinet is chosen by the prime minister with the consent of the sovereign. The parliament has two chambers. The house consists of 192 members, all elected by popular vote in single-member districts. The house sits for a maximum of five years but may be dissolved by the sovereign. The senate (Dewan Negara) consists of 69 members chosen for six-year terms; each state legislature elects two and the sovereign appoints the remaining 43. There is a high court for each half of Malaysia and a supreme court.

History

Foreign Influence and Settlement

(For early history of West Malaysia, see Malay Peninsula; for history of East Malaysia, see Sabah and Sarawak.) When the Portuguese captured Malacca (1511), its sultan fled first to Pahang and then to Johor and the Riau Archipelago. One of his sons became the first sultan of Perak. From both Johor and Aceh in Sumatra unsuccessful attacks were made on Malacca. Aceh and Johor also fought each other. The main issue in these struggles was control of trade through the Strait of Malacca. Kedah, Kelantan, and Terengganu, north of Malacca, became nominal subjects of Siam.

In the early 17th cent. the Dutch established trading bases in Southeast Asia. By 1619 they had established themselves in Batavia (Jakarta), and in 1641, allied with Johor, they captured Malacca after a six-month siege. Another power entered the complicated Malayan picture in the late 17th cent. when the Bugis from Sulawesi, a Malay people economically pressured by the Dutch, began settling in the area of Selangor on the west coast of the peninsula, where they traded in tin. The Bugis captured Johor and Riau in 1721 and, with a few interruptions, maintained control there for about a century, although the Johor sultanate was permitted to remain. The Bugis were also active in Perak and Kedah. Earlier, in the 15th and 16th cent., another Malay people, the Minangkabaus from Sumatra, had peacefully settled inland from Malacca. Their settlements eventually became the state of Negeri Sembilan.

The British role on the peninsula began in 1786, when Francis Light of the British East India Company, searching for a site for trade and a naval base, obtained the cession of the island of Pinang from the sultan of Kedah. In 1791 the British agreed to make annual payments to the sultan, and in 1800 the latter ceded Province Wellesley on the mainland. In 1819 the British founded Singapore, and in 1824 they formally (actual control had been exercised since 1795) acquired Malacca from the Dutch. A joint administration was formed for Pinang, Malacca, and Singapore, which became known as the Straits Settlements.

During this period Siam was asserting its influence southward on the peninsula. In 1816, Siam forced Kedah to invade Perak and made Perak acknowledge Siamese suzerainty. In 1821, Siam invaded Kedah and exiled the sultan. The Anglo-Siamese treaty of 1821 recognized Siamese control of Kedah but left the status of Perak, Kelantan, and Terengganu ambiguous. In 1841 the sultan of Kedah was restored, but Perlis was carved out of the territory of Kedah and put under Siamese protection.

British Involvement

Later in the 19th cent. a number of events led Great Britain to play a more direct part in the affairs of the peninsula. There was conflict between Chinese settlers, who worked in the tin mines, and Malays; there were civil wars among the Malays; and there was an increase in piracy in the western part of the peninsula. Merchants asked the British to restore order. The British were also concerned that Dutch, French, and German interest in the area was increasing. As a result, treaties were made with Perak, Selangor, Pahang, and the components of what became (1895) Negeri Sembilan. In each state a British "resident" was installed to advise the sultan (who received a stipend) and to supervise administration. The Pangkor Treaty of 1874 with Perak served as a model for subsequent treaties.

In 1896 the four states were grouped together as the Federated Malay States with a British resident general. Johor, which had signed a treaty of alliance with Britain in 1885, accepted a British adviser in 1914. British control of the four remaining Malayan states was acquired in 1909, when, by treaty, Siam relinquished its claims to sovereignty over Kedah, Kelantan, Perlis, and Terengganu. These four, along with Johor, became known as the Unfederated Malay States.

In the latter half of the 19th cent. Malaya's economy assumed many of the major aspects of its present character. The output of tin, which had been mined for centuries, increased greatly with the utilization of modern methods. Rubber trees were introduced (Indian laborers were imported to work the rubber plantations), and Malaya became a leading rubber producer. Malaya's economic character, as well as its