A nation of Southeast Asia, Malaysia consists of two components: peninsular Malaysia, which is part of mainland Southeast Asia,

and the states of Sabah and Sarawak on the island of Borneo. Although there are considerable areas of lowland and coastal plain,
much of the country consists of mountainous terrain clothed in dense rainforest. With the exception of Mount Kinabalu in Sabah,
elevations are modest—3,000 to 6,000 feet (1,000 to 2,000 meters). Since Malaysia lies entirely between one and seven degrees
north of the equator, it experiences a humid equatorial-tropical climate. The capital of Malaysia is Kuala Lumpur.

Peninsular Malaysia covers an area of 50,881 square miles (131,778 square kilometers). Kuala Lumpur occupies a small enclave in
the west-central state of Selangor, designated in 1974 as a federal territory. About four fifths of Malaysia's population resides in
peninsular Malaysia. The states of Sabah, with an area of 28,424 square miles (73,619 square kilometers), and Sarawak, with an area
of 48,050 square miles (124,450 square kilometers), are separated from the peninsula by about 400 miles (640 kilometers) of the
South China Sea.

Malaysia is a very significant nation in Southeast Asia, even though it is the smallest in the region except for Singapore and Brunei.
Malaysia is one of the world's leading producers of tin, natural rubber, oil palm, and tropical lumber.

Land and Climate

Mountain ranges extend southward from Thailand into peninsular Malaysia. The weathering of granites and other associated rocks
has created extensive areas of deep and relatively well-drained soils. Tin-bearing minerals are concentrated in the gravel beds of
several of the major river systems. Over the years these rivers have transported much sediment, building extensive areas of coastal
alluvial plain—especially along the Strait of Malacca. These areas are either exploited for their swamp forest resources or are
drained to become agricultural land, especially for growing rice.
Much of the center of Borneo consists of mountain systems. Sarawak, in the northwest, represents a slightly uplifted basin with its
southern portion folded into a series of parallel ridges from southwest to northeast. Its northern portion is a still sedimenting coastal
plain under which have been found considerable petroleum resources. The mountain ridges of Sarawak pass northeastward into
Sabah, where they form a more compact coastal mountain chain. This culminates in Mount Kinabalu, which at 13,455 feet (4,101
meters) is the highest point between northeastern India and the island of New Guinea.

The Malaysian rainforests are among the world's most biodiverse. However, much of the original forest has been destroyed by
weather and by clearing for crop cultivation and livestock grazing. Malaysia is home to a wide variety of animal species, including
elephants, tigers, crocodiles, and green sea turtles. Poaching (illegal hunting) as well as habitat loss has severely endangered some
of the country's most unusual species, notably the orangutan, the Sumatran rhinoceros, and the proboscis monkey.

Malaysia's equatorial climate is characterized by temperatures and humidity that remain high throughout the year. In Kuala Lumpur
the daily minimum and maximum temperatures are about 73° and 90° F (23° and 32° C). Annual rainfall averages about 100 inches
(250 centimeters). From November to March a northeasterly airflow predominates, and portions of the country, especially those
areas farther from the equator, have a distinct dry season. From May to October a southwesterly flow predominates, and rainfall is
widespread.

People and Culture

Photograph:Christ Church in Melaka city, Malaysia

 * Christ Church in Melaka city, Malaysia

The population of Malaysia, once predominantly rural, is becoming more urban. The major cities—notably Kuala Lumpur, George
Town, Ipoh, and Johor Baharu—are expanding rapidly as the Malays and the other native ethnic groups that were previously
largely rural are migrating in increasing numbers to urban centers.

Malaysia has great ethnic diversity. In peninsular Malaysia there remain members of groups referred to as the Orang Asli, or
aboriginal peoples. Included are several groups of Negritos and Senoi and such others as the Jakun and the Temelai, who may in
fact be more closely related to the later Malay arrivals. These peoples are believed to be remnants of groups that have lived in the
peninsula for thousands of years but who were driven into remote parts of the mountains and forests by subsequent migrant groups.
By the late 1990s, the Orang Asli constituted less than 1 percent of the population.

The later groups began arriving in Southeast Asia from the north in about 2000–1500 BC. They include the Malays in peninsular
Malaysia; the Iban, Kayan, Kelabit, Kenyah, Bidayuh, Bisayah, Melanau, and Kelabit in Sarawak; and the Bajau, Kadazan, and
Murut in Sabah. These groups, along with the Orang Asli, are generally referred to collectively as the Bumiputra groups, or the “sons
of the soil.”

Under colonial rule Chinese—especially from the southern provinces—were encouraged to come to peninsular Malaysia and
Sarawak. Indian laborers from South India were also brought to work on the rubber plantations. The Chinese and Indians together
make up a large share of the population of peninsular Malaysia, though their proportions in Sarawak and Sabah are much lower.
The Malays of the peninsula were influenced by the Indianized kingdoms of Southeast Asia, though few cultural traces of this Hindu-
Buddhist phase remain. During the 15th century Islam entered the region from India by way of northern Sumatra, and the Malay
peoples quickly embraced this religion. The social and cultural life of the Malays revolves around their religious obligations and
activities. Every village or kampong has its mosque. Malay children are often sent to religious as well as state schools. Many Malays
make the hajj, or pilgrimage, to Mecca. The major festival of the year is the celebration marking the end of Ramadan, the Muslim
month of fasting (see Ramadan).

Chinese and Indian immigrant groups who arrived in the 19th and early 20th centuries brought with them their own languages and
religions. Cantonese and Hokkien are the major Chinese dialects used, though several southern dialects are also spoken. Among
the Indian community, Tamil is the most widespread language. Malay—formally called Bahasa Malaysia—is the official language
and is also the language of instruction in the schools. However, English is used in business and as a lingua franca.

Economy

The production and export of raw materials is a major part of the Malaysian economy. However, the country made great strides in
the late 20th century toward diversifying its economy and encouraging the growth of modern industries and services. Most of the
labor force works in manufacturing and trade, and these sectors are the largest contributors to the gross domestic product.
Finance has also become an important sector. Agriculture employs roughly one sixth of the working population.
Photograph:Latex being tapped from trees on a rubber plantation near Kuala Lumpur, Malaysia.

* Latex being tapped from trees on a rubber plantation near Kuala Lumpur, Malaysia.

Natural rubber has long been one of the most significant commercial crops. It is produced mainly in peninsular Malaysia, both from
large-scale plantations and from smallholdings. Many of the smallholdings were created beginning in the 1960s in an extensive
program of pioneer settlement—the establishing of impoverished families as farmers in government-planned settlement (FELDA)
schemes. Palm oil, also from both plantations and smallholders, is the most important commercial crop.

Rice has been cultivated in the region for centuries and remains a staple food item. Most rice cultivators are Malay peasant farmers
on smallholdings. Yields and output have increased as a result of irrigation projects such as the Muda Scheme in Kedah and Perlis—
and the use of high-yielding rice strains. Annual production of rice contributes greatly to national self-sufficiency. Bananas, cacao,
pineapples, and tobacco are also grown, and tropical timber is harvested for export. Peninsular Malaysia, Sarawak, and Sabah
share more or less equally in the latter enterprise.

Malaysia is one of the world's leading tin producers. Like most primary products, however, tin faces an uncertain future. Quotas are
in force to restrict production. Today, iron ore, bauxite, and copper are mined in greater quantities.

Petroleum is a relatively recent industry, with reserves estimated at more than 3 billion barrels. Production is almost entirely from
offshore rigs that lie to the east of peninsular Malaysia and to the north of Sarawak and Sabah. The petroleum fields also contain
vast reserves of natural gas.
Photograph:Employees work at an electronics factory on Pinang Island, Malaysia.

* Employees work at an electronics factory on Pinang Island, Malaysia.

In its early days, industrialization in Malaysia was linked to the production and export of industrial materials. Rubber processing, tin
smelting, and palm-oil extraction all made their appearance before 1960. In the 1960s a policy of import substitution was initiated,
with favorable terms accorded companies that began local industries to serve the Malaysian market. Such major industries as iron
and steel, sugar refining, cement production, and fertilizers were begun. In the 1970s there was a policy shift toward encouraging
the establishment of export-oriented industries. This led to factories in major urban centers, especially of peninsular Malaysia, that
produced components for the international electronics industry. It also spurred the rapid growth of textiles and other manufactured
items for sale in Europe and North America. A notable feature of economic policy planning in Malaysia is the attempt to raise the
economic status of the country's Malay population, long situated below that of the country's immigrant peoples.

The motor vehicle industry, though dependent on imported parts, forms a substantial component of the industrial sector. In 1985 the
government established Proton, a state-owned car manufacturing company. The company was so successful that a second
national car company was established in 1992. The cars are marketed primarily to Asia, though there are considerable exports to
the United Kingdom.
Malaysia's finance and trade sectors have grown considerably since the late 20th century, thanks to government policies
promoting foreign investment and market competition. Banking is regulated by the state-run Bank Negara Malaysia. However, the
fiscal crisis that struck Asia in 1997 effected an economic downturn; this, coupled with extravagant government spending and
corporate borrowing, produced a large domestic debt.

The trade sector received a boost from the establishment of several free trade zones in the late 20th century. In 1967 Malaysia
cofounded the Association of Southeast Asian Nations (ASEAN) with Indonesia, Philippines, Singapore, and Thailand. An economic
cooperative, ASEAN promotes regional economic growth, cultural development, and political stability. Since its founding, Brunei,
Vietnam, Laos, Myanmar, and Cambodia have also joined ASEAN.

Peninsular Malaysia has an excellent rail system, which links all of the major towns. The road network is also good and includes two
major highways. There are international airports at Kuala Lumpur and Pinang Island in peninsular Malaysia, and at Kota Kinabalu
and Kuching in Sabah and Sarawak, respectively. Ferry service and domestic flights connect the two East Malaysian states with the
peninsula.

Government

Malaysia is a federal constitutional monarchy. At the federal level there is a bicameral, or two-house, legislature, or parliament. The
government is headed by a prime minister, who is chief of the majority party in the Dewan Rakyat, or lower house. The states of
Melaka, Pinang, Sarawak, and Sabah have appointed governors who function as constitutional rulers for the state. Each of the
other states has a ruler, or sultan, who functions as a constitutional monarch but is also responsible for questions relating to the
Muslim religion and the Malay language. The constitutional monarch for the whole federation is the Yang Dipertuan Agung, who
serves as chief of state. He is elected by the traditional Malay rulers from among themselves for a term of five years.

History

In the middle of the 1st millennium AD, city-states emerged in Southeast Asia that reflected Hindu and Buddhist influences from
India. The lands that now make up Malaysia were at different times affected by these states, but no major Indianized state seems
to have existed in Malaysia. In the 15th century Melaka was founded, and shortly thereafter its ruler was converted to Islam. Melaka
rapidly became the center of a commercial empire that controlled much of the trade in precious spices from the islands to the
east, especially the Moluccas. From Melaka, Islam spread farther to the east, establishing itself in Borneo.

European powers soon began to intrude into the region, each seeking to control the highly profitable spice trade. The Portuguese
captured Melaka in 1511. A century later the Dutch replaced the Portuguese. The British were the main rivals of the Dutch, and
these two powers remained in contention until after the Napoleonic wars. In 1824 they signed the Anglo-Dutch Treaty, which
divided Southeast Asia into spheres of influence that were later to become colonial possessions. By this treaty Britain gave the
Dutch all “factories,” or trading posts, in Sumatra, recognized Dutch control over Java, and agreed not to establish posts or enter
into treaty relations with rulers of islands “south of the Straits of Singapore.” In return the Dutch agreed to give up all their posts and
claims on the Malay peninsula as well as to cede posts in India. This colonial division created the territorial structure of the present-
day federation of Malaysia. In addition to developing control over the Malay peninsula, the British established themselves on the
northern coast of Borneo—now Sarawak and Sabah—as these areas did not lie south of the Straits of Singapore.
During the 19th century, Britain exercised direct rule over the Straits Settlements—George Town, Melaka, and Singapore, a port
founded by Stamford Raffles in 1819. Various Malay sultanates were placed under treaty relationships. James Brooke obtained
permission in the 1840s from the sultan of Brunei in Borneo to pacify—and rule—the southwestern part of Sarawak. In North Borneo,
later Sabah, the British North Borneo Company was granted a charter in 1846. Resistance to this intensification of colonial rule was
widespread, and revolts simmered for years.

Economic change was rapid in the latter part of the 19th century and the start of the 20th. The establishment of British control
enabled Chinese tin miners on the Malay peninsula to expand their activities. Large numbers of Chinese laborers flowed into the
region to work in the mines. Railroads were constructed to help export the tin. Various types of agricultural and plantation
enterprises were established—primarily coffee, tea, and rubber. Rubber was native to the Amazon Basin in South America, but
seeds were transported to London in 1876 and from there to Singapore. After experiments in Singapore, rubber was recommended
as a plantation crop in Malaya, and plantings expanded rapidly.

The native populations participated in the growing cash economy only to a minor extent. On the peninsula they continued to be
hunters, and in the forests they continued to grow irrigated rice and other crops.

As a raw-materials producer, Malaya suffered severely during the years of the Great Depression. In the late 1930s economic
conditions improved, but in 1941 Malaya, Sarawak, and Sabah were all invaded by the Japanese and remained under Japanese
control until 1945. The British returned after the war to reestablish colonial rule in Malaya and took over Sarawak and Sabah. British
plans for independence for its territories met with strong opposition. They included citizenship for both native and immigrant
peoples and were perceived as reducing the status of the Malay princely states. The outbreak of a Communist-led insurgency in
1948 also interfered with plans to grant independence. In 1957 Malaya became independent, but Sarawak and Sabah continued
as British territories for several years.
In 1963 Britain proposed a federation to incorporate not only Malaya but also Singapore, Sarawak, Sabah, and Brunei. All but Brunei
agreed to form the Federation of Malaysia. Singapore withdrew in 1965.

Over the last third of the 20th century the Malays came to dominate the nation's political life. They found it necessary, however, to
maintain a political alliance the Barisan Nasional—with elements in Sarawak and Sabah and with Chinese and Indian groups of
peninsular Malaysia. The Barisan and its predecessors have held a majority in parliament without interruption since the granting of
independence in 1957. Opposition to the Barisan comes from radical factions on the left and on the right.

Civic unrest grew in Malaysia in the early 21st century. Violent clashes between Indians and Malays resulted in dozens of arrests.
Strict laws against illegal immigration were enacted to stem the rising number of illegal aliens. The new laws mandated severe
punishments for violators, prompting the large-scale emigration of foreign workers. (See also East Indies.) Population (2002),
24,370,000.