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During the late 18th and 19th centuries, Great Britain established colonies and protectorates in the area of current Malaysia; these were occupied by Japan from 1942 to 1945. In 1948, the British-ruled territories on the Malay Peninsula formed the Federation of Malaya, which became independent in 1957. Malaysia was formed in 1963 when the former British colonies of Singapore and the East Malaysian states of Sabah and Sarawak on the northern coast of Borneo joined the Federation. The first several years of the country's history were marred by a Communist insurgency, Indonesian confrontation with Malaysia, Philippine claims to Sabah, and Singapore's secession from the Federation in 1965. During the 22-year term of Prime Minister MAHATHIR bin Mohamad (1981-2003), Malaysia was successful in diversifying its economy from dependence on exports of raw materials to expansion in manufacturing, services, and tourism.
Southeastern Asia, peninsula bordering Thailand and northern one-third of the island of Borneo, bordering Indonesia, Brunei, and the South China Sea, south of Vietnam
note:highly pathogenic H5N1 avian influenza has been identified in this country; it poses a negligible risk with extremely rare cases possible among US citizens who have close contact with birds
(2009)
Muslim 60.4%, Buddhist 19.2%, Christian 9.1%, Hindu 6.3%, Confucianism, Taoism, other traditional Chinese religions 2.6%, other or unknown 1.5%, none 0.8% (2000 census)
note:nominally headed by paramount ruler (commonly referred to as the King) and a bicameral Parliament consisting of a nonelected upper house and an elected lower house; all Peninsular Malaysian states have hereditary rulers (commonly referred to as sultans) except Melaka and Pulau Pinang (Penang); those two states along with Sabah and Sarawak in East Malaysia have governors appointed by government; powers of state governments are limited by federal constitution; under terms of federation, Sabah and Sarawak retain certain constitutional prerogatives (e.g., right to maintain their own immigration controls)
13 states (negeri-negeri, singular - negeri) Johor, Kedah, Kelantan, Melaka, Negeri Sembilan, Pahang, Perak, Perlis, Pulau Pinang, Sabah, Sarawak, Selangor, and Terengganu; and 1 federal territory (wilayah persekutuan) with three components, city of Kuala Lumpur, Labuan, and Putrajaya
based on English common law; judicial review of legislative acts in the Supreme Court at request of supreme head of the federation; Islamic law is applied to Muslims in matters of family law and religion; has not accepted compulsory ICJ jurisdiction
chief of state: King - Sultan MIZAN Zainal Abidin (since 13 December 2006); (the position of the king is primarily ceremonial)
head of government:
Prime Minister Mohamed NAJIB bin Abdul Razak (since 3 April 2009); Deputy Prime Minister MUHYIDDIN bin Mohamed Yassin (since 9 April 2009)
cabinet:
Cabinet appointed by the prime minister from among the members of Parliament with consent of the king
elections:
kings are elected by and from the hereditary rulers of nine of the states for five-year terms; election last held on 3 November 2006 (next to be held in 2011); prime minister designated from among the members of the House of Representatives; following legislative elections, the leader who commands the support of the majority of members in the House becomes prime minister (since independence this has been the leader of the UMNO party)
election results:
Sultan MIZAN Zainal Abidin elected king; in practice, selection is based on principle of rotation among rulers of states
bicameral Parliament or Parlimen consists of Senate or Dewan Negara (70 seats; 44 appointed by the king, 26 elected by 13 state legislatures; serve three-year terms with limit of two terms) and House of Representatives or Dewan Rakyat (222 seats; members elected by popular vote; serve up to five-year terms)
elections:
House of Representatives - last held on 8 March 2008 (next to be held by June 2013)
election results:
House of Representatives - percent of vote - BN coalition 50.3%, opposition parties 46.8%, others 2.9%; seats - BN coalition 140, opposition parties 82
Civil Courts include Federal Court, Court of Appeal, High Court of Malaya on peninsula Malaysia, and High Court of Sabah and Sarawak in states of Borneo (judges are appointed by the king on the advice of the prime minister); Sharia Courts include Sharia Appeal Court, Sharia High Court, and Sharia Subordinate Courts at state-level and deal with religious and family matters such as custody, divorce, and inheritance only for Muslims; decisions of Sharia courts cannot be appealed to civil courts
National Front (Barisan Nasional) or BN (ruling coalition) consists of the following parties: Gerakan Rakyat Malaysia Party or PGRM [KOH Tsu Koon]; Liberal Democratic Party (Parti Liberal Demokratik - Sabah) or LDP [LIEW Vui Keong]; Malaysian Chinese Association (Persatuan China Malaysia) or MCA [ONG Tee Keat]; Malaysian Indian Congress (Kongres India Malaysia) or MIC [S. Samy VELLU]; Parti Bersatu Rakyat Sabah or PBRS [Joseph KURUP]; Parti Bersatu Sabah or PBS [Joseph PAIRIN Kitingan]; Parti Pesaka Bumiputera Bersatu or PBB [Abdul TAIB Mahmud]; Parti Rakyat Sarawak or PRS [James MASING]; Sarawak United People's Party (Parti Bersatu Rakyat Sarawak) or SUPP [George CHAN Hong Nam]; United Malays National Organization or UMNO [NAJIB bin Abdul Razak]; United Pasokmomogun Kadazandusun Murut Organization (Pertubuhan Pasko Momogun Kadazan Dusun Bersatu) or UPKO [Bernard DOMPOK]; People's Progressive Party (Parti Progresif Penduduk Malaysia) or PPP [M.Kayveas]; Sarawak Progressive Democratic Party or SPDP [William MAWAN])
People's Alliance (Pakatan Rakyat) or PR (opposition coalition) consists of the following parties:
Democratic Action Party (Parti Tindakan Demokratik) or DAP [KARPAL Singh]; Islamic Party of Malaysia (Parti Islam se Malaysia) or PAS [Abdul HADI Awang]; People's Justice Party (Parti Keadilan Rakyat) or PKR [WAN AZIZAH Wan Ismail]; Sarawak National Party or SNAP [Edwin DUNDANG]
independent party:
Sabah Progressive Party (Parti Progresif Saban) or SAPP [YONG Teck Lee]
14 equal horizontal stripes of red (top) alternating with white (bottom); there is a blue rectangle in the upper hoist-side corner bearing a yellow crescent and a yellow 14-pointed star; the crescent and the star are traditional symbols of Islam; the design was based on the flag of the US
Malaysia, a middle-income country, has transformed itself since the 1970s from a producer of raw materials into an emerging multi-sector economy. After coming to office in 2003, former Prime Minister ABDULLAH tried to move the economy farther up the value-added production chain by attracting investments in high technology industries, medical technology, and pharmaceuticals. The Government of Malaysia is continuing efforts to boost domestic demand to wean the economy off of its dependence on exports. Nevertheless, exports - particularly of electronics - remain a significant driver of the economy. As an oil and gas exporter, Malaysia has profited from higher world energy prices, although the rising cost of domestic gasoline and diesel fuel forced Kuala Lumpur to reduce government subsidies. Malaysia "unpegged" the ringgit from the US dollar in 2005 and the currency appreciated 6% per year against the dollar in 2006-08. Although this has helped to hold down the price of imports, inflationary pressures began to build in 2007 - in 2008 inflation stood at nearly 6%, year-over-year. The government presented its five-year national development agenda in April 2006 through the Ninth Malaysia Plan, a comprehensive blueprint for the allocation of the national budget from 2006-10. ABDULLAH unveiled a series of ambitious development schemes for several regions that have had trouble attracting business investment. Real GDP growth averaged about 6% per year under ABDULLAH, but regions outside of Kuala Lumpur and the manufacturing hub Penang did not fare as well. The central bank maintains healthy foreign exchange reserves and the regulatory regime has limited Malaysia's exposure to riskier financial instruments and the global financial crisis. Decreasing worldwide demand for consumer goods is expected to hurt economic growth in 2009 and beyond, however.
Peninsular Malaysia - rubber and oil palm processing and manufacturing, light manufacturing, electronics, tin mining and smelting, logging, timber processing; Sabah - logging, petroleum production; Sarawak - agriculture processing, petroleum production and refining, logging
general assessment: modern system; international service excellent
domestic:
good intercity service provided on Peninsular Malaysia mainly by microwave radio relay; adequate intercity microwave radio relay network between Sabah and Sarawak via Brunei; domestic satellite system with 2 earth stations; combined fixed-line and mobile cellular teledensity 125 per 100 persons
international:
country code - 60; landing point for several major international submarine cable networks that provide connectivity to Asia, Middle East, and Europe; satellite earth stations - 2 Intelsat (1 Indian Ocean, 1 Pacific Ocean) (2008)
by type:
bulk carrier 12, cargo 97, carrier 1, chemical tanker 34, container 46, liquefied gas 33, passenger/cargo 5, petroleum tanker 71, roll on/roll off 3, vehicle carrier 4
foreign-owned:
40 (Germany 1, Hong Kong 14, Japan 4, Russia 2, Singapore 16, Sweden 3)
registered in other countries:
68 (Bahamas 13, Marshall Islands 3, Norway 1, Panama 12, Philippines 1, Saint Kitts and Nevis 1, Singapore 27, Thailand 3, Tuvalu 1, US 2, unknown 4) (2008)
the International Maritime Bureau reports the territorial and offshore waters in the Strait of Malacca and South China Sea as high risk for piracy and armed robbery against ships; numerous commercial vessels have been attacked and hijacked both at anchor and while underway; hijacked vessels are often disguised and cargo diverted to ports in East Asia; crews have been murdered or cast adrift; increased naval patrols in 2009 resulted in significantly reduced numbers of incidents
Malaysian Armed Forces (Angkatan Tentera Malaysia, ATM): Malaysian Army (Tentera Darat Malaysia), Royal Malaysian Navy (Tentera Laut Diraja Malaysia, TLDM), Royal Malaysian Air Force (Tentera Udara Diraja Malaysia, TUDM) (2009)
Malaysia has asserted sovereignty over the Spratly Islands together with China, Philippines, Taiwan, Vietnam, and possibly Brunei; while the 2002 "Declaration on the Conduct of Parties in the South China Sea" has eased tensions over the Spratly Islands, it is not the legally binding "code of conduct" sought by some parties; Malaysia was not party to the March 2005 joint accord among the national oil companies of China, the Philippines, and Vietnam on conducting marine seismic activities in the Spratly Islands; disputes continue over deliveries of fresh water to Singapore, Singapore's land reclamation, bridge construction, and maritime boundaries in the Johor and Singapore Straits; in November 2007, the ICJ will hold public hearings in response to the memorials and countermemorials filed by the parties in 2003 and 2005 over sovereignty of Pedra Branca Island/Pulau Batu Puteh, Middle Rocks and South Ledge; ICJ awarded Ligitan and Sipadan islands, also claimed by Indonesia and Philippines, to Malaysia but left maritime boundary and sovereignty of Unarang rock in the hydrocarbon-rich Celebes Sea in dispute; separatist violence in Thailand's predominantly Muslim southern provinces prompts measures to close and monitor border with Malaysia to stem terrorist activities; Philippines retains a dormant claim to Malaysia's Sabah State in northern Borneo; Brunei and Malaysia agreed in September 2008 to resolve their offshore and deepwater seabed dispute, resume hydrocarbon exploration and renounce any territorial claims on land; piracy remains a problem in the Malacca Strait
current situation: Malaysia is a destination and, to a lesser extent, a source and transit country for women and children trafficked for the purpose of commercial sexual exploitation, and men, women, and children for forced labor; Malaysia is mainly a destination country for men, women, and children who migrate willingly from South and Southeast Asia to work, some of whom are subjected to conditions of involuntary servitude by Malaysian employers in the domestic, agricultural, construction, plantation, and industrial sectors; to a lesser extent, some Malaysian women, primarily of Chinese ethnicity, are trafficked abroad for commercial sexual exploitation
tier rating:
Tier 2 Watch List - Malaysia improved from Tier 3 to the Tier 2 Watch List for 2008 when it enacted comprehensive anti-trafficking legislation in July 2007; however, it did not take action against exploitative employers or labor traffickers in 2007; the government has not ratified the 2000 UN TIP Protocol (2008)
drug trafficking prosecuted vigorously and carries severe penalties; heroin still primary drug of abuse, but synthetic drug demand remains strong; continued ecstasy and methamphetamine producer for domestic users and, to a lesser extent, the regional drug market
The online Factbook is updated bi-weekly. ISSN 1553-8133
For additional information on government leaders in selected foreign countries, go to World Leaders.
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