History

Malaysia was under European domination from the 15th century, firstly under the Portuguese, then the Dutch and, finally, the British. An independent, multi-racial Federation of Malaya was established in 1957. In 1963 the Federation, together with Singapore, Sarawak and British North Borneo (which was renamed Sabah), formed a new federation called Malaysia. Singapore separated from Malaysia to become an independent republic a few years later.
 
One immediate problem following independence was the determination of a national identity. Malaysia was a mix of people from many races and cultures, and uniting them under a common flag was not an easy task. Because Malays represented the majority, the Constitution gave them permanent posts in government, made Islam the national religion, and made Malay the national language.

In 1969, riots between the Malay and the Chinese, who were perceived to control a large portion of the Malaysian economy, broke out and resulted in the controversial New Economic Policy. The policy was intended to increase the share of the economic wealth owned by the Bumiputras ("indigenous people", which includes the majority Malays but not always the indigenous population) as opposed to other ethnic groups. Malaysia has since maintained a delicate ethno-political balance, with a system of government that has attempted to combine overall economic development with political and economic policies that favour Bumiputras.