Malaysia is a federal constitutional monarchy in Southeast Asia. It consists of thirteen states and three federal territories and has a total landmass of 329,847 square kilometres (127,350 sq mi). It is separated by the South China Sea into two regions, Peninsular Malaysia and Malaysian Borneo (also known as West and East Malaysia respectively). Land borders are shared with Thailand, Indonesia, and Brunei, and maritime borders exist with Singapore, Vietnam, and the Philippines. Peninsular Malaysia is connected to Singapore via two bridges, one which transports traffic and water and a second link just for traffic. The capital city is Kuala Lumpur, while Putrajaya is the seat of the federal government. The population is over 27.5 million.
Malaysia has its origins in the Malay Kingdoms present in the area which, from the 18th century, became subject to the British Empire. The first British territories were known as the Straits Settlements, with the other states forming protectorates. The states on Peninsular Malaysia, then known as Malaya, was first unified as the Malayan Union in 1946. Malaya was restructured as the Federation of Malaya in 1948, and achieved independence on 31 August 1957. Malaya united with Sabah, Sarawak, and Singapore to form Malaysia on 16 September 1963. However, less than two years later in 1965, Singapore withdrew from the federation, and became an independent city state. Since independence, Malaysia has had one of the best economic records in Asia, with GDP growing an average 6.5% for almost 50 years. The economy has traditionally been fuelled by its natural resources, but is now expanding in the sectors of science, tourism, commerce and medical tourism.
The head of state is the Yang di-Pertuan Agong, an elected monarch chosen from the hereditary rulers of the nine Malay states every five years. The head of government is the Prime Minister. The government system is closely modelled on the Westminster parliamentary system and the legal system is based on English Common Law. The country is multi-ethnic and multi-cultural, factors that influence its culture and play a large role in politics.
Malaysia contains the southernmost point of continental Eurasia, Tanjung Piai, and is located near the equator and has a tropical climate. It has a biodiverse range of flora and fauna, and is considered a megadiverse country. It is a founding member of the Association of Southeast Asian Nations and the Organisation of the Islamic Conference, and a member of Asia-Pacific Economic Cooperation, the Commonwealth of Nations, and the Non-Aligned Movement.
Malaysia is that rare country with an unequivocal national narrative. It goes something like this: Malaysia's 28 million people, comprising mainly Malays, Chinese and Indians, make up a moderate and modern emerging democracy. Unlike members of other multiethnic countries, they respect one another's beliefs and values and share a commitment to achieving prosperity. The official religion is Islam, but other faiths are freely allowed and celebrated. This is one harmonious place.
Much of that narrative is true — but not all of it. Malaysia's economic miracle has stalled, and while the nation is, indeed, somewhat pluralistic, it is no melting pot. Indeed, it is a society where people define themselves first and foremost by race.
The country's political leadership has in some respects reinforced those ethnic identities. For the past 40 years, policymakers have doled out special privileges — in education and business — to one community: the majority Malays. The program is one of modern history's greatest experiments in social engineering and possibly the world's most extensive attempt at affirmative action. But the policies have also bred resentment among minorities, distorted the economy and undermined the concept of a single Malaysian identity.
Now a movement is gaining strength to finally change the system — and it's coming from the very top. Prime Minister Najib Razak, 57, has surprised the country by advocating a fundamental reform of the pro-Malay program first introduced, ironically, by his father, who was Malaysia's Prime Minister in the 1970s. Though the specifics of the new policies remain hazy, Najib's intent is not. "I want Malaysia to be globally competitive," he told TIME in an exclusive interview. "For that, we need to get every single Malaysian to be together.
Najib's proposals have simultaneously raised hopes, ire and fear. The mere idea of changing the affirmative-action system has reopened old wounds in Malaysian society and reactivated the long-running debate on how best to fuse Malays, Chinese and Indians into one nation. The direction Malaysia takes, moreover, has repercussions beyond its shores. The issues raised by Najib's proposals are relevant to any upwardly mobile developing economy, especially a multicultural one: how to increase wealth and do so equitably.
