Malaysia a country study Foreign Area Studies OF MINNESOTA 1 UNIVERSITY The American University DEP03I1URY PU8N. Edited by U.S.-G.P.O.-D-301-A Frederica M. Bunge Research completed AUG 4 1986 January 1984 DOCUMENTS ST. PAUL CAMPUS LIBRARIES Contents Poge Foreword iii Acknowledgments v Preface xi Country Profile xv Introduction xxiii Chapter 1. Historical Setting 1 Donald M . Seekins EARLY HISTORY OF THE MALAY WORLD— Srivijaya to the Fourteenth Century —Borneo —THE MALACCA SULTANATE AND THE EVOLUTION OF MALAY IDENTITY — Malacca and Islam —European Intrusion and the Fall of Malacca —The Malay States to the End of the Eighteenth Century — Brunei and the Northern Borneo Coast— THE BRITISH COLONIAL PRESENCE— Fed erated and Unfederated Malay States, 1826-1909— De velopments on Borneo— COLONIAL ECONOMY AND SOCIETY—The Immigrant Communities —The Indian, Arab, and Eurasian Communities —The Malay Response — WAR, EMERGENCY, AND INDEPENDENCE— The Malayan Union and the Growth of Political Movements — The Emergency —The Alliance and Independence — Sarawak and Sabah— THE CREATION OF MALAYSIA— External Threats: "Confrontation" and the Philippine Claim to Sabah—The Secession of Singapore —The Kuala Lumpur Riots of May 1969 and Their Aftermath — Economic Development and the New Economic Policy Chapter 2. The Society and Its Environment 67 Charles Hirschman ENVIRONMENT— Topography— Climate and Vegeta tion —Natural Resources — Transportation — Regional Di visions— POPULATION GROWTH AND DISTRIBU TION— Mortality, Fertility, and Family Planning — Popu lation Distribution by State — Urbanization, Urban Growth, and Internal Migration— ETHNICITY AND THE PLURAL SOCIETY— Patterns of Immigration- Colonialism and Its Impact on Ethnic Relations —Ethnic Antagonism and Conflict — Ethnic Composition and Sub divisions — Ethnic Socioeconomic Inequality —Constitu tional Issues —LANGUAGE —Malay (Bahasa Malaysia) — Chinese Languages — Tamil and Other Languages — Lan- Vll guage Policy — RELIGION — Islam —Chinese Religions — Hinduism—Christianity— EDUCATION— A Historical Perspective —-Educational Expansion and Inequality — Higher Education—HOUSEHOLD AND FAMILY STRUCTURE— Malay Households and Families- Chinese Households and Families —Indian Households and Families Chapter 3. The Economy 129 Stephen B . Wickman PATTERNS OF DEVELOPMENT— EMPLOYMENT AND INCOME — Employment and Labor Relations —In come Distribution and Living Standards —THE CORPO RATE SECTOR— GOVERNMENT PLANNING AND POLICY — Fiscal Policy and Incentives — Finance and Monetary Policy—INTERNATIONAL FINANCE AND TRADE— AGRICULTURE, FORESTRY, AND FISH ING — Land Use and Tenure — Land Development and Technical Support — Farm Production and Trade —Fores try— Fishing— INDUSTRY AND SERVICES— Manufac turing — Mining— Construction and Utilities — Transporta tion, Communications, and Other Services Chapt er 4. Government and Politics 185 Rinn-Sup Shinn THE FEDERAL CONSTITUTION OF MALAYSIA— THE FEDERAL GOVERNMENT— The Conference of Rulers —The Prime Minister and the Cabinet —Statutory Bodies —The Parliament —The Judiciary —The Public Ser vices— STATE GOVERNMENT— Rulers and Gover nors— Executive Councils — Legislative Assemblies — Local Government—THE ELECTORAL SYSTEM- POLITICS— The Politics of Communalism— Recent Polit ical Development —The Politics of Compromise — POWER STRUCTURE—POLITICAL PARTIES—The National Front Parties —Opposition Parties— FOREIGN AFFAIRS—The Evolution of Foreign Policy —Relations with Selected Countries Chapter 5. National Security 233 Melinda Cooke INTERNAL SECURITY AND PUBLIC ORDER—Com munal and Social Issues —Communist Insurgency —Viet namese Refugees— THE SECURITY SETTING AND THE NATIONAL DEFENSE CONCEPT— Five-Power Defense Arrangement — Foreign Military Relations —THE Vlll ARMED FORCES IN THE NATIONAL LIFE— Man power and Personnel — Defense Spending and Industry — THE ORGANIZATION AND STRUCTURE OF THE ARMED FORCES—The Ministry of Defense— Army- Navy —Air Force —Ranks and Conditions of Service — POLICE —Historical Development —Organization and Structure— Personnel and Training—CRIME AND THE CRIMINAL JUSTICE SYSTEM— Security Offenses- Penal Law —Criminal Procedure —The Prison Svstem. Appendix. Tables 293 Biblography 317 Glossary 349 Index 353 List of Figures 1 Malaysia, Position in Southeast Asia, 1 984 xxii 2 Historical Map of the Malay World 8 3 Malaya under British Rule 34 4 Topography 72 5 Major Economic Indicators, 1960-83 134 6 Agricultural Activity, 1983 165 7 Industrial Activity and Transportation, 1 983 i 177 8 Governmental Organization, 1984 195 9 Administrative Divisions, 1984 204 10 Communist Insurgency in Peninsular Malaysia and Southern Thailand, 1 984 249 11 Ranks, Insignia, and United States Equivalents for Malaysian Armed Forces, 1 984 274 IX Chapter 2. The Society and Its Environment Wooden carving from a palace in Terengganu . A flowery motif girds a verse from the Quran. MALAYSIAN SOCIETY IS a complex mosaic of regions, social classes, rural-urban divisions, and ethnic communities. The most central alignment is ethnicity, which serves to define the plural society of Malaysia —plural in the sense that ethnic boundaries coincide with most social spheres and institutions. Within Malaysia ethnicity is closely related to religion, politics, culture, residence, and socioeconomic position. In the two and one-half decades since independence in 1957, there has been progress to ward the creation of a common national (Malaysian) identity and some lessening of interethnic disparities. Nonetheless, the perva sive influence of ethnicity continues to affect all spheres of social life, from food taboos to priorities for government expenditures. Contemporary ethnic differences did not simply arise from primordial passions but were reinforced in part through official policies of the colonial era. With independence and the rise of so cial aspirations, competition in the economy and polity has often centered on questions of ethnic representation and equity. Yet, even with the high degree of ethnic consciousness and occasional episodes of ethnic violence, there is also a large measure of toler ance, and close personal ties span ethnic boundaries. Ethnocen- trism and stereotypes abound, but virulent racism is largely ab sent. According to 1980 census figures, Peninsular Malaysia's ethnic balance is roughly 56 percent Malay, 33 percent Chinese, 10 per cent Indian, and a remaining category of 1 percent that includes Eurasians, Thais, and other small nationality groups. In Sabah and Sarawak —which together with the states of Peninsular Malaysia comprise Malaysia—there is an even greater level of ethnic diversity. The 1980 population of Sabah was divided primarily into Pribumis (83 percent) and Chinese (16 percent); In dians and others made up the remainder. The Pribumi category is a broad classification of indigenous peoples that includes Kadazan, Murut, Bajau, Malays, and Indonesians. In Sarawak the major ethnic divisions are Iban (30 percent), Chinese (29 percent), Malays (20 percent), Bidayuh (8 percent), Melanau (6 percent), various indigenous peoples (5 percent), and others (1 percent). Persons are counted in the census as Malay on the basis of self- identification. Individuals simply report the ethnic community to which they belong. To be identified as Malay according to the 69 Malaysia: A Country Study Constitution, however, one must profess Islam, habitually speak Malay (Bahasa Malaysia), follow Malay customs, and fulfill certain conditions of birth. Qualifications for Malaysian citizenship status are also specified in the Constitution. Social life is also influenced by a broad array of other features and institutions, including family structure, economic roles, tra ditional and modern schooling, religious belief and organization, language use, the mass media, and the availability of medical ser vices. In all spheres of social life, some aspects reflect continuity with the past; however, there is also a strong presence of moder nization and change. The most powerful influence on Malaysian social life has been the rapid pace of economic development over the past 25 years. The effects of this development are not only evi dent in higher levels of consumption but are also visible in the physical transformation of Kuala Lumpur and other large cities and in the pervasive influences of modern curative medicine, telecommunications, and education throughout the country. These changes are most evident in Peninsular Malaysia, but there have also been significant changes in the states of Sabah and Sarawak. Malaysia is also in the midst of a demographic transition from high birth and death rates to lower levels of both vital indi cators. Population growth remains high during this transitional period, for mortality has declined more rapidly than fertility. If fertility continues to decline in the coming years as it has in the past, population growth should begin to level off in the coming decades. Past and present changes in demographic processes and structures affect ethnic composition, urban-rural balance, and family structure, as well as demands for education, employment, housing, and other dimensions of economic and social life. Social change in Malaysia is often glacial in character but often not clearly visible to contemporary observers. However, in re cent years economic development has led to truly revolutionary change. Although modernization is transforming many attributes of Malaysian society, the evolving patterns may not necessarily follow Western models. The examples of Japan and