PEOPLE OF MALAYSIA: DIVERSITY, ETHNICITY, IDENTITY, GROUPS

PEOPLE OF MALAYSIA

The first Malaysian team to conquer Mount Everest. on May 23, 1997 was composed of Malay, Chinese and Indian climbers

Nationality: noun: Malaysian(s); adjective: Malaysian. [Source: CIA World Factbook, 2025]

Having had an interesting past and being a part of the international spice route many hundreds of years ago, Malaysia has turned into a mosaic of cultures. Everything from its people to its architecture reflect a colourful heritage and an amalgamated culture. To understand Malaysian culture, you must first get to know its people. Malays, Chinese, Indians and many other ethnic groups have lived together in Malaysia for generations. All these cultures have influenced each other, creating a truly Malaysian culture. The largest ethnic groups in Malaysia are the Malays, Chinese and Indians. In Sabah and Sarawak, there are a myriad of indigenous ethnic groups with their own unique culture and heritage. [Source: Malaysian Government Tourism]

People in Malaysia are called Malaysians but many are ethnically Malays. Malays are a predominately Muslim ethnic group that make up a large portion of the populations in Malaysia, Indonesia and were the descendants for many people in the Philippines. The adjective Malaysian refers to the people of Malaysia and can mean Chinese, Indians or Malays. Malayan refers to the Malay ethnic group. About three fourths of all Malaysians lives in urban areas (compared to 76 percent in the U.S.). The remainder live mostly in small agricultural villages or kapongs (traditional fishing villages). About 83 percent of the population lives in Peninsular Malaysia.

Malays have traditionally lived in the river delta areas and the wet-rice (padi or sawah ) growing regions. Towns and cities have traditionally had large Chinese and Indian populations. [Source: Manning Nash, “Encyclopedia of World Cultures Volume 5: East / Southeast Asia:” edited by Paul Hockings, 1993]

The Federal Constitution of Malaysia states, in article 3(1), that “Islam is the religion of the Federation; but other religions may be practised in peace and harmony in any part of the Federation.” Freedom of religion is further protected under article 11. [Source: Library of Congress Law Library, Legal Legal Reports, 2014]

Ethnic Diversity of Malaysia

Researchgate

Malays make up about 50 percent of the populations, Chinese 24 percent, Indians 7.1 percent, and orang asli (indigenous people such as Dyaks, Kadazan, and Negritos) 11.1 percent. Malays are mostly Muslims. Traditionally farmers and fishermen, they have made great advances in the last 30 years. Most ethnic Chinese are non-Muslim. They have traditionally controlled the businesses in Malaysia. The Indians are descendants of laborers originally from India, Pakistan and Bangladesh. Some of them are Muslims. The orang asli live mostly in Sabah and Sarawak.

Malaysia’s complex ethnographic makeup can be attributed to its geographic situation and its long history as a maritime trading center. Thomas Fuller wrote in the International Herald Tribune, “In the shorthand of contemporary Malaysian conversations, Kuala Lumpur is inhabited by Malays, Chinese and Indians. But scratch deeper and Malays are actually Bugis from Sulawesi, Acehnese from Sumatra, Javanese, Arabs and others descending from many more tribes and ethnic groups. The first Chinese tin-mining magnate of Kuala Lumpur, Yap Ah Loy, was a Hakka. But Hokkien and Cantonese were to follow. The Malaysians known as Indians include Sikhs, Punjabi Muslims and Chettiars, as well as Ceylanese, both Tamils and Sinhalese. [Source: Thomas Fuller, International Herald Tribune, December 3, 2006 /*/]

Ethnic groups: Bumiputera 63.8 percent (Malay 52.8 percent and indigenous peoples, including Orang Asli, Dayak, Anak Negeri, 11 percent), Chinese 20.6 percent, Indian 6 percent, other 0.6 percent, non-citizens 9 percent (2023 estimate). [Source: CIA World Factbook, 2025 =]

Languages: Bahasa Malaysia (official), English, Chinese (Cantonese, Mandarin, Hokkien, Hakka, Hainan, Foochow), Tamil, Telugu, Malayalam, Panjabi, Thai; major-language sample(s):; Buku Fakta Dunia, sumber yang diperlukan untuk maklumat asas. (Bahasa Malaysia); The World Factbook, the indispensable source for basic information.; note: Malaysia has 134 languages (112 indigenous and 22 non-indigenous); in East Malaysia, there are several indigenous languages, and the most widely spoken are Iban and Kadazan. =

Religions: Muslim (official) 63.5 percent, Buddhist 18.7 percent, Christian 9.1 percent, Hindu 6.1 percent, other (Confucianism, Taoism, other traditional Chinese religions) 0.9 percent, none/unspecified 1.8 percent (2020 estimate). =

Malays and Bumiputera

Malay family in Malaysia wearing traditional clothes

Today, the Malays, Malaysia's largest ethnic group, make up more than 50 percent of the population, although this drops to less than 25 percent in East Malaysia. In Malaysia, the term Malay refers to a person who practices Islam and Malay traditions, speaks the Malay language and whose ancestors are Malays. Their conversion to Islam from Hinduism and Theravada Buddhism began in the 1400s, largely influenced by the decision of the royal court of Melaka. The Malays are known for their gentle mannerisms and rich arts heritage. [Source: Malaysian Government Tourism]

Indigenous people of Malaysia are known as “Bumiputras”. They speak Bahasa Malaysia, the national language, and nearly all of them are Muslims. They have their roots in scattered villages and seaside communes known as “kampongs”, and set up small Islamic republics ruled by sultans.

"Bumiputera"(or bumiputra), often shortened to Bumi, is a Malaysian term translating to "son of the soil" or "son of the land". It refers to ethnic Malays, Orang Asli of Peninsular Malaysia, and various indigenous peoples of Sabah and Sarawak, granting them special privileges under the federal constitution, distinct from Chinese or Indian Malaysian populations. Sometimes "Bumiputera" does not include ethnic Malays, which make up about 50 percent of Malaysia’s population. With them Bumiputera make up about 12 percent of the population of Malaysia.

The Malays have traditionally been the poorest group in Malaysia and have been dominated by other groups, particularly the Chinese, but since independent, through their numbers and government policies that favor them, they have become a powerful political and economic force.

About 90 percent of Malays live in peninsular Malaysia. There they have traditionally lived in river delta areas and wet-rice-growing regions. They dominate the east coast states of Kelantan, Terenganu and Pahang. Sizable population live along the West Coast, in Johor, and in Singapore.

Malaysian Malays

In Malaysia, the term “Malay” is both a cultural and legal designation. Historically, it refers to peoples of the Malay Archipelago who have inhabited the region since prehistoric times and who share broad linguistic and cultural characteristics. These populations are diverse in ethnicity, language, and local traditions, but are generally linked by their use of Austronesian languages. [Source: P. Bala “Worldmark Encyclopedia of Cultures and Daily Life,” Cengage Learning, 2009]

In contemporary Malaysia, the definition of “Malay” is specified in the federal constitution. It applies to individuals who profess Islam, practice Malay customs, and conform to Malay cultural norms. Malays are the largest component of the indigenous population, classified as bumiputera, and make up about 53 percent of the country’s population.

Despite often being described as a single group, Malays are internally diverse. Differences exist among subgroups in terms of geographic distribution, customary law (adat), lineage, and kinship systems. These subgroups include communities such as the Javanese, Bugis, and Minangkabau, many of whom are descended from migrants within the Malay Archipelago who settled in the Malay Peninsula during the early period of Malay kingdoms.

Islam and Malay Identity

Ethnic Chinese Malaysian girls with in traditional cheongsams

Malays are by definition Muslims and are not allowed to convert. Since the definition of Malay in the constitution requires them to be Muslim, Islam is an integral part of Malay identity. The vast majority of Malaysian Malays follow Sunni Islam of the Shafi'i school, which heavily influences their food, clothing, festivals, and daily life. In some towns and cities you can find Sufi brotherhoods.

Malaysian Muslims adhere closely to Islamic dietary restrictions. They generally do not drink alcohol or eat pork. They are also careful to ensure that animals are slaughtered for food in accordance with Islamic law. The Malaysian government issues halal certification to food outlets, and signs indicating the availability of halal food are prominently displayed at the entrances of shops and restaurants, including those operated by Western chains such as McDonald's, KFC and Pizza Hut. [Source: Ahmad Yousif, Worldmark Encyclopedia of Religious Practices, Thomson Gale, 2006]

Ethnic and National Identity in Malaysia

Since independence, Malaysia has faced an ongoing debate over the character of its national identity: whether it should be primarily Malay, multicultural, or composed of distinct ethnic communities. This issue reflects tensions between the indigenous status of the Malay population and the political, economic, and cultural rights of immigrant groups, particularly Chinese and Indians. [Source: Thomas Williamson, Countries and Their Cultures, Gale Group Inc., 2001]

A provisional framework emerged during the negotiations for independence in 1957. Political leaders from Malay, Chinese, and Indian communities reached an informal arrangement often referred to as “the bargain.” Under this understanding, Malay political dominance was accepted in exchange for granting citizenship and economic freedom to non-Malay populations. At the same time, the constitution formalized certain provisions favoring Malays, including “special rights” related to land, the Malay language, the position of the Malay rulers, and the status of Islam, justified on the basis of their indigenous standing.

The incorporation of Singapore and the Borneo territories into Malaysia in the 1960s exposed underlying tensions within this arrangement. Economic disparities persisted, with many Malays remaining in poverty, while segments of the Chinese community sought greater political influence. These divisions contributed to Singapore’s separation from Malaysia in 1965 and culminated in the May 1969 riots in Kuala Lumpur. The violence resulted in hundreds of deaths and led to the suspension of parliament for two years.

Young Malaysian Indian women wearing traditional saree for Tamil Puthandu Celebration in Brickfields, Kuala Lumpur

In response, the government imposed restrictions on public discussion of sensitive political and cultural issues and introduced wide-ranging affirmative action policies aimed at improving the economic position of Malays and other bumiputera groups. These measures significantly shaped Malaysia’s political and social development in subsequent decades.

Efforts to promote a more unified national identity continued into the 1990s, notably through the concept of “Bangsa Malaysia,” which proposed a shared national identity across ethnic lines. The initiative generated both support and criticism among different communities. Ongoing debates over these issues indicate that the question of Malaysian national identity remains unresolved.

Migrations and Movements of People in Malaysia

Large-scale migration into Malaysia began after 1800, when British economic expansion created a demand for foreign labor. This led to the arrival of significant numbers of Chinese, Indian, and other regional migrants, including people from Indonesia and Borneo. Early migration was largely temporary. In 1921, only 20.3 percent of the Chinese population and 11.9 percent of the Indian population in Malaya had been born locally, indicating that most migrants were still first-generation arrivals. [Source: Worldmark Encyclopedia of Nations, Thomson Gale, 2007]

Over time, migration patterns shifted toward permanent settlement. Census data show a steady increase in locally born populations among these groups. The proportion of Chinese residents born in Malaya rose to 29.1 percent in 1931, 62.5 percent in 1947, and 74.4 percent in 1957. Among Indians, the percentages increased from 21.1 percent in 1931 to 51.4 percent in 1947 and 64.6 percent in 1957. By 1953, Malays had become a minority within their own territory, prompting the government to introduce immigration restrictions. By 1968, Malays again formed slightly more than half of the population. Additional regulations introduced that year, including stricter passport and border controls with Indonesia and the Philippines, were designed to further limit immigration.

For the period 2000–2004, Malaysia’s net migration rate was estimated at zero per 1,000 people. However, this figure does not account for the unknown number of undocumented migrants, particularly from Indonesia, as well as smaller numbers from the Philippines, Bangladesh, Myanmar, China, and India. The government has generally regarded immigration levels as too high, while considering emigration levels to be acceptable.

New Economic Policy: Malaysia’s Affirmative Action Plan

Distribution of the Bumiputera and Chinese population in Malaysia

The New Economic Policy (NEP) is an affirmative action plan implemented in the 1970s in response to the ethic riots of 1969 to counter the economic dominance of the country's ethnic Chinese minority and improve economic position of naive Malays. The policy has helped indigenous Bumiputras (native Malays, literally "sons of the soil") improve their positions by giving them preferential treatment in education, business and government, and setting quotas that limited the number of Chinese and Indians in universities and public jobs. Malays were given preferences in housing, bank loans, business contracts and government licenses.

The policy is backed by a special clause in the Constitution guaranteeing preferential treatment for Malays. It imposes a 30-percent bumiputra equity quota for publicly listed companies and gives bumiputras discounts on such things as houses and cars. Money is provided by banks and investment firms to Malays and indigenous people to start businesses. Businesses are required to have a bumiputra partner, who would hold at least a 30 percent equity stake.

The policy was adopted when Abdul Razak, the father of current Prime Minister Najib, was Prime Minister. Shamim Adam of Bloomberg wrote: “ The 1969 riots started in part because the Malays felt the Chinese controlled the economy. To raise the share of national wealth held by Malays and indigenous groups to at least 30 percent, Najib's father crafted a policy that gave them cheaper housing as well as priority for college enrollment, government contracts, and shares of publicly traded companies. For the most part, the pro-Malay policy has kept the peace. "Malaysia has done very well, and affirmative action was a strong contributor to the stability that allowed for such development," says Masahide Hoshi, a director at Phalanx Capital Management HK in Hong Kong. "However, these same policies could impede Malaysia in the long term.[Source: Shamim Adam, Bloomberg, September 09, 2010]

Percentage population that are Muslims (Malays)in Malaysia by district, 2020

The policy worked quite well for the Malays. Over they years Malays have taken over many business run in the past by Chinese and Malays prospered without destroying Chinese business. By the 1990s, Malays controlled the nation's major businesses and achieved more prosperity while it seemed relatively few Chinese and Indians resented the quotas. The policies contributed to the growth of a Malay middle class and increased Malay ownership of corporate wealth to about 23 percent by 2013. One minister of Chinese descent told National Geographic, "I've been quite critical of some specific cases when Chinese people got blatantly unfair treatment. But the situation we had at the end of the sixties, where the distribution of wealth was so skewed—it couldn't last. It made for an inherently unstable society. Because of NEP, there is less racial resentment now, and more a feeling of Us—you know, Us Malaysians."

The Malay privileges stem from a "national social contract," drawn up by various races at the time of independence in 1957, which put the majority community on a higher footing in exchange for sharing political power with minorities and giving them citizenship. According to Associated Press: “Today the policy is considered by most Malays as their birthright. No notable politician of any race has ever suggested scrapping it for fear of alienating Malays. [Source: Associated Press, August 6, 2005]

Criticism of the New Economic Policy

Percentage population that are Hindus in Malaysia by district, 2020

Many people feel the New Economic Policy has outlived its usefulness. The Malays have made great advances and are no longer a marginalized people like they were when the policy was adopted in 1970. According to Associated Press : “The policy is widely acknowledged to be only a moderate success, benefiting largely a few Malay elite and taking away from others the incentive to excel. Although Malays form 60 percent of the country's 26 million population, they control only 19 percent of the corporate equity and most of the country's wealth is in the hands of the Chinese. Indians are about 7 percent and are at the bottom rung of the economic ladder.

Critics have argued that the system has at times benefited politically connected elites and created economic inefficiencies. Thomas Fuller wrote in York Times: “The government's apparently indefinite extension of an affirmative action program for the Malays, a policy that has been in place since 1971, has stirred impatience among the country's Chinese and Indians. Terence Gomez, a Malaysian academic who has written widely about Malaysian politics and the ethnic Chinese, and who is now a research coordinator at the United Nations Research Institute for Social Development in Geneva, says the notion that one race should have supremacy is an anachronism in a country where ethnic identities are becoming less important in everyday life. "The idea of being Malay or being Chinese or Indian is not something that is part of their daily thinking or discourse," Gomez said. The political elite, he said, "seems to be caught in a time warp."[Source: Thomas Fuller, New York Times, December 13, 2006 \]

“The government says the affirmative action program is still needed to narrow the overall income gap between the Chinese and Malays, the original justification for the policy. But determining which race has the highest ownership levels in the country is also now a point of contention, involving disputes over how assets should be calculated.” \\

Percentage population that are Buddhists (Chinese) in Malaysia by district, 2020

John Burton wrote in the Financial Times, “There has been a debate whether the policy should remain in place since it is seen as obstacle to Malaysia's international competitiveness. A study by a local think tank suggested that Malays had exceeded the government's goal of owning 30 percent of domestic businesses, which called into question the continuation of the affirmative action policy. The government this week revealed its own statistics on Malay corporate ownership, saying the Malays owned 37 percent of listed companies but only 24 percent of all registered companies. [Source: By John Burton, Financial Times, November 9, 2006]

“Economists warn that the NEP represents a barrier to improving Malaysia’s economic efficiency when the country is facing increased competition for foreign investment from regional rivals such as Vietnam. Mr Abdullah has sought to ease some affirmative action provisions in response to those concerns. But when he announced last year that the government would waive such rules for a new economic zone near Singapore, he was criticised by hardliners in his own United Malays National Organisation, Malaysia’s dominant party.” [Source: John Burton, Financial Times, January 9, 2008]

Malaysia Expands Affirmative Action Program for Ethnic Malays

In September 2013, Malaysian Prime Minister Najib Razak announced a package of financial assistance and policy measures aimed at strengthening the economic position of the ethnic Malay majority. The initiative expanded a long-standing affirmative action framework that has been in place since 1971. [Source: Associated Press, September 14, 2013]

The announcement followed a period of political pressure on Najib after the May 2013 general election, in which the ruling coalition retained power but lost the popular vote. Some opposition figures argued that the new measures were intended to consolidate Najib’s position ahead of internal party elections within the United Malays National Organization (UMNO), the dominant party in the governing coalition.

Distribution of the major native populations from Peninsular Malaysia and Borneo Researchgate

Najib stated that the policies were designed to reduce economic disparities between Malays and minority groups, particularly Chinese and Indians. The measures included the allocation of 1 billion ringgit (approximately $304 million) to support Malay businesses through dedicated funds, increased access to government contracts, youth skills training programs, and expanded housing allocations for Malays in urban state development projects. He emphasized that the initiative was not intended to disadvantage other ethnic groups.

The policy framework has also been linked to emigration among non-Malay populations. Some Malaysian Chinese and others have moved abroad, citing higher wages, governance concerns, and limited merit-based opportunities. A 2011 World Bank report estimated that more than one million Malaysians were living overseas and noted that the continued outflow of skilled workers could affect long-term economic performance.

Opposition politicians, including lawmaker Liew Chin Tong, criticized the continuation of race-based affirmative action, arguing that assistance should be based on socioeconomic need rather than ethnicity. They also contended that the measures did not address structural issues affecting lower-income Malays. Najib, however, maintained that his administration remained committed to economic reform and stated that support programs would incorporate merit-based criteria.

Refugees and Migrants in Malaysia

Malaysia also became a destination for refugees during regional conflicts. Between 1975 and 1996, the country hosted more than 250,000 refugees from Indochina and allowed about 45,000 Filipino refugees, particularly in Sabah, to integrate locally. Between 1975 and 1989, over 250,000 Vietnamese refugees sought asylum in Malaysia, although most were later resettled in other countries. [Source: Worldmark Encyclopedia of Nations, Thomson Gale, 2007]

By 2000, Malaysia had approximately 1.39 million migrants, including about 50,500 refugees. In 2004, the United Nations High Commissioner for Refugees (UNHCR) reported 97,538 persons of concern in the country. This group included 24,905 refugees and 10,322 asylum seekers from Indonesia and Myanmar, as well as 63,311 others of concern, among them 57,197 Filipino Muslims, most of whom lived in Sabah and Kuala Lumpur.

Labor migration remained a major feature of Malaysia’s economy. In 2005, there were about 1.5 million legal foreign workers, mainly from Indonesia, Bangladesh, India, and the Philippines, along with an estimated one million undocumented workers. Foreign workers made up roughly one-quarter of the country’s 10.5 million labor force. Government amnesty programs led to the departure of about 500,000 undocumented workers in mid-2002 and 220,000 in December 2004, with an additional 380,000 leaving or being expelled between October 2004 and February 2005. These measures contributed to labor shortages in sectors such as plantations and construction, prompting the government to again allow some foreign workers to enter on tourist visas and seek employment. In July 2005, authorities also announced that approximately 60,000 refugees in the country would be permitted to work.

Image Sources: Wikimedia Commons

Text Sources: “Encyclopedia of World Cultures Volume 5: East/Southeast Asia:” edited by Paul Hockings; 1993; New York Times; Washington Post; Los Angeles Times; Smithsonian magazine; Encyclopedia.com; National Geographic; Live Science; Malaysia Tourism websites; Malaysia government websites; UNESCO; Metropolitan Museum of Art; Natural History magazine; Times of London; Library of Congress; The Conversation; The New Yorker; Time; BBC; CNN; Reuters; Associated Press; AFP; Lonely Planet Guides; Google AI; Wikipedia; The Guardian and various websites; books and other publications.

Last updated May 2026