However, after the outbreak of the Sino-Japanese War in the 1930’s, Chinese emigration to Malaya stopped significantly, thereby stabilising the demographic situation. In 1957, Malay became an independent nation, with 55% Malay population, and with rich export industries, consisting of rubber, tin, palm oil, and iron ore.

1963 was a significant year for the Malay world, when Malaya became Malaysia with the acquisition of the British territories in North Borneo and Singapore. It was followed by various political onslaughts like confrontation with Indonesia, the race riots of 1969, the establishment of emergency rule and a curtailment of political life and civil liberties forever. However, after the New Economic Policy introduced by the government in 1971, the Malaysian economy improved significantly, with the elimination of rural poverty, and with the identification between race and economic function. The political culture of Malaysia, on the other hand, remains increasingly authoritarian till recent times, with a notable decline of democracy. The question of when and how Malaysia will acquire a multi-party democracy, a free press, an independent judiciary and the restoration of civil and political liberties remain unanswered, despite its economic maturity which has been quite a phenomenon in the Malaysian history.

Malaysia Economy:

With a small and a relatively open economy, Malaysia is a country on the move. Earlier what had been a country dependent on agriculture and primary commodities has today grown to be an export-driven nation, thriving on high technology, knowledge-based and capital-intensive industries.

This drastic structural transformation of Malaysia's economy which has been quite spectacular in these forty years, has been the result of pragmatism and a number of decisive steps taken by the Malaysian government. Largely depending on its wealth of mineral resources, fertile soils, agriculture and manufacturing, the Malaysian economy achieved average annual growth rates of about 7% during the last decade. And it has been possible because the government did not rest on its laurels, but took important steps instrumental to the country’s economic progress, like eradicating poverty with a controversial race-conscious program called New Economic Policy (NEP). First established in 1971, it was designed in particular to enhance the economic standing of ethnic Malays and other indigenous people, collectively known as “bumiputras”.