LAND AND RESOURCES

Peninsular Malaysia is dominated by mountains running several parallel north-south ranges. The highest, the Main Range, has peaks over 2,100 m. Sarawak consists largely of coastal plain. In Sabah the narrow coastal plain gradually gives way to a mountainous region that divides Malaysia from Indonesia. Mount Kinabalu in Sabah, at 4,101 m, is the highest point in Malaysia.

Malaysia's leading mineral resources are petroleum and natural gas, tin, bauxite, copper, and iron ore.

PEOPLE The indigenous Malays compose more than 50% of the population. They are predominantly rural and traditionally have held the greatest political power. Another 30% of the population are Chinese, the descendants of late-19th- and early-20th-century immigrants. Primarily urban dwellers, the Chinese have traditionally dominated the economy. Non-Malay indigenous tribal peoples, who represent 8% of the population, are heavily concentrated in East Malaysia. Dayaks, Ibans, and Kadazans are the largest ethnic groups.

The official language is Bahasa Malaysia, but English is also widely spoken. Various Chinese and Indian languages are common. The state religion is Islam, to which the Malays adhere. Buddhism and Hinduism are the predominant religions among the Chinese and Indians, respectively.

ECONOMIC ACTIVITY

Industry (including mining, manufacturing, construction, and power) is the largest sector of the economy, contributing about 40% of the national income. Malaysia remains one of the world's leading producers of tin, but tin now accounts for less than 2% of total export revenue. Food products, electronic devices and electrical machinery, chemicals, and rubber products are major products, and Malaysia is the world's leading exporter of semiconductor devices. It is also the world's leading producer of natural rubber and palm oil. Agriculture contributes about 16% of the national income; tourism is also an important factor in Malaysia's economy.

GOVERNMENT

Malaysia's government is modeled after the British system, albeit modified because Malaysia's federal structure incorporates 13 states and two federal territories. A monarch, the supreme ruler, is elected every five years by the nine traditional rulers of Malaya, the sultans. Real power, however, is in the hands of the Prime Minister and the Cabinet, and the constitution was amended in 1993 to limit the legal immunity of the nine hereditary rulers. The bicameral parliament is composed of a partially appointed senate and a house of representatives whose members are elected by universal adult suffrage.

HISTORY

In the 9th century Malaysia was the seat of the Buddhist Srivijaya Empire. Beginning in the 14th century, the population was converted to Islam. The Portugese took Malacca in 1511, but were ousted by the Dutch in 1641. The British formed a trading base of the East India Company in Penang in 1786, and in 1826 united Penang, Singapore, and Malacca into the Straits Settlement.

During World War II the Japanese held the peninsula, but in 1946 the British resumed control. In 1948 the Malayan Communist party began a guerrilla insurrection called the Emergency, which was not suppressed until 1960. In 1957 the Federation of Malaya attained independence, and Tunku Abdul Rahman became the first prime minister. The Federation of Malaysia, consisting of Malaya, Singapore, Sarawak, and Sabah, was created in 1963; Singapore seceded from it in 1965.

In 1969, Abdul Rahman resigned. A resurgent Communist guerrilla movement, which threatened political stability in the 1970s, ended with the signing of a cease-fire in 1989. In 1981, leader of the United Malay National Organization (UNMO), Mahathir Mohammad, became Prime Minister.