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            Congressional Research Service
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Malaysia


Updated August 10, 2023


Overview
The Federation of Malaysia is a majority Muslim
parliamentary democracy in Southeast Asia. It has an
ethnically and religiously diverse population of 32.7
million, with a Malay majority and large ethnic Chinese and
Indian minorities. Malaysia is considered a middle-income
country and is relatively prosperous among Southeast Asian
nations. Malaysia is one of four Southeast Asian nations
that have territorial disputes with China in the South China
Sea.

Malaysia has undergone significant political upheaval in
recent years, as a series of coalition governments have held
power following national elections in 2018 and 2022. In a
country that had been led by a single governing coalition
from Malaysia's independence in 1957 until 2018, the
political instability has resulted in a series of weak
governments marked  by internal rivalries that many
observers say has hindered their effectiveness. The current
government  is headed by Prime Minister Anwar Ibrahim, a
former deputy prime minister and then opposition leader,
who  came to power in November 2022 following elections
in which no party gained a clear majority of parliamentary
seats. Anwar's political coalition, Pakatan Harapan (PH),
joined its longtime rival, the United Malays Nasional
Organization (UNMO)  to form a government, although the
two groups remain deeply divided on many issues.

Despite its chaotic political processes, Malaysia has long
played an active role in regional diplomacy, and it has been
a partner in various U.S. initiatives in Asia, including trade
and security initiatives as well as efforts to combat
terrorism and religious extremism. Malaysia was a founding
member  of the Association of Southeast Asian Nations
(ASEAN),  and sees itself as both a regional leader and a
moderate voice within the Islamic world. Despite generally
cooperative bilateral relations with the United States, some
issues constrain closer ties, including Malaysian opposition
to much of U.S. policy in the Middle East, and U.S.
concerns over some Malaysian economic and human-rights
policies.

Malaysia's economy  is export driven, and it has pursued a
variety of trade negotiations. Malaysia was a member of the
proposed Trans-Pacific Partnership (TPP), from which the
United States withdrew in 2017, and is one of 11 members
of the renamed Comprehensive and Progressive Agreement
for Trans-Pacific Partnership (CPTPP), which it ratified in
September 2022. Malaysia also ratified the Regional
Comprehensive  Economic  Partnership (RCEP) in 2022.

Congress has overseen Malaysia policy, including trade
negotiations in the 2000s and 2010s, as well as U.S.-
Malaysia cooperation on security issues. Some Members of
Congress have expressed concerns about human rights


issues in the country including Malaysia's record in
combatting human  trafficking (Malaysia was listed on the
Tier 2 Watchlist in the State Department's 2023 Trafficking
in Persons report), as well as Malaysia's treatment of
refugees from Burma (Myanmar).

Demnocracy and Politkcs in Malaysia
Until May 2018, Malaysia had been ruled by a single
political coalition since its independence from the United
Kingdom  in 1957. The Barisan Nasional was led by
UMNO,   a Malay-nationalist party that draws its
membership  predominantly from the country's Malay
majority. During its lengthy period in power, UMNO
enacted a series of economic and social preferences for
bumiputera (ethnic Malays and indigenous peoples), and it
derived much of its appeal from issues of ethnic identity.
Anwar  was UMNO's   deputy chairman until 1998, when he
broke with longtime UMNO  leader Mahathir Mohamad  and
was later convicted and imprisoned on charges many
considered politically motivated.


Figure I. Malavsia


vatronage and corruption are a major part of Malaysian
politics. Some observers heralded the changes that resulted
from the 2018 and 2022 elections, both of which brought
peaceful changes of government in a country long seen as
an authoritarian democracy. However, in the view of many
analysts, the weakness of the resulting ruling coalitions has
limited the government's ability to make reforms and
constrained Malaysia from acting as a leader on many
regional issues.

U.S.-Malaysia Relations
The relationship between the United States and Malaysia is
complex. In the 1980s and 1990s, under former Prime
Minister Mahathir, Malaysia was one of the leading voices
behind building the East Asia Economic Caucus, and
Asia-only regional institutions that excluded the United
States. Since then, Malaysia has generally welcomed a

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