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            Congressional Research Service
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Malaysia


Updated January 17, 2024


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 claims disputed territory in the South China Sea.

Malaysia was led a single governing coalition from its
independence in 1957 until 2018, but it has undergone
significant political upheaval since then, as a series of
coalition governments have held power following national
elections in 2018 and 2022. A series of weak governments
marked by internal rivalries have struggled to govern
effectively. 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, but the two groups remain
deeply divided on many issues.

Despite its chaotic political processes, Malaysia plays an
active role in regional diplomacy and 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 is 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.
Malaysia participates in each pillar of the Biden
Administration's Indo-Pacific Economic Framework (IPEF)
trade initiative, including trade, supply chains, clean
energy, and anti-corruption.

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).

Democracy and Politics 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. Malaysia


ratronage ana corrupnon are a major part or viaiaysian
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 domestic 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

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