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Ml     Congressonal Research Service
   ~Informinj the legislative debate since 1914


Malaysia


Updated May 22, 2019


Overview
The Federation of Malaysia is a majority Muslim
parliamentary democracy in Southeast Asia. It has an
ethnically and religiously diverse population of 31.8
million, with a Malay majority and large ethnic Chinese and
Indian minorities. Malaysia is considered a middle-income
country, relatively prosperous among Southeast Asian
nations.

Malaysian politics underwent substantial change in 2018,
when an opposition coalition known as Pakatan Harapan
(Alliance of Hope), led by former Prime Minister Mahathir
Mohamad, defeated the ruling Barisan Nasional coalition in
nationwide elections. It was the first change of government
in Malaysia's history. Mahathir, who had been Prime
Minister from 1981-2003 under the ruling coalition before
later forming an opposition party, ran a campaign
promising to fight the corruption of the previous
government. Many heralded the peaceful transfer of power
as a sign of democratic development in a country long seen
as an authoritarian democracy.

Malaysia plays 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. It is one of four
Southeast Asian nations that have territorial disputes with
China in the South China Sea, and its export-led economy
has encouraged it to undertake trade negotiations with the
United States and others. Malaysia was a member of the
Trans-Pacific Partnership (TPP), from which the United
States withdrew in 2017, and it is one of 11 members of the
renamed Comprehensive and Progressive Agreement for
Trans-Pacific Partnership (CPTPP).

Malaysia was an original member of the Association of
Southeast Asian Nations (ASEAN), and it 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 remain obstacles to closer
ties, including Malaysian opposition to much U.S. policy in
the Middle East, and U.S. concerns over some Malaysian
economic and human-rights policies.

Democracy and Politics in Maaysa
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 the
United Malays Nasional Organization (UMNO), a Malay-
nationalist party that draws its membership predominantly
from the country's Malay majority. 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. Mahathir was an


UMNO member until 2016, when he left to form a new
party, Bersatu.

The 2018 election led to a peaceful and democratic change
of government in a region where many analysts have
perceived a decline in democratic institutions in recent
years. Despite uneven electoral representation favoring
Malay-dominated districts and strong government influence
over media outlets, Mahathir's coalition won 122 seats in
Malaysia's 222-seat parliament. Polling suggested that
Malaysian voters were deeply concerned with corruption
under the government of Prime Minister Najib Razak, who
has since been indicted for money laundering related to his
chairmanship of 1MDB, a sovereign wealth fund.

   Population/area: 3,1.8 million with
   rowtch rate of 1ao(2o08)
   Slightly large than Neo M rexicoM               u
   Government type:                  *'AA~
   Fsederal Constittion cal Mionar chyis u
   (Par amentary Democracy) l n      I i ,
   Prime Minister: nM                           wt
   Mhnahathi Mohm aad
   Chief of State:
   King Sultan Abdullah Sultan Ahm-ad Shah
   GDP: $29,100 per capita ppp wvith 5.9%ugrowrth (2017)
   GDP Sector of origin: a sicultur e   insry 37l6% d i
   Services 53vne -  (2017a
   Religions: slathi 61.3% Buddhim 198, Chrmstianity 2,4
   Hinduist 6.n% t201o)
   Ethnictties: BuLmiputera (Malay & other indigenous)  62% ,,
   Chinese 205,Indiain 5.7%, (21117)

Source: CIA World Factbook.

More than one year into Mahathir' s government, numerous
questions remain about Malaysia's political trajectory. The
sometimes fractious coalition consists of four highly
diverse parties and includes both former members of
UMNO and longtime opposition politicians. One of the
partners is Parti Keadilan, led by Anwar Ibrahim, a former
UMNO leader and Deputy Prime Minister who broke with
then Prime Minister Mahathir in the 1990s and was twice
convicted and jailed for sodomy and corruption. Many
observers considered those charges to be motivated by
Mahathir's desire to sideline a popular critic of his
government. Mahatir has said Anwar will succeed him in
the current government (Anwar's wife, Wan Azizai Wan
Ismail, is now Mahathir's deputy prime minister), but he
has indicated no timetable for such a transition. Some
Malaysian political analysts express concerns that the pace
of political and economic reform under the new government
has been slow, and the government has rekindled some
long-standing disputes with neighboring Singapore.


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