MALAYSIA : HISTORY

Pre-20th-Century History
Aboriginal Malays (Orang Asli) began moving down the Malay peninsula from southwestern China about 10,000 years ago. The peninsula came under the rule of the Cambodian-based Funan, the Sumatran-based Srivijaya and the Java-based Majapahit empires, before the Chinese arrived in Melaka in 1405. Islam arrived in Melaka at about the same time and spread rapidly. Melaka's wealth soon attracted European powers, and the Portuguese took control in 1511, followed by the Dutch in 1641. The British established a thriving port in Penang in 1786 and took over Melaka in 1795.
The British traded for spices and colonised the interior of the peninsula when tin was discovered. East Malaysia came into British hands via the adventurer Sir James Brooke (who was made Rajah of Sarawak in 1841 after suppressing a revolt against the Sultan of Brunei) and the North Borneo Company (which administered Sabah from 1882). Gradually, the Federated Malay States were created in piecemeal fashion over the course of the 19th century.
Modern History
The final pieces of the Malaysian mosaic fell into place when Britain took formal control of both Sabah and Sarawak after WWII. The indigenous labour supply was insufficient for the needs of the developing rubber and tin industries, so the British brought large numbers of Indians into the country, altering the peninsula's racial mix.
The Japanese overran Malaya in WWII. Communist guerrillas who fought the Japanese throughout the occupation began an armed struggle against British rule in 1948 and Malaya achieved independence in 1957. Sabah, Sarawak and Singapore combined with Malaya to establish Malaysia in 1963, but two years later Singapore withdrew from the confederation. The formation of Malaysia was opposed by both the Philippines and Indonesia, as each had territorial claims on East Malaysia.
Tension rose in 1963 during the 'Confrontation' with Indonesia. Indonesian troops crossed Malaysia's borders but were repelled by Malaysian and Commonwealth forces. In 1969, violent riots broke out between Malays and Chinese, though the country's racial groups have since lived in relative peace together. The United Malays National Organisation (UMNO) has been in power since 1974. Prime Minister Dr Mahathir Mohamad, who is keen to exert his influence on the world stage as a pan-Asian leader, presided over a booming economy until 1997, when tumbling Asian currencies dragged the ringgit down with them.
In September 1998 the country hosted the Commonwealth Games, but the public relations aspect of the competition came apart when students and citizens protested against the unfair sacking and later imprisonment of deputy Prime Minister, Anwar Ibrahim. Continuing street protests calling for the resignation of Dr Mahatir Mohamad have unsettled Malaysia's reputation as one of the most politically stable of southeast Asian countries. By the time the 21st century rolled around, social upheavals had faded to a distant rumble and the Malaysian economy had clawed its way back into the black. Dr Mahathir Mohamad remained a controversial figure until the end. Just before his resignation in October 2003, after 20 years at the helm, the PM addressed a meeting of Islamic countries hosted by Malaysia, and exhorted them to collectivise against an alleged world Jewish conspiracy. His replacement, Abdullah Ahmad Badawi, won a March 2004 election in a landslide. In August 2004 the country's highest court upheld Anwar Ibrahim's appeal against his sentence and he was released from jail.
Recent History
Sheltered by the island of Sumatra, Malaysia was hit by the December 2004 tsunami's secondary 'shadow' wave, which travelled at 160km/h (compared to the primary wave speed of 800km/h). The impact resulted in 68 deaths and US$25 million in property damage. Areas affected included the island of Penang and Langkawi, and parts of the mainland in the states of Kedah, Perlis and Perak. In the resort areas of Penang and Langkawi, clean-up efforts were quick and efficient and all beachfront hotels were at full operating capacity within two weeks of the event.
In March 2006 Abdullah unveiled a new five-year plan for Malaysia, the ninth such economic and social agenda in the country's independent history, and thus known by the shorthand '9MP'. Unlike Mahathir's previous plans - sometimes referred to as Wawasan 2020 (Vision 2020) which focussed on major construction and industry projects- the 9MP seeks to tackle Malaysia's crisis in education. Since his release from prison Anwar has been steadily rebuilding his political platform. However he is barred from running for political office until 2008 and for this reason - as well as to capitalise on the inevitable feel-good factor following the 50th anniversary celebrations of Malaysia's Independence (Merdeka) in August 2007 - it's widely suspected that Abdullah will call an election towards the end of 2007, even though he doesn't actually have to until 2009.