On This Day: Federation of Malaysia formed

SEPTEMBER 16, 1963:

The Asian economic powerhouse of Malaysia was born on this day 50 years ago after the former British colonies of Malaya, North Borneo and Singapore joined together.

The new federation essentially doubled the territory of Malaya – the southern half of the Malay Peninsula – that gained independence from Britain in 1957.

A British Pathé newsreel shows 3,000 schoolchildren performing at a stadium in capital Kuala Lumpur to celebrate Independence Day.

The neighbouring isle of Singapore and the northern half of the island of Borneo – 640 miles east – joined after both being granted sovereignty on August 31, 1963.

The letters “s” and “i” were added to make Malaya “Malaysia” and reflect the addition of the new states to the multi-cultural country.

However, dissatisfied Singapore, which had a majority of Chinese residents, was expelled from the federation just two years later and formed its own republic.

But, despite the exit of the wealthy island, Malaysia – comprised of 60% Muslim ethnic Malays, 26% Chinese with Indians and others making up the rest – prospered.

In the five decades since the federation was born, the economy has grown by an average 6.5% a year.

It has long been one of the biggest producers of tin, rubber, timber and palm oil – and, crucially, is also a net exporter of oil.

But, more recently, the country of 28.3million people has become a major manufacturer of computer hardware and has a growing finance and tourism sector.

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And, despite being only the world’s 35th richest state, its average income of £11,000 is triple that of China’s, making its citizens among the richest in Asia.

However, Malaysia’s ethnic Chinese remain the wealthiest community – just like in neighbouring Singapore, Indonesia, Thailand, Vietnam and Philippines.

But the Malays are the dominant group in politics and have long benefited from positive discrimination laws and the one official language being their own.

The country is a constitutional monarchy with the head of state elected every five years by the hereditary rulers of nine Malay states and governors of four other states.

Although ostensibly democratic – with governance based on Britain’s Westminster system – the Basiran National party has held power since independence.

In this year’s general election, the opposition won 53% of the popular vote but, due to the first-past-the-post electoral system, BN gained the majority of parliamentary seats.

Yet, in spite of the relative inequality and some allegations of human rights abuse, the different communities live in relative harmony.

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However, there is little interaction between the different racial groups and – although Islam is the state religion – Sharia law does not apply to the non-Muslim minority.

The country remains part of the Commonwealth and has maintained ties with the Britain –added to by the 63,000 Malaysians living in the UK.