Malaysia is a Southeast Asian nation composed of two noncontiguous regions - West and East Malaysia - separated by the South China Sea and covering an area of approximately 204,000 square miles (330,000 sq km). The capital is Kuala Lumpur. West Malaysia occupies the southern half of the Malay Peninsula, bordered on the north by Thailand, on the south by Singapore, on the west by the Strait of Malacca, and on the east by the South China Sea. East Malaysia occupies the northwestern part of the island of Borneo; it consists of the territories of Sarawak and Sabah. It is bordered on the north and west by the South China Sea, on the east by the Celebes Sea, and on the south by the Indonesian province of Borneo. Brunei is enclosed within Sarawak.

The Strait of Malacca is one of the world's major sea lanes and this is reflected in the ethnically diverse culture that can be found in peninsula Malaysia which is based on a fusion of Malay, Chinese, Indian and indigenous cultures and customs. Ethnic Malays comprise about three-fifths of Malaysia's inhabitants; they are usually Muslim and speak an Austronesian language called Bahasa Malaysia, which is the national language. Chinese who migrated from southeastern China make up one-third of the population. Indians, Pakistanis and Tamils (from Sri Lanka) account for most of the remainder. There is also a sizeable Sikh and Eurasian community. The Chinese are mostly Buddhists, Taoists, or Confucians and they speak Hokkien, Hakka and Cantonese. Most of the Indians and Sri Lankans are Hindus, and most of the Pakistanis are Muslim. Tamils speak either Dravidian or Indo-European languages.

The population of East Malaysia is even more diverse than that of West Malaysia. The main groups are the Chinese (about one-third of the population) and there are some 25 ethnic groups, as well as smaller tribal subgroups that speak Austronesian languages. The Iban, who live in Sarawak, East Malaysia, were formerly headhunters and continue to live in communal longhouses. The Land Dayak inhabit the hill country of Sarawak, and the Bajan are agriculturists who live on the northeastern coast. The Kadazan are the largest indigenous group in Sabah. In East Malaysia, the Orang Asli peoples, including the Jakun, Semang, and Senoi groups, observe traditional religions, and some are Muslims.

Malaysia is a federation of states governed by a constitutional monarchy. The nominal head of the federal government is the paramount ruler, who is elected to five-year terms by the Conference of Rulers, a body composed of the states' nine hereditary rulers. According to the country's constitution of 1957, however, real political power rests with the Parliament. The leader of the party with the most seats in Parliament serves as prime minister, currently Dr. Mahathir Mohammad.

Malaysia has a predominantly market economy that is heavily dependent on the production and export of such raw materials as petroleum, rubber, cocoa beans, and palm oil. Several decades of sustained economic growth has transformed Malaysia into one of the region's most wealthy and stable countries.