Despite the fact that Malaysian politics is dominated by the Malay ethnic group, Chinese and Indian communities in Malaysia have historically been wealthier and more economically successful than the Malay population. This has causes inter-communal tension and even lead to race riots in 1969.

After these riots the president of Malaysia Dr. Mahathir Mohamad, said “After the race riots, the government quickly recognized that closing the gap between the Malays and other ethnic groups would be essential for the long-term stability and prosperity of the country”. In order to address this problem, the Malaysian government started the New Economic Policy (NEP) that was designed to increase the economic situation of Malays. Government loan programs were established to offer credit to Malays and educational opportunities for Malays were also greatly increased.

This kind of affirmative action is unusual since it is usually the political minority who are given more opportunities. However, many people agree that the NEP has been successful in limiting inter-communal conflict in Malaysia and contributed to a peaceful and multicultural society.