( CNN ) -- Bordered by Thailand , Indonesia and Brunei , and with a heritage of diverse influences including a long period of British colonial rule and an economically powerful Chinese community , Malaysia is one of the most multicultural nations in southeast Asia . Comprised of two regions separated by 640 miles of the South China Sea , with Peninsular Malaysia to the west and Malaysian Borneo to the east , the country is a federation of 13 states that is home to an estimated population of 25.7 million people . From the 18th until to the 20th century , the region formed part of what was loosely known as British Malay -- a divided collection of colonized states . By 1948 , these British-ruled territories were bought together under a single administration called the Federation of Malaya , which gained independence in 1957 . Malaysia was formed in 1963 when the former British colonies of Singapore and the states of Sabah and Sarawak on the northern coast of neighboring Borneo also joined . The country 's infancy was dogged by Communist insurgency , Indonesian confrontation with Malaysia over claims to the island of Borneo , Philippine claims to Sabah , and Singapore 's secession from the Federation in 1965 . With a strictly neutral attitude towards foreign affairs , Malaysia has since enjoyed a sustained period of relatively untroubled international relations . However , the multi-religious , multi-ethnic nation has still had to contend with its own internal tensions . Ethnic Malays make up 50 percent of the population , Chinese a further 23 percent , with Indians and indigenous peoples forming the remainder , according to the CIA World Factbook . In 1969 anti-Chinese riots took place amidst growing frustration over the economic success of ethnic Chinese in Malaysia . This led to a controversial policy of positive discrimination , which saw minimum quotas introduced for Malays in business , education and the civil service . During the 22-year term of Prime Minister Mathathir bin Mohamad -- between 1981 and 2003 -- the country diversified from dependence on exports of raw materials such as palm oil , tin , petroleum and gas , to expansion in manufacturing , services , and tourism . Today the bustling capital of Kuala Lumpur , a former tin-mining town , is dominated by gleaming skyscrapers . Among them are the tallest twin buildings in the world -- the Petronas Twin Towers -- a potent symbol of Malaysia 's development . Although the country 's export trade was hit hard by the loss of demand accompanying the global downturn , Malaysia remains one of Asia 's `` most vibrant economies , '' according to the CIA World Factbook . Having won every election since independence , The Barisan National coalition dominates the political landscape -- which operates under a constitutional monarchy based on the British parliamentary model . After winning the 2004 general election by a landslide , however , the coalition was returned to power in 2008 with a significantly reduced majority . For the first time since 1957 , the ruling alliance lost its two-thirds majority of the seats in Parliament ( required to amend the Federal Constitution ) , and five of 13 federal states to the three opposition parties , which together form the Paktan Rakyat coalition . Despite this apparent political sea-change , a series of defections from other parties and by-election results since 2008 have left the Barisan National coalition just five seats short of regaining their two-thirds majority . Malaysia 's large Muslim population live alongside people of other religions including Buddhists , Christians and Hindus . The rich mix of ethnicity , religions and historical influences is most vividly displayed in the nation 's lively and animated culture . The self-styled `` Land of the Festivals '' , Malaysia boasts hundreds of colorful celebrations throughout the year , ranging from religious holidays like `` Deepavli '' to secular parades such as the `` Flora Festival '' . Malaysia is home to a UNESCO cultural world heritage site covering two towns . Melaka and George Town , in Penang state , are `` exceptional examples of multi-cultural trading towns in Southeast Asia , '' says the prestigious UN body . `` [ They are ] forged from the mercantile exchanges of Malay , Chinese , and Indian cultures and three successive European colonial powers for almost 500 years , each with its imprints on the architecture and urban form , technology and monumental art . '' Displaying the same fertile blend of influences , Malaysia has `` one of the best assortments of delicious cuisines in the world , '' according to the Lonely Planet travel guide . A smorgasbord of Asian flavors , with dishes that include beef rendang ( richly spiced dry beef curry ) and nasi goreng ( spicy , stir-fried rice ) , Malaysia 's trade commission hopes that the national cuisine will eventually become one of the world 's most sought after . Malaysia 's natural habitat is even more diverse than its culture . According to the World Conservation Moderating Center , it is one of the 17 `` megadiverse '' countries which together harbor more than 70 percent of the earth 's species . Over 58 percent of the land is occupied by tropical rainforests , that include long stretches of peat swamps and mangroves . Tourism is booming in Malaysia and , as the Word Travel Guide sums up , it 's not difficult to understand why : . `` Tropical island resorts and endless white , sandy beaches offer a taste of paradise , while beneath warm coral seas , world-class dive sites await exploration . Orang-utans , the oldest rainforest in the world , city skyscrapers and majestic mosques and temples , plus a gorgeous coastline are enough to tempt even the most jaded visitor . ''
With range of cultural influences , Malaysia is among most diverse countries in Asia . The Malaysian people are very friendly and open to new ideas.