Malaysia shares a similar history with Singapore in terms of its major events and circumstances. Initially, I thought whether it would make sense to look at the history by region rather than by country. However, when a location has its own border there is a reason for that. The geography, people, religion, and other factors make it a place with its own history and story. Malaysia and Singapore demonstrate this. Similar enough to come together as a nation, but different enough to break apart. Here we will briefly outline the story of Malaysia. Arising from European, Arab, and Japanese holding to form a national identity of its own. It is perhaps one of the most diverse countries on the planet from a religious perspective. Growing with Southeast Asia's early Indian foundations of Hinduism and Buddhism, shifting to the word of Allah with the messages brought from Arab traders, and being held by the Portuguese, Dutch, and British, bringing the teachings of Christ. Amidst all of these influences Malaysia became itself.
Early History
At the National Museum in Kuala Lumpur there is an exhibit for Sarawak's Niah Cave site that scientists have estimated the settlement of homo sapiens about 40,000 years ago. The island of Borneo where this cave lies is where most of the early history unfolded. Peninsular Malaysia, where the modern capital is and much of its later history, would not develop for 25-35 thousand years. Similar to other parts of Asia southern migrations from China and Tibet are believed to have populated the early Malaysian territory. Some of them came by land, and others by sea. They came in waves, but the geography didn't permit large settlements resulting in the establishment of smaller kingdoms.
Arrival of the Indians
Indian traders and travellers brought with them approaches to government, and their foundational stories from Hinduism and Mahayana Buddhism. Much of South East Asia to their north shared this same influence with Ayudhya in Thailand, Angkor in Cambodia, and Champa in Vietnam to name a few. The more powerful kingdoms to their north along with those to their south in Indonesia would often lay claim to Malaysia.
As trade increased the size of their settlements increased with it. Indian society permeated the surrounding culture for centuries before new interpretations of the world would arise in the form of the teachings of Islam.
Arrival of the Arabs
Being on the opposite side of Africa from Western Europe was an advantage for the Arabs in their eastern pursuits. The Portuguese wouldn't round the Cape of Good Hope in South Africa until the late 15th century, and by that time Arab ships had been firmly establishing themselves primarily in modern Malaysia and Indonesia for centuries. Kingdoms would convert, and Islamic thinking would persist through the European rule that was to come.
Of these settlements, the most important was Malacca ('Melaka'). Centrally located in the strait that bears its name, it became a major trading port for Arab merchants. It was a staple of the silk road with Chinese silks and Indonesian spices flowing through on their way to Europe. It was also where Islam could spread its roots through more of Southeast Asia. However, this did not mean Hinduism dissolved. Islamic culture merged and the two co-existed.
It is during this time that the identity of the "Malay" began to form. They shared a language and religion. It was less about geography or ethnicity and more about their perspectives on the world.
Arrival of the European
As it is in modern times, successful ventures are discussed and brought to public display. European eyes and ears watched and heard of the Arab's favourable positioning in Asian trade. The Portuguese and Dutch were the most active seekers of establishments in East Asia. It was the Portuguese who would find the route around Africa arriving at the ports of Malacca in 1509. A feat that would change the course of global history and introduce a European colonialism that would persist into modern time. Alfonso de Albuquerque would follow two years later to capture the city. The Portuguese would hold the city for over a century before the Dutch seizure in 1641.
Despite being the first to arrive and colonize South East Asia after this the Portuguese would have minimal influence in the region. The Dutch assumed ownership under the Dutch East India Company, and came to dominate the territory gaining significant holdings in nearby Indonesia. They were able to rule without significant opposition until the British became interested and sent an East India Company of their own. The British did not initially contest with Dutch Malacca and settled themselves in Penang in 1786 with Francis Light leading the way in Georgetown. They would later add Singapore in 1819 gradually becoming the stronger force in the region.
It wasn't until Dutch losses in Europe occurred that they vacated Malaysia signing an agreement with the British known as the Anglo-Dutch Treaty of 1864. The treaty essentially gave Malaysia to the British and Indonesia to the Netherlands with some other concessions in India. As Britain formalized its control the Malaysian cities of Georgetown (Penang), Malacca, Dinding, and Singapore came to be known collectively as the "Straits Settlements". The British took direct control shortly after this agreement, and with the Suez Canal opening in 1869 European access to South East Asia increased rapidly.
Meanwhile, in Sarawak a British officer named James Brooke established ties with the Sultan of Brunei and negotiated for British Borneo in exchange for British protection from local pirates. He came to be known as the "White Raja", and his family would establish their own dynasty in the area into the 1940s. He enlisted the assistance of the Royal Navy for the fulfillment of his duties, while at the same time created a monarchy for himself. Their position would fall with the arrival of Imperial Japan.
Britain retained its rule and profited on the mainland. They sought to increase commerce through trade and production. One of the ways this was achieved was by planting Brazilian rubber trees. Though not native to their land they became the world's largest exporter of rubber. The other more natural source for the region was tin mining. Both of which were colonial tax generators and still continue today. The increased production required labour, and much of this came in the form of Chinese workers who would travel south by the millions. In Penang one can still see their clan jetty's constructed so they could work and live in the region while avoiding British land taxes.
Modern History
This rule and commerce persisted into modern times and seems to have been positive for the local Malay. The British brought industrialisation, education, healthcare, common law, and economic opportunity. The British had even begun preparations for Malaysian independence before the second world war. However, this progress was swiftly halted by the Japanese occupation.
Arrival of the Japanese
Consistent with the other Asian countries previously covered, Malaysia's mainland and Borneo fell under Japanese rule in the early 1940s. Japan needed their rich resources and aimed to weaken Britain in the process. They started in the north and worked their way south to Singapore. Once in power they sought rapid change for the region. They tried to change the official language used, which included street signs, and even switched the time zone in alignment with Japan's. More severe was their crack down on the Chinese. As was done in Singapore many Chinese people were killed by the Kenpeitai (Japanese military police) for revolts and perceived support for both Nationalist and Communist China that opposed Japan.
News articles would be published in Singapore and Malaysia against the British and as direct threats against those that did not side with the Japanese. Articles with titles like "Sword that kills one and saves many" attempted to justify what Japan was doing "for Asia" and what they called the "Great East Asia Co-Prosperity Sphere". Publicly, the Malaya in larger centers would have to be cautious of their words and likely hesitated to voice their opinions. The risk would be too great to stand against the Kenpeitai.
Arrival of the Malaysian State
Liberation for most of Asia would come as a result of allied victories and the U.S atomic bombs dropped on Japan forced their swift surrender. Initially, Malaysia would be returned to British hands who already had been acting on plans for independence. The Federation of Malaya would be formed to formalize this national identity. In 1957 they achieved their independence from the British with Tunku Abdul Rahman as their first leader. By 1963 the Federation of Malaysia came to include Borneo and Singapore*, but not Brunei.
There were immediate hostilities in their infancy, which included disagreements with Singapore leadership and military conflicts with Indonesia. Internally there were riots between those with differing view points (i.e. between the Chinese and Malaya). However, despite these hostilities the country has now grown in strength and influence. They are resource rich, geographically favourable, and boast a culture that is enticing for tourism. There is certainly room for improvement economically and politically, but as former colonial governments go Malaysia is one of the best.
*See the Singapore blog here for the story of how Singapore once joined and left the Federation of Malaya.
Sources:
General History of Malaysia
https://www.britannica.com/place/Malaysia/The-advent-of-Islam
European colonialism in South East Asia
http://www.seasite.niu.edu/crossroads/wilson/colonialism.htm
Anglo-Dutch Treaty of 1864
http://eresources.nlb.gov.sg/history/events/5005d886-9c27-421e-a22d-44fb5965350c
James Brooke in Sarawak
https://www.thegazette.co.uk/all-notices/content/100727
Japan changes Malaysia's time zone
http://eresources.nlb.gov.sg/newspapers/Digitised/Article/syonantimes19420303-1.2.4
Japanese article in the Syonan Times - "Sword that kills one and saves many"
http://eresources.nlb.gov.sg/newspapers/Digitised/Article/syonantimes19420228-1.2.21
General History of Malaysia
National Museum of Malaysia (Highly recommend)