Malaysia vs. Brunei

Malaysia's multi-ethnic population consists of the bumiputera - Malays and other indigenous peoples - (62%), ethnic Chinese (21%), ethnic Indians (6%), and foreigners (10%).  The majority of Malaysia's ethnic Chinese and Indians trace their roots to the British colonialists' recruitment of hundreds of thousands of Chinese and Indians as mine and plantation workers between the early-19^th century and the 1930s.  Most Malays have maintained their rural lifestyle, while the entrepreneurial Chinese have achieved greater wealth and economic dominance.  In order to eradicate Malay poverty, the Malaysian Government in 1971 adopted policies that gave preference to the bumiputera in public university admissions, government jobs and contracts, and property ownership.  Affirmative action continues to benefit well-off urban bumiputera but has done little to alleviate poverty for their more numerous rural counterparts.  The policies have pushed ethnic Chinese and Indians to study at private or foreign universities (many do not return) and have created and sustained one of the world's largest civil services, which is 85-90% Malay. 

The country's age structure has changed significantly since the 1960s, as fertility and mortality rates have declined.  Malaysia's total fertility rate (TFR) has dropped from 5 children per woman in 1970, to 3 in 1998, to 2.1 in 2015 as a result of increased educational attainment and labor participation among women, later marriages, increased use of contraception, and changes in family size preference related to urbanization.  The TFR is higher among Malays, rural residents (who are mainly Malay), the poor, and the less-educated.  Despite the reduced fertility rate, Malaysia's population will continue to grow, albeit at a decreasing rate, for the next few decades because of its large number of reproductive-age women.  The youth population has been shrinking, and the working-age population (15-64 year olds) has been growing steadily.  Malaysia's labor market has successfully absorbed the increasing number of job seekers, leading to sustained economic growth.  However, the favorable age structure is changing, and around 2020, Malaysia will start to become a rapidly aging society.  As the population ages, Malaysia will need to better educate and train its labor force, raise productivity, and continue to increase the number of women workers in order to further develop its economy.

More than 1.8 million Malaysians lived abroad as of 2015, including anywhere from 350,000 to 785,000 workers, more than half of whom have an advanced level of education.  The vast majority of emigrants are ethnic Chinese, seeking better educational and job opportunities abroad because of institutionalized ethnic discrimination favoring the Malays.  The primary destination country is nearby Singapore, followed by Bangladesh and Australia.  Hundreds of thousands of Malaysians also commute across the causeway to Singapore daily for work.

Brain drain is an impediment to Malaysia's goal of becoming a high-income country.  The situation is compounded by a migrant inflow that is composed almost entirely of low-skilled laborers who work mainly in manufacturing, agriculture, and construction.  Officially, Malaysia had about 1.8 million legal foreign workers as of mid-year 2017 - largely from Indonesia, Nepal, the Philippines, and Bangladesh - but as many as 3 to 4 million are estimated to be in the country illegally.  Immigrants outnumber ethnic Indians and could supplant the ethnic Chinese as Malaysia's second largest population group around 2035.

Brunei is a small, oil-rich sultanate of less than half a million people, making it the smallest country in Southeast Asia by population.  Its total fertility rate - the average number of births per woman - has been steadily declining over the last few decades, from over 3.5 in the 1980s to below replacement level today at nearly 1.8.  The trend is due to women's increased years of education and participation in the workforce, which have resulted in later marriages and fewer children.  Yet, the population continues to grow because of the large number of women of reproductive age and a reliance on foreign labor - mainly from Malaysia, Thailand, the Philippines, Indonesia, and South Asian countries - to fill low-skilled jobs.

Brunei is officially Muslim, and Malay is the official language.  The country follows an official Malay national ideology, Malay Islamic Monarchy, which promotes Malay language and culture, Islamic values, and the monarchy.  Only seven of Brunei's native groups are recognized in the constitution and are defined as "Malay" - Brunei Malays, Belait, Kedayan, Dusun, Bisayak, Lun Bawang, and Sama-Baiau.  Together they make up about 66% percent of the population and are referred to as the Bumiputera.  The Bumiputera are entitled to official privileges, including land ownership, access to certain types of employment (Royal Brunei Armed Forces and Brunei Shell Petroleum), easier access to higher education, and better job opportunities in the civil service. 

Brunei's Chinese population descends from migrants who arrived when Brunei was a British protectorate (1888 and 1984).  They are prominent in the non-state commercial sector and account for approximately 10% of the population.  Most Bruneian Chinese are permanent residents rather than citizens despite roots going back several generations.  Many are stateless and are denied rights granted to citizens, such as land ownership, subsidized health care, and free secondary and university education.  Because of the discriminatory policies, the number of Chinese in Brunei has shrunk considerably in the last 50 years.  Native ethnic groups that are not included in the Bumiputera are not recognized in the constitution and are not officially identified as "Malay" or automatically granted citizenship.  Foreign workers constitute some quarter of the labor force.