ABSTRACT
The contrast between different parts of the region in physical characteristics and economic development is matched by a similar lack of homogeneity in the population. The Malays of Malaya and most of the inhabitants of Indonesia are of the same Malaysian stock and are Muslims by religion. They comprise the vast majority of the inhabitants of the region as a whole. Settled among them are communities of Chinesewhose numerical importance varies widelybetween the different parts of the region. In Malaya" the Chinese outnumber the Malaysians, whereas in Indonesia they represent less than three per cent of the total population. Yet even where their numbers are relatively small, their economic importance is considerable. Everywhere they exercise
functions of great significance for the commercial life of the several territories. Among other Asians settled in these regions Indians form the next largest group; they are especially numerous in Malaya. Small communities of Arabs are found in most of the chief trading centres. Europeans make only a small contribution to the size of the population, but, especially during the last century, they have occupied a commanding position in political and economic life. Only now are they relinquishing political control and surrendering, in some measure, the functions of economic leadership in Malaya. In Indonesia, where the colonial regime came to an end in 1949, they are still pre-eminent in the modern sector of the economy.
