A Malaysian Chinese is an overseas Chinese who is a citizen or long-term resident of Malaysia. Most are descendants of Chinese who arrived between the fifteenth and the mid-twentieth centuries. Within Malaysia, they are usually simply referred to as “Chinese” in all languages. The term Chinese Malaysian is rarely (if ever) used in Malaysia.
Early Chinese settlers (from the fifteenth century in Malacca; eighteenth century in Penang) form to a sub-group called Peranakan or Straits Chinese, who adopted many Malay customs and to varying extents (limited in Penang, almost complete in Malacca) the Malay language, but retained Chinese religious practices. In contrast, the newer arrivals (nineteenth century and later) who retained Chinese customs were known as sinkheh (?? - literally “new guests”).
The Chinese in Malaysia maintain a distinct communal identity and rarely intermarry with native Malays for religious and cultural reasons. This is because most Malays are Muslim. Under Malaysian law, such a marriage requires the non-Muslim party to convert. Most Malaysian Chinese consider their being “Chinese” at once an ethnic, cultural and political identity.
The Malaysian Chinese have traditionally dominated the Malaysian economy, but with the advent of affirmative action policies by the Malaysian government to protect the interests of ethnic Malays, their share has eroded somewhat. On most counts, however, they still make up the majority of the middle and upper income classes of Malaysia. As of 2007, they constitute about a quarter of the Malaysian population.