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1. General Situation Malaysia lies in the tropics north of the Equator. It embraces two areas separated by approximately 600 km. (375 mi.) across the South China Sea: the Malay Peninsula and parts of the island of Borneo (Sarawak and Sabah) to the north outside the sultanate of Brunei. The Malaysian peninsula is bordered on the north by Thailand and on the south by Singapore. The country’s capital is Kuala Lumpur. The Malaysian peninsula has 43 percent of the total area but 83 percent of the total population of the country. At first Malaysia, which gained soverei…