As Dato Seri Dr Mahathir Mohamad moves on to his final year as Prime Minister of Malaysia, a theme he has now come to express more regularly is that of nation-building and the need for greater integration of the ethnic groups. Responding to a question from an Indian journalist during his official visit to New Delhi on 17 October 2002, Dato Seri Dr Mahathir Mohamad considered forging closer race relations in Malaysia as his most important achievement as Prime Minister.

Yet he also expressed concern at the growing racial polarization among the younger generation. On 13 August 2002, when opening the new Universiti Tunku Abdul Rahman, he noted that young Malaysians were not mixing well. At schools and in universities the different races kept to their own groups, and he expressed disappointment that the warm inter-ethnic interaction he experienced while at the university is less in evidence today. On 13 October, he noted that “the Chinese only want to go to Chinese schools, Indians prefer Tamil schools and Malays want to send their children to religious schools”.

Dr Mahathir's worry about ethnic polarization appears supported by recent media and university surveys on ethnic relations in schools and universities. A study carried out on ethnic relations in all the states by a Universiti Kebangssan Malaysia team commissioned by the National Unity Board highlighted this polarization trend. The data from the survey offer few explanations as to why there has been increased polarization. There were, interestingly, state variations in the findings. Some observers of the Malaysian situation suggested that ethnic polarization has to do with unevenness in economic development. And there are also those who questioned the use of ethnicity as a criterion in policy formulation to redress economic and educational imbalances and contend that this reinforces existing ethnic sentiments and sharpen divisions within society. Furthermore, recent religious resurgence among the different groups has added to this sense of separateness of the various communities.

Government leaders were naturally concerned with the findings of such surveys. Several initiatives have in recent months been made to check this drift towards ethnic polarization.