his paper analyses Malaysian experiences in managing ethnic “imbalances”—between the “indigenous community” and “immigrant communities”—that created formidable barriers to non-divisive interethnic relations. Part I gives an overview of the formation of a plural society and an ethnic division of labour. Part II focuses on the public sector’s use of the New Economic Policy (NEP) to overturn the ethnic division of labour and its impact on public sector governance. Part III examines how a matrix of ethnic representation, power sharing and domination imposed some measure of stability upon the political system. Author: Khoo, Boo Teik.