The article focuses on issues concerning the role of ideology in the manipulation and management of racial and ethnic groups in colonial Malaya, that resulted in tensions and potential conflict situations, as of January 1, 1983. In colonial Malaya, political domination of the indigenous population was achieved through indirect rule by making the traditional Malaya ruling class an instrument of British colonial interests. Political domination and social control, over the immigrant communities was exercised initially through Capitan China and Kangany systems. Systems of domination and control operated by the colonial political structure were closely paralleled with economic structure of the private sector as well. This parallel was consistent with colonial theory, in that capitalist colonial aimed at the maximization of profits and political domination and social control was a necessary condition for effective economic exploitation. [Download]