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Buddhism is the second largest religion in Malaysia, after Islam, with 19.2% of Malaysia's population is Buddhist. Buddhism in Malaysia is mainly practised by the ethnic Chinese Malaysians.

Buddhism was introduced to the Malays and also to the people of the Malay Archipelago as early as 200 BCE. Chinese written sources indicated that some 30 small Indianised states rose and fell in the Malay Peninsula. Malay-Buddhism began when Indian traders and priests traveling the maritime routes and brought with them Indian concepts of religion, government, and the arts. For many centuries the peoples of the region, especially the royal courts, synthesised Indian and indigenous ideas including Hinduism and Mahayana Buddhism and that shaped their political and cultural patterns. However, the Malay Kedah Kingdom denounced Indian religion after the king of Chola from Tamil attack them in the early 11th century, the king of Kedah, Phra Ong Mahawangsa was the first Malay ruler to denounce the traditional Indian religion, he converted to Islam, and in the 1400s, during the golden age of Malacca Sultanate, majority of the Malays converted to Islam. The last of the pre-Islamic-Malay king moved to what is now Bali. Today, the Malays living in Malaysia are compulsory to be a Muslim, the number of Malays denoucing Islam is almost nil.

According the Malaysian constitution, the majority ethnic group, the Malays, are legally defined as Muslim. They constitute 60% of the population, with the remainder consisting mostly of Chinese, who are generally Buddhists or Christians, and to the lesser extent Indians, who are generally Hindus. There are also smaller numbers of other indigenous and immigrants; among the latter are Malaysians of Sinhalese, Thai, and Eurasian origin. Many of these immigrant peoples also profess the Christian faith, but there are also Buddhists among the Sinhalese and Thai. Nearly all of the Buddhists in Malaysia live in urban areas, since they are mostly engaged in business or employed in various professions.

The general climate of religious freedom in Malaysia indicates that Buddhism may have the opportunity to expand in the future. However, Buddhism has often been described as a gentle religion which does not carry out an active program to seek converts.

Recently, a number of Malaysian Buddhist leaders have responded to the decline in religious participation by the children of Buddhist families, have attempted to reformulate their message to address modern life more directly. Groups involved in these education efforts include such as the Buddhist Missionary Society. Missionary Society leaders have argued that, while many educated youths seek an intellectual approach to Buddhism, an equally large number of people prefer to approach the religion through the tradition of ceremony and symbolism. In response to these needs, religious practices are carried out, but in a way that is simple and dignified, removing what can be seen as superstition. Efforts are made to explain why sutras are chanted, lamps lit, flowers offered, and so on.

As a religion without a supreme head to direct its development, Buddhism is practised in various forms, which, although rarely in open conflict, can sometimes lead to confusion among Buddhists. In Malaysia, some ecumenical moves have been made to coordinate the activities of different types of Buddhists. One example is the formation of the Joint Wesak Celebrations Committee of the temples in Kuala Lumpur and Selangor, which coordinates the celebration of Wesak, a holiday commemorating the birth of the Buddha. An initiative has also begun to form a Malaysian Buddhist Council, representing the various sects of Buddhism in the country to extend the work of the development of Buddhism, especially in giving contemporary relevance to the practise of the religion, as well as to promote solidarity among Buddhists in general.

See also