The Constitution of Malaysia states that Islam is the religion of the federation but other religions may be practiced in peace and harmony. Discrimination based upon religion is illegal. Religious groups are allowed to maintain schools. The constitution defines a Malay as a person who habitually speaks the Malay language, professes the Muslim religion and conforms to Malay custom.
The 1997 US State Department Report on Human Rights says that because Islam is considered intrinsic to Malay identity, Islamic religious laws administered by state authorities through Muslim courts are binding on all ethnic Malays. The government supports the Muslim establishment and its official policy is to infuse Islamic values into its national administration. The government opposes variations of Islam which it considers deviant. In 1997 they proposed amending the constitution to make Sunni Islam Malaysias official Islamic sect which would make it illegal to practice any other form of Islam. As it is, the government monitors activities of the Shiite minority. In March of 1997, the government proposed creating a federal level Islamic attorney general to standardize Islamic law at the federal level. This is because different states have slightly different versions of Islamic law.
The government discourages the distribution of a popular Malay language Christian Bible as well as Malay language Christian tapes and publications. Some states have laws prohibiting the use of Malay language religious terms by non-Malays, and several states have been slow in approving building permits for non-Muslim worship. Conversion to religions other than Islam is permitted but discouraged. Some states have forbidden conversion.
2003 U.S. State Department International Religious Freedom Report on Malaysia
Malaysia makes its case on conversion WorldWide Religious News 7/27/04