The peninsula of Malaya, as it was known before the formation of Malaysia in 1963, has a long history of external social and cultural influence. Its strategic location on the sea route between India and China meant that it came under the direct influence of diverse social and cultural forces from India, China, Thailand, Cham (Vietnam), Indonesia, the Middle-East, and the West from the 16th century.
Estimates place the earliest arrival of Indians in the Peninsula of Malaya region as approximately 1,700 years ago. The Indian travelers are known to have referred to this area as Shuvarnabumi or land of gold. Indisputable evidence of early Indian presence can be found in the ancient Hindu relics and excavations at Takuapa on the Kra Isthmus, Candi Bukit Batu Pahat and Bujang valley in Kedah.
According to scholar S.Arasaratnam, “with the decline of Hindu shipping and mercantile activity and the expansion of Islamic political and economic power in India, the number of Hindu traders coming to Malaya declined, giving place to the more powerful and better equipped Muslim merchants of Bengal,Golconda, Coramandel and Gujerat. These traders intermarried with the local Malay population and absorbed much of the Malay Muslim cultural and religious practices.
In contemporary Malaysia, the descendants of these traders identify more strongly with the Malay community rather than the Indian community. The Indian immigrants who came later, in the19th Century, as a result of British intervention in the Malay states were however largely Hindu.