Malaysian firms fear rising ethnic chauvinism

Kuala Lumpur

MALAYSIA'S racial diversity has long been regarded by investors as one of its greatest - if not foremost - strengths, but the recent escalation in racial rhetoric is giving cause for apprehension.

Aviation tycoon Tony Fernandes, for example, rates rising racial intolerance as one of his top concerns. He observed at an economic-outlook conference on Monday - five days after hordes of Malays took to the streets on Sept 16, Malaysia Day, to assert their dominance over other minorities, particularly the Chinese - that race relations in the country have taken a turn for the worse in the last 15 years.

If tensions continue to be fanned, it would not take much to wreck hard-built businesses, he said, drawing a nod in agreement by trade minist…