Evidence of modern human habitation in Malaysia dates back 40,000 years.[44] In the Malay Peninsula, the first inhabitants are thought to be Negritos.[45][46] Areas of Malaysia participated in the Maritime Jade Road between 2000 BC to 1000 AD.[47][48][49][50] Traders and settlers from India and China arrived as early as the first century AD, establishing trading ports and coastal towns in the second and third centuries. Their presence resulted in strong Indian and Chinese influences on the local cultures, and the people of the Malay Peninsula adopted the religions of Hinduism and Buddhism. Sanskrit inscriptions appear as early as the fourth or fifth century.[51] The Kingdom of Langkasuka arose around the second century in the northern area of the Malay Peninsula, lasting until about the 15th century.[39] Between the 7th and 13th centuries, much of the southern Malay Peninsula was part of the maritime Srivijayan empire. By the 13th and the 14th century, the Majapahit empire had successfully wrested control over most of the peninsula and the Malay Archipelago from Srivijaya.[52] In the early 15th century, Parameswara, a runaway king of the former Kingdom of Singapura linked to the old Srivijayan court, founded the Malacca Sultanate.[53] The spread of Islam increased following Parameswara's conversion to that religion. Malacca was an important commercial centre during this time, attracting trade from around the region.[54] The Dutch fleet battling with the Portuguese armada as part of the Dutch–Portuguese War in 1606 to gain control of Malacca In 1511, Malacca was conquered by Portugal,[54] after which it was taken by the Dutch in 1641. In 1786, the British Empire established a presence in Malaya, when the Sultan of Kedah leased Penang Island to the British East India Company. The British obtained the town of Singapore in 1819,[55] and in 1824 took control of Malacca following the Anglo-Dutch Treaty. By 1826, the British directly controlled Penang, Malacca, Singapore, and the island of Labuan, which they established as the crown colony of the Straits Settlements. By the 20th century, the states of Pahang, Selangor, Perak, and Negeri Sembilan, known together as the Federated Malay States, had British residents appointed to advise the Malay rulers, to whom the rulers were bound to defer by treaty.[56] The remaining five states on the peninsula, known as the Unfederated Malay States, while not directly under British rule, also accepted British advisers around the turn of the 20th century. Development on the peninsula and Borneo were generally separate until the 19th century. Under British rule the immigration of Chinese and Indians to serve as labourers was encouraged.[57] The area that is now Sabah came under British control as North Borneo when both the Sultan of Brunei and the Sultan of Sulu transferred their respective territorial rights of ownership, between 1877 and 1878.[58] In 1842, Sarawak was ceded by the Sultan of Brunei to James Brooke, whose successors ruled as the White Rajahs over an independent kingdom until 1946, when it became a crown colony.[59] In the Second World War, the Japanese Army invaded and occupied Malaya, North Borneo, Sarawak, and Singapore for over three years.[60] During this time, ethnic tensions were raised and nationalism grew.[61] Popular support for independence increased after Malaya was reconquered by Allied forces.[62] Post-war British plans to unite the administration of Malaya under a single crown colony called the Malayan Union met with strong opposition from the Malays, who opposed the weakening of the Malay rulers and the granting of citizenship to the ethnic Chinese. The Malayan Union, established in 1946, and consisting of all the British possessions in the Malay Peninsula except for Singapore, was quickly dissolved and replaced on 1 February 1948 by the Federation of Malaya, which restored the autonomy of the rulers of the Malay states under British protection.[63] Malayan police officers question an ethnic Chinese civilian during the Malayan Emergency. During this time, the mostly ethnically Chinese rebels under the leadership of the Malayan Communist Party launched guerrilla operations designed to force the British out of Malaya. The Malayan Emergency (1948–1960) involved a long anti-insurgency campaign by Commonwealth troops in Malaya.[64] On 31 August 1957, Malaya became an independent member of the Commonwealth of Nations.[65] Subsequently, a comprehensive plan was devised to unite Malaya with the crown colonies of North Borneo (known as Sabah upon joining), Sarawak, and Singapore. The envisioned federation was originally intended to take place on 31 August 1963, to coincide with the commemoration of Malayan independence. However, due to the necessity of conducting a survey on the level of support for the federation in Sabah and Sarawak by the United Nations, as requested by opponents of the federation such as Indonesia's Sukarno and the Sarawak United Peoples' Party, the date of the federation was postponed until 16 September 1963.[66][67] The federation brought heightened tensions including a conflict with Indonesia as well as continual conflicts against the Communists in Borneo and the Malay Peninsula, which escalated to the Sarawak Communist Insurgency and Second Malayan Emergency together with several other issues such as the cross-border attacks into Sabah by Moro pirates from the southern islands of the Philippines, Singapore being expelled from the Federation in 1965,[68][69][70] and racial strife. This strife culminated in the 13 May race riots in 1969.[71] After the riots, the controversial New Economic Policy was launched by Prime Minister Tun Abdul Razak, trying to increase the share of the economy held by the bumiputera.[72] Under Prime Minister Mahathir Mohamad there was a period of rapid economic growth and urbanization beginning in the 1980s. The economy shifted from being agriculturally based to one based on manufacturing and industry. Numerous mega-projects were completed, such as the Petronas Towers, the North–South Expressway, the Multimedia Super Corridor, and the new federal administrative capital of Putrajaya.[41][73] In the late 1990s, the Asian financial crisis impacted the country, nearly causing their currency, stock, and property markets to crash; however, they later recovered.[74] The 1MDB scandal was a major global corruption scandal that implicated then-Prime Minister Najib Razak in 2015.[75] The scandal contributed to the first change in the ruling political party since independence in the 2018 general election.[76] In the 2020s, the country was gripped by a political crisis that coincided with health and economic crises caused by the COVID-19 pandemic.[77]