KUALA LUMPUR – Clashes over the use of Chinese on Kuala Lumpur shop signage are the latest racial flashpoint in Malaysia, with a Cabinet minister warning of economic harm if Prime Minister Anwar Ibrahim’s government continues to ban prominent Chinese characters on retail signboards.

Tourism, Arts and Culture Minister Tiong King Sing lashed out on Nov 24 at a decision by Kuala Lumpur City Hall (DBKL) to enforce a 1982 by-law dictating that any advertisement must have Malay displayed with larger characters than other languages.

“This overboard behaviour not only causes tourists to question the openness and inclusivity of Malaysia, but some international visitors have asked me point-blank whether Malaysia is racist or religiously extreme,” he said, lamenting in a statement that such issues of race and religion can stunt economic growth.

Tourism is projected to bring in revenue of over RM100 billion (S$30.2 billion) in 2024 and rising by nearly 50 per cent in 2026, which has been earmarked as Visit Malaysia Year.

Datuk Seri Tiong also pointed out that Malaysia is chairing Asean in 2025, giving it a “golden opportunity to display its diversity and inclusivity on the global stage”.

But he cautioned that continuous race and religious controversies will erode international confidence and cooperation.

This comes at a time when Malaysia has been burnishing its credentials as a safe haven for investments amid growing fears of global trade tensions, especially after former US president Donald Trump won a second term, which will begin in 2025.

Some shops in Kuala Lumpur's Bukit Bintang shopping district have altered their signage to comply with regulations to have prominent Malay words, while others persist with large Chinese characters.