federation was 31 August 1963, however, the date was delayed until 16 September 1963 due to opposition from Indonesia's Sukarno and the Sarawak United Peoples' Party.
Federation brought heightened tensions including a conflict with Indonesia, Singapore's eventual exit in 1965, and racial strife. This strife culminated in the 13 May race riots in 1969. 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 bumiputra. Under Prime Minister Mahathir Mohamad there was a period of rapid economic growth and urbanisation 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. However, in the late 1990s the Asian financial crisis almost caused the collapse of the currency and the stock and property markets