Malaysia is a multi-ethnic society, multicultural and multilingual. The Malays are the largest community, play a dominant role in politics. Although identified as such, amid the wealthy Chinese community, many Malays are still living in poverty. The economic gap accounted for the riots on 13 May, 1969. After the riots, the Malaysian government has launched the new economic policy (NEP). This policy has very good starting point and purpose. However, the implementation of NEP has given rise to profound implications in terms of ethnicity and social impacts on the internal political situation in Malaysia. Doing research on this policy and its effects will help us better understand the socio-political situation of contemporary Malaysia and prospects for future development of the country. This also helps draw valuable lessons for Vietnam regarding ethnic issues and the development and modernization of the country.