Malaysia is a big tourist destination, yes.  "Malaysia, Truly Thief Asia" has  been constantly advertised on CNN International for years, Penang and  Langkawi are resort hotspots and Kuching and Kota Kinabalu are big  culture/adventure travel destinations.  But, compared to its neighbors,  Indonesia with Borobudur and Bali, Cambodia with Angkor Wat, the  international hub city of Singapore and of course Thailand, Malaysia  pales as a tourist destination.  This sort of seems like a fact of life,  but why?  What about Malaysia makes it relatively unappealing, so  lame-seeming?  It can certainly be good value, with many services at  first world levels for discount prices.  The food is excellent.  Melaka  and Penang have intriguing history and there is natural beauty galore on  Borneo.  Is Malaysia's poor reputation unmerited?  Admittedly we've  spent little time in Malaysia, just a couple weeks in Borneo and about a  week in Peninsular Malaysia, but our answer would be no.  Malaysia just  isn't in the same league.
The first problem with Malaysia is,  apparently, violence.  I do not know the statistics on this, but  Malaysia is the only country in Asia (other than the Philippines) where I  have heard repeated safety concerns from other travelers.  Yes, you may  be conned in Bangkok and there are certainly some government-related  issues in Burma and China, but East/Southeast Asia as a whole (other  than the Philippines) is extraordinarily safe, one of the region's many  strengths for travelers.  Even Jakarta, which I had at one point  ignorantly feared, feels astonishingly safe on the ground.  In sharp  contrast, in the short time that we were in Kuala Lumpur (KL), we heard  two separate stories about muggings, and I was physically attacked in  the main bus station (more on this below).
The second problem  with Malaysia is racism and racial tension.  While Malaysia has a  history dating from the 15th century or so as a Malay-ethnic sultantate,  Malaysia as a modern country is largely the product of colonial powers  (first Portuguese and Dutch and then British) and labor brought in by  those powers (the Chinese for manual labor and commerce, the Indians for  administration and the service sector).  Well into the twentieth  century, the principal cities of Malaysia were largely built, owned and  populated by Chinese, who made up nearly half of the country's  population.  The smaller Indian population is augmented by the presence  of overseas workers from the subcontinent.  Yes, Malaysia is a  multicultural society, but Malaysia's vision of itself as a country  where all three of the major ethnic groups live together in complete  harmony sometimes seems to be more dream than reality.
The  biggest problem, in my view, is discriminatory Malaysian laws.  I do not  deny that it is unfortunate for your "homeland" to be taken over by an  outside ethnic group that has been brought in by a colonial power (the  Palestinians certainly can identify with that)--the Chinese minority is  still disproportionately economically powerful--but the policies put in  by the majority Malay (now some 60% of the population) amount to little  other than discrimination against and theft from the Chinese and  Indians.  Public companies are required to be at least 30% owned by  Bumiputras (i.e., "sons of the earth," or Malays and certain other  "native" groups), new housing construction is required to be sold to  Bumiputras at a discount, Bumiputras are allowed affirmative access in  higher education and many government contracts and permits are given to  Bumiputras on a preferential basis.  This racist system is enshrined in  the Malaysian constitution, and although the provision was supposed to  be temporary, and there is occasionally talk of trimming back on its  application, it remains in place.
The laws are no doubt both an  effect of and a cause of racial sentiment that seems prevalent  throughout the country.  Malaysia is certainly not the only country with  racial tension (Indonesia in particular is infamous for racial riots  that have occurred in its history), but, currently, Malaysia is, outside  of the U.S., the country in which I've felt the greatest amount of  animosity among different ethnic groups.  Our conflict at the bus  station was with Malay-ethnic Malaysians, and Chinese-ethnic Malaysians  who were present immediately came to our defense, telling us that as  Americans in a position of relative influence we had to report what had  happened to us.  One middle-aged Chinese woman said that "they" (meaning  Malays) commit all kinds of crimes, especially against defenseless  South Asians, and get away with it.  She was also mistrustful of the  police, and told me that I should make sure to keep copies of all  reports that we make, to ensure that they are not subsequently doctored.   An Indian police officer who handled our matter said that such  violence was a "national epidemic," with the subtle implication that it  was a Malay-ethnic problem.  A Chinese taxi driver told us not to take  Indian taxis, because they would rip us off (perhaps in this case a  justified prejudice, judging from our limited sample).  Surveys have  shown that racial stereotypes are widely held in Malaysia, with people  believing Malays to be lazy, Chinese greedy and Indians dishonest.
Third,  Islam is manifesting itself in Malaysia in strange ways.  People may  think of Malaysia as the more modern and cosmopolitan of the two Muslim  Southeast Asian nations, but, it seems to me, Malaysia, far more than  Indonesia, is turning to a sort of fundamentalist version of Islam that  is bizarrely conservative and reactionary.  (I have read that the rise  of fundamentalist Islam in Indonesia was at one time called "the  Malaysian problem" because Malaysia was the Asian source of the  movement.)  All Malays are subject to sharia (or Islamic law) courts,  which have ruled apostasy a crime.  Malaysia is famous for having  pursued, essentially as a political crime, a sodomy charge against a  former prime minister.  Our bus station altercation involved an argument  with a woman, whom I had to shake off of me at one point because she  was forcefully grabbing my arm and not letting go--a person standing by  told me that I should have my hand cut off for fighting with a woman  ("chop chop chop," she cheerfully said, making a chopping gesture with  her hand), a demented vision of Islamic punishment.  Ideas which are out  of date seem even more backward when placed in a foreign cultural  setting--it may make sense for some Arab countries to wish to revert  back to a more glorious Arab past, but in Malaysia the adoption of the  foreign code of behavior feels not only anachronistic (shifted in time)  but misplaced (shifted in space and culture).
Finally, however  Malaysia may try to sell itself as a developed country, the primitive  state of some of its public transport culture shows that it is in some  ways still very much a third world country.  First, the taxis.  I  remember, not too long ago, when taxis in Korea used to rip customers  off--overcharging foreigners, refusing to use the meter, refusing to go  to certain parts of town, etc.  At some point, some combination of the  government, drivers and customers recognized that developed countries do  not behave this way, and taxis are now, for the most part, totally  clean.  Vietnam is clearly still on the developing end of the scale,  according to this metric, while Thailand with its combination of meters  and crooked drivers falls somewhere in between.  The taxis in KL are  some of the absolute worst for ripping travelers off--perhaps the only  place we've seen worse is Delhi, and that's saying an awful lot.   Drivers in central KL routinely refuse to use their meters and instead  quote astronomical rates that are multiples of the proper fare.  Rather  than turn their meter on or accept a reasonable fare, they will simply  tell you to get out of their car.  The government apparently lacks the  will or the means to clean this up, despite the extremely poor  impression it makes on travelers to Malaysia, while the lack of dignity  on the part of the drivers reveals a grave deficiency in the levels of  civics and ethics. 
But even worse than the taxis (after all, a  common problem, even if not to the level of KL) is the situation at  Puduraya Bus Station.  Puduraya is the country's largest bus station and  is located right in the heart of KL.  If you've been in Korea or Turkey  or Mexico or any other country with well-developed bussing, you know  that bus lines can be extremely comfortable and professional.  I recall  that the main bus terminal in Mexico City is pretty much like an airport  in terms of modernity and efficiency, Turkish busses famously have  attendants that give you cologne and Korean busses leave precisely on  time, almost to a fault, with many offering 2-1 seating (two seats on  one side of the aisle, one on the other).  Even Indian bus stations, for  all their chaos, are pretty well run, with reliable schedules and fares  by state-owned companies.
Puduraya is, simply put, the worst bus  station we've ever seen.  The place is in congested central KL (has  no-one thought to move this thing a bit out of town?) and, in steamy  Malaysia, not air conditioned.  All of the guidebooks refer to it as a  den of pickpockets.  There are some fifty or so ticket  counters--competition run amok with no sense of regulation--and no  centralized way to figure out when what busses are going where.  Worst  of all are the many scams.  We fell prey on the one ride we tried to  take out of Puduraya and met another tourist who was also an angry  victim.  Reports online suggest that the scams are extremely common, not  only but especially for tourists.  It goes something like this:  You  buy a ticket, and at some point someone pretends to be a ticket agent  and tears off your stub.  Given the chaos of the station, with literally  dozens of companies, almost no-one in uniform and multiple companies  operating in each bay, this does not happen only to the naive.  Then,  when it comes time for you to get on your bus, you are told that your  ticket is invalid and your assigned seat has been sold to another  passenger.
What happened to us was a slight variation on this.   We showed up for our bus exactly seven minutes early, but didn't find a  bus.  Bus station employees who were standing at our bay told us to  wait, and then tore off our ticket stub.  After waiting for twenty  minutes, we realized that our bus must have left without us (as we  learned later, after filling our seats with other passengers who were  charged an on-the-spot premium for getting on an earlier bus), and so  went angrily to ask for a refund.  At the counter, we were told that our  tickets could not be refunded because the stubs had been torn off,  despite the fact that we were not the only passengers who had been  waiting, promptly and in the right place, and never even saw the bus.   Basically, this ploy allows the companies to sell more tickets than  there are seats on the bus.  In our case, with a typically Malaysian  twist it turns out, this dispute led to the crook running up behind me  and hitting my head with a heavy walkie-talkie.
When Derek  defended me with a quick punch to my attacker, an angry crowd of Malays  converged, all siding with the attacker (later we learned that they were  likely other resident con-artists who were part of the same gang).  But  many others knew exactly what was going on.  A taxi driver (figuring it  best to get out quickly, we opted for an expensive long-distance taxi  instead of trying another bus) told us that there's a "mafia" of ticket  sellers and con artists operating at the station, selling tickets to  buses that don't exist and otherwise getting people to pay for tickets  that they cannot use.  It is equally well known among well-seasoned  travelers.  To quote Lonely Planet's Thorntree message board:
"Having  been traveling for over 16 months through Northern Asia, Latin America,  Australasia and now South East Asia we have seen a lot of bus stations  (at the moment we have used over 115 intercity buses on this trip) but  we agreed that Puduraya was the worst we had seen so far in terms of  ease of use, safety and reliability. "
"Agreed, Kuala Lumpur's  Puduraya Bus Terminal is a hellhole. Those of us who know Puduraya would  love to avoid it, but when going through KL [by] bus, there are few  options. For a country that pretends to be on the treshold of joining  the First World league of nations, it has some of the worst bus  terminals anywhere; even India's are better; Malaysia's bus terminals  are not even Third World, but more like Fourth World. "
Given  these safety concerns, the institutionalized racism and racial tension  and "fourth world" transportation hassles, is it any wonder that so many  travelers prefer to go to friendly Thailand, rustic Laos or  service-focused Bali?

