Okemos
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Majority of Malaysian Indians are Tamil dalits who went there as indentured laborers to work in their plantation industry. They were extremely poor to begin with. The government's discriminatory policy and the faulty policies of the Tamil leaders has made sure the cycle of poverty continues.
Malaysia is probably the only country which actively discriminates against its racial and religious minority in education, jobs and business through its "Bhumi putra" policy. while the Chinese, being a business class can wade through this discrimination, the tamil plantation workers find it impossible to better their lives. On the other hand, Tamils who went to work as clerks and administrators for the British are very successful, along with merchant classes of Gujarat and Punjab. In fact the second richest Malaysian is a Tamil.
Malaysia is one, if not the most, disgusting modern country in the world for the reasons you stated. Instead of helping minority populations, the State actively implements discrimination against minority populations.
Where the heck is the self-proclaimed human rights watch dog, the U.S.? I would love to read its annual human rights whitepaper on Malaysia.
Personally, I will never visit Malaysia. My heart goes with those struggling dalits.