(AFP) The bewildered faces of four little girls barred from school for wearing tudung (head scarf) brought the world's longest multi-ethnic party to a controversial close in Singapore and Malaysia this month. Celebrations began in November with Deepavali and ended with Chinese New Year this month.

In between came Hari Raya, Christmas, and ordinary old calendar New Year with its balloons and booze. Ethnic and religious diversity, long the fuel of wars, have been the key ingredients of the four-month cultural cocktail party in Malaysia and Singapore.

But the neighbours have radically different approaches to their racial and religious balancing acts, with Singapore playing down differences while Malaysia accentuating them. Both countries have the same racial mix, with large percentages of Chinese, Malays and Indians.

But while the Chinese dominate in Singapore, Malays are the majority in Malaysia. The Singapore government says its ban on schoolgirls wearing tudung is to promote racial harmony through assimilation, in the same way it discourages race-based politics.

Malaysia, on the contrary, highlights its racial differences in everything from tourism advertisements to distinct Chinese, Malay and Indian political parties. "In Malaysia we have institutionalised racism, with affirmative action for Malays in education and business," says Malaysia University political scientist P Ramasamy.

"But I think the Chinese and Indians are largely reconciled to that and as long as they are allowed to pursue their own economic and educational interests the system seems to be working." He said that while it would be virtually impossible for a Chinese or Indian to become prime minister - and this might suggest a lack of full citizenship - "they seem resigned to that fate".

"But they do have a stake in government through the ruling coalition," which brings together Prime Minister Dr Mahathir Mohamad's Umno, MCA, MIC and others.

Racial percentages

When British colonisers withdrew at independence in 1957, having been responsible for bringing in Chinese and Indian workers for the tin industry and rubber plantations, many muttered darkly about the likelihood of racial conflict.

But Malaysia's record of racial peace has been relatively good since serious 1969 Malay-Chinese clashes, marred only by a brief flare-up of Malay-Indian riots in March last year in which six people died.

Racial tensions in other countries around the world, with less volatile mixes, put Malaysia's record into perspective. Malays make up some 60 percent of the country's 23 million people, Chinese 26 percent and Indians nearly eight percent.

In the United States, African-Americans make up just 12 percent of the population, while in South Africa whites make up about the same percentage - less than half that of the Chinese in Malaysia. In Britain, home to occasional race riots, Indians make up 1.5 percent and blacks of African descent 1.6 percent.

In Australia, recently wracked by a bitter row over immigration, Asians make up six percent.

"There is very little interpersonal hostility among the races in Malaysia," says Ramasamy. It is not uncommon at lunch time on the streets of Kuala Lumpur to see Chinese women in mini-skirts walking alongside Malay colleagues in full-length dresses and headscarves.

But there is less interracial socialising after hours, and many will privately admit to stereotypical generalisations about other races - "Malays are lazy, Chinese avaricious". The terror attacks of Sept 11 in the United States have added a new dimension to this - "Muslim extremists are dangerous".

Party time

Malaysia's opposition coalition fell apart within weeks of the attacks over the dominant party's plan for a purist Islamic state. "Non-Malays fear alternatives to the ruling coalition," says Ramasamy. Mahathir's government has been quick to capitalise on this.

"Extremist factions, using religion or race to achieve their objectives, will not be allowed any opportunity to create trouble in the country," Deputy Prime Minister Abdullah Badawi said in his Chinese New Year message last week. After the terror attacks "Malaysians now realise that a stable community, racial harmony and national security must be preserved."

Mahathir, who was on a holiday cruise to the Antarctic, called for Malaysians to "visit each other's homes and use this opportunity to strengthen the ties between us."

Malaysia has a unique "open house" system in which political leaders from the prime minister down throw parties marking the celebrations of their own ethnic group, to which all are welcome. Thousands turn up.

Perhaps the relative racial harmony is simply explained - everybody is delighted to share all the public holidays. Since November there have been days off for Deepavali, Hari Raya, Christmas, New Year and the Chinese New Year, plus a few other national celebrations.