Abstract: Towards the end of 19th century, the discovery of tin
and the growing importance of rubber, had led Malaya to once again
become the centre of attraction to western colonization, which later
on caused the region to be influxed by cheap labour from China and
India. One of the factors which attracted the alien communities was
the characteristics of social relation offered by the Malays. If one
analyzes the history of social relation of the Malays either among
themselves or their relation with alien communities, it is apparent that
the community places high regards to values such as tolerant,
cooperative, respectful and helpful with each other. In fact, all these
values are deeply rooted in the value of 'budi'. With the arrival of
Islam, the value of 'budi' had been well assimilated with Islamic
values thus giving birth to the value of 'budi-Islam'. Through 'budi-
Islam', the Malay conducted their dealings with British as well the
other communities during the time of peace or conflict. This value is
well nurtured due to the geographical circumstances like the fertile,
naturally rich land and bountiful marine life. Besides, a set of Malay
customs known as 'adat' custom contributed in enhancing the values
of budi.