The announcement on Friday came a day after a coroner’s court said it had been unable to determine the cause of the 2009 death of Teoh Beng Hock, a member of the mainly ethnic Chinese Democratic Action Party.
Teoh was found dead after falling from an Anti-Corruption Commission building shortly after being questioned. His funeral drew thousands of angry mourners and opposition leaders demanding justice.
“The government wants to know truth, and we will do our utmost to find out what happened,” Prime Minister Najib Razak told reporters at his office after announcing the formation of the commission.
Ethnic Malays make up 55 percent of the country’s 28 million people and they have traditionally dominated politics. Ethnic Chinese, the biggest minority at 28 percent of the population, dominate much of the country’s commerce.
Ethnic Indians make up eight percent of the population.
Complaints of marginalization by minorities pushed the government to record losses in a 2008 general election.
Najib took power in 2009 pledging to heal a widening rift between the communities but ties have remained tense.
An improving economy has given Najib a window to call snap polls this year but minority discontent remains his biggest political worry.
Najib denied that the decision to form the commission was because of political pressure, saying he had promised to set one up shortly after Teoh’s death.
A survey by opinion pollster the Merdeka Center found ethnic Chinese approval for Najib consistently the lowest among the country’s three major ethnic groups at 54 percent in December compared with 74 percent approval among Malays.
“This case will definitely drive voter unhappiness toward the government,” said political analyst Khoo Kay Peng.
Political uncertainty in the aftermath of the 2008 polls has dampened foreign investor enthusiasm for Malaysia, with questions raised over Najib’s political will to enact major tax reforms and subsidy cuts ahead of an election.
Najib’s softening stance on a promise to reform controversial preferential equity ownership rules for ethnic Malays has also disappointed investors who are increasingly opting for faster reforming neighbors such as Indonesia.
