The decision, made by the Cabinet on December 18, became public the day India’s Defence Minister A K Antony ended a three-day visit, which both sides hailed as a boost to rapidly growing bilateral relations, including military links.

The decision was not conveyed to Antony during his talks with Prime Minister Abdullah Ahmad Badawi, Deputy Prime Minister Najib Razak and Foreign Minister Syed Hamid Albar, and apparently caught the Indian High Commission by surprise.

The Cabinet decision was made December 18, but was not officially announced. It was confirmed by a Home Ministry official only when reporters called for clarification on a statement by a religious group that Indian temple workers were being denied permission to work in Malaysia.

The Indian High Commission said it is in touch with the “authorities concerned on the reported circular.” It did not elaborate.

The Home Ministry official said Indians workers who are already in the country will be allowed to carry on, but their permits will not be renewed. He said the ban is related to a recent unrest by the country’s minority ethnic Indians, who are demanding racial equality in the Muslim majority country.

Meanwhile, the government has also barred all major airports in Malaysia from employing foreign workers, claiming they didn’t want tourists to be taken aback on being greeted by a sea of non-Malaysian faces on arrival. A

Cabinet committee on tourism has ruled that the main Kuala Lumpur international airport and other key hubs in the country must only hire Malaysian workers, Deputy Prime Minister Najib Razak was quoted as saying by the national news agency Bernama.

“We will issue rulings to (airport operator) Malaysia Airports to ensure that the workers are Malaysian citizens,” he said in the report, adding that airports need to comply with the ruling as soon as possible. An aide to Najib confirmed his comments. About 140,000 Indians from India work in Malaysia, constituting the third largest foreign work force. Most work in low-paying jobs as waiters, barbers and gardeners. however, some hold top professional posts in banks and information technology industries.

The ban did not specify whether professionals were also included, but the order is believed to cover all categories of workers from India, the Home Ministry official said. He said the three categories of Hindu temple workers were singled out in the order because some of them were believed to have fanned emotional anger in the local Indian community through their sermons and support.

About 20,000 ethnic Indians, most of whom are Hindus, demonstrated on the streets on November 25 in a rare and open challenge to the government. Subsequently, the government jailed the top five leaders of the group that organised the protest, the Hindu Rights Action Force, or Hindraf. Hindraf angered the Malaysian government when its chairman fled the country after the November 25 protest and lobbied for support among Indian politicians. India has said the unrest is Malaysia’ affair, but has also said it is concerned about the welfare of all ethnic Indians in the world.

Ethnic Indians in Malaysia say they face discrimination in jobs, education and business because of an affirmative action program for the majority Malays, who are Muslims. The Indian also say their religious rights are being trampled by Islamic officials. Malays form about 60 per cent of Malaysia’s 27 million people while ethnic Indians are 8 per cent.