New Delhi: Malaysia has put a freeze on all workers from India for every kind of job ranging from construction, information technology to financial services.

Permits of existing Indian workers will not be renewed either. One official said that the freeze is almost certainly linked to the recent protests by ethnic Indians in the country.

The ban, which took effect from Dec 31, 2007, could further strain relations between the two countries after some Indian politicians sympathised with ethnic Indians who said they have been marginalised by the Malay-majority government.

Ethnic Indians staged their biggest anti-government protest in Malaysia in November last year. Thousands of protestors braved tear gas and water cannons to raise their voice against alleged racial discrimination.

Mostly Tamils, the protestors are the descendants of 19th Century indentured labourers who worked for British colonists.

They comprise nearly 8 per cent of the Malaysian population and most of them earn low incomes and work in menial jobs.

In the year 2000, Time magazine had reported that Indians had the lowest share of Malaysia's corporate wealth — which is 1.5 per cent, compared to 19.4 per cent for Malays. In fact, 15 per cent of the ethnic Indians in Kuala Lumpur are homeless.

According to latest figures, the highest rate of suicide in any community is also among ethnic Indians in the country.

The affirmative action policy in Malaysia adds to their woes, as it favors Malay Muslims in jobs, education, business and government contracts.

Such is the feeling of discrimination and neglect that a non-governmental organisation, Hindu Rights Action Force, also called HINDRAF, filed a $4 trillion legal suit against the government last month, demanding compensation for what they call "150 years of exploitation" of ethnic Indians by their colonial masters.