I think the unhappiness and dissatisfaction of Malaysians with government are many folds. I seem to gather at least the followings(my 2 cents):
1. Wide spread corruption, cronyism and nepotism: Big projects, highly lucrative businesses and economic opportunities almost always are given or awarded to parties who agree to give cuts of something like 5-100% of the deals to parties or middlemen, rent seekers with closed links to ruling parties and their leaders, government officials *and civil servants. Many of these rent seekers and fat cats in the present government and system are targets for sacking.*
Such corruption, cronyism and nepotism siphons off a very large chunk of the wealth of the country and represents a very big burden on *people in terms of taxes and deprivation of developments and services.
2. Corruptions and lack of integrity of the judiciary: when people suffer injustices at the hands of the rich and powerful, people with authorities, *these influential people have ways to gain advantage and escape unpunished, perpetuating non-closure and the suffering of the victims. In such environment, people feel unsecured as injustices could befall without reliable recourse any moment and happiness in life be taken away forever.
3. Racial politics: Country is run along racial and religious lines *in economy, civil service, uniformed service, educations,...etc. People do not want to be deprived(or insulted and told what they can do or cannot do) of their freedom and entitlements(in all aspects of life) *based on their races or religions. Such political situations contributed to the very severe *economical and political *marginalisations of smaller and weaker groups in society, forming the basis of instability in the country.*
4.*Efficiency of the government, civil service: Using Singapore as a benchmark as both starting off at about same level of socio-economic development some 50 plus years ago, Malaysia's *performance *leaves a lot of room for improvements.
Malaysia is endowed with abundance of resources with a land area about 500 times Singapore and population 6 times that of Singapore. Despite all these natural advantages, Malaysian government has been delivering an economy with GDP about same size that of Singapore, per capita income 1/4 of Singapore with generally less advanced infrastructures, public services and educational levels and institutions.
Well said, sgtsk, u've read the ground well.