Malaysia on Sunday faced its second big anti-government demonstration this month after nearly a decade’s absence of such protests, raising fears about whether the multi-ethnic country’s deep racial divisions could affect its stability.

Police used tear-gas and water cannon to crush a banned rally by 10,000 ethnic Indians, who were protesting about alleged discrimination by the ethnic Malay government. Ethnic Indians – 8 per cent of the 25m population – are Malaysia’s poorest racial group.