Malaysia has once again resurfaced in international headlines for the wrong reasons. Over the last two weeks, arsonists and vandals attacked 10 places of worship, including Christian churches and Sikh temples. Though there were no injuries and the material damage is reparable, the same cannot be said about the emotional and psychological scars left behind. After numerous conflicting statements from government officials, the underlying causes of the violence are still unaddressed. Malaysia's reputation as a nation at peace with its ethnic and religious diversity is at stake.

Malaysia's poor handling of religious and sectarian issues is not unique. The ill treatment of minority groups in Muslim countries is often worse than the actions Muslims decry in the West. I have called attention to the broader need in the Muslim world for leadership that demonstrates consistency and credibility in our call for justice, fairness and pluralism. These values are embedded in the Islamic tradition as the higher objectives of Shariah expounded by the 12th-century jurist al-Shatibi.

We have seen Muslims around the world protest against discriminatory laws passed in supposedly liberal and progressive countries in the West. Yet just as France and Germany have their issues with the burqa and Switzerland with its minarets, so too does Malaysia frequently fail to offer a safe and secure environment that accommodates its minority communities.

The recent arson attacks exemplify what's wrong with the way Malaysia regards its non-Muslim citizens. The attacks were provoked by a controversy over the use of the word "Allah" by Malaysia's Christian community, which numbers over two million, or about 10% of the population. In late 2007, the Home Ministry banned the use of the word by the Herald, a Catholic newspaper, and later confiscated 15,000 copies of Malay-language Bibles imported from Indonesia in which the word for God is translated as "Allah." A Dec. 31, 2009 ruling by the Kuala Lumpur High Court overruled the earlier ban, asserting constitutional guarantees regarding the freedom of religion in Malaysia. Since then, an already tense situation boiled over, largely due to incitement by a few reckless politicians, the mainstream media and a handful of nongovernmental organizations linked by membership and leadership to the United Malays National Organization, the ruling party.

For example, Utusan Malaysia, the nation's largest Malay-language daily-which is also owned by UMNO-has inflamed Muslim religious sentiments by accusing non-Muslims of desecrating the name of the "Muslim" God and alleging a Christian conspiracy to overrun this predominantly Muslim nation through conversion. I have seen these incendiary propaganda techniques used before, when politicians and demagogues exploit public sentiment to garner support by fomenting fear. Such tactics are useful diversions from embarrassing scandals ranging from controversial court decisions, to allegations of exorbitant commissions extracted from military procurements, to the theft of two jet engines from the inventory of the Royal Malaysian Air Force. This behavior has been exacerbated since the ruling party lost its two-thirds majority in parliament last year. UMNO is now desperately struggling to regain public support.

Few Muslims around the world would endorse the claim that we have a monopoly on the word "Allah." It is accepted that the word was already in the lexicon of pre-Islamic Arabs. Arabic's sister Semitic languages also refer to God as "Allah": namely, "Elaha" in Aramaic, and "Elohim" in Hebrew. Historical manuscripts prove that Arabic-speaking Muslims, Christian and Jews have collectively prayed to God, the Creator and Sustainer of the Universe, as "Allah" for over 1,400 years. The history of Islam in Southeast Asia is known for its pluralistic and inclusive traditions, and amicable relations between Muslims and non-Muslims have been the norm for generations.

Muslim scholars outside of Malaysia thus find our "Allah" issue absurd and cannot fathom why it has sparked protest and outrage. Minority Muslim populations living in the West, particularly in the aftermath of 9/11, have diligently tried to remind the public that Muslims, Christians and Jews share common Abrahamic roots and ultimately worship the same God.

Local sensitivities have been aroused over this issue. They should be handled through dialogue and engagement. Instead of permeating a sense of insecurity or a siege mentality, Muslims must be encouraged to engage and present their concerns to the Christians in a constructive manner. The example of Muslim Spain is a moment in our history to which Malaysian Muslims should aspire. But efforts toward fostering a convivencia are not only found in the past. The ongoing "Common Word" initiative, a global effort launched in 2007 that captured the support of over 130 of the world's most prominent Muslim scholars, has made historic progress towards building goodwill among Muslims and Christians to find ways to live in sincere peace and harmony. It is ironic that noble efforts such as these are being undone by the actions of Muslims themselves.

Malaysia's international reputation has taken a beating since Prime Minister Najib Razak was sworn in last year. Despite his efforts to promote national unity, news about the caning of a young Muslim woman charged with drinking, the mutilation of a cow head in protest of the construction of a Hindu temple, ill treatment of Muslim converts who revert to their earlier faith and even the outlawing of the practice of yoga by Muslims have many at home and abroad wondering which direction Malaysia is headed under Mr. Najib's leadership. There are already misgivings about governance, human rights, the rule of law and rampant corruption; Malaysia dropped 10 spots on Transparency International's 2009 Corruption Perception Index, our worst showing in over 15 years. The vision of Malaysia as a peaceful and stable location for investment, tourism and migration is now in peril.

This matters most for Malaysians who have to contend with an increasingly polarized social and political landscape. Malaysia cannot afford to be held hostage by the vested interests of a few who manipulate faith and identity as a means to elicit fear for political and economic gain. This is old politics, and it has become clear that those who incite hatred are only doing so to prolong their monopoly on power. The majority of Malaysians reject this approach. They realize that overcoming the challenges we face-a stagnant economy, declining educational standards and rising crime-depends on our ability as a nation to internalize and make real the principles of fairness and justice to all.

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Mr. Anwar Ibrahim, a former deputy prime minister of Malaysia, is a member of parliament for the Justice Party and leader of the opposition.