This paper examines the processes of formation and development of the image of `modern` East Asia(including Southeast Asia) in terms of the description and analysis of the formation and development of Malay nationalism. It investigates the speciality of the image of `modern` Malaysia in perspective of the development of Malay nationalism. I intend to examine the interaction between the British colonialism and Malay nationalism from 1892 to 1941, when that time would be regarded as the peak period of the British colonial dominance. The British colonialism had an influenced on the almost all aspects of the Malaysian society(Malaya society, at that time) in general, on the Malays` everyday lives in particular. That influence remains in the contemporary Malay society and culture strongly. In this sense, I will argue whether the outcome of the British colonialism would discontinue the history and culture of Malay society in Malaysia, or not. From the Malays` point of view, I investigate how the Malays recognize the outcome of the British colonialism, and what are the influences of the British colonialism on the Malays` everyday lives. From the historical perspective, the background of appearance of British colonialism and the Malays` responses to that in perspective of Malay nationalism will be examined. Especially I will pay attention to the responses of the Malay nationalists to the British colonial policy and governance. The most Malay nationalists who were the Ulama(the Islam leaders or Islamic religious scholars) in that time, could afford to keep the traditional customs(adat) and Islam under the circumstances of the British colonial regime. In this regard, the Malay Islam gave the best contribution to the development of Malay nationalism. In conclusion, I would like to emphasis that the image of modem Malaysia would not be dealt with the concept or definition of `modern` which would be derived from the Western cultural or intellectual traditions. It is necessary to deal with the image of modern Malaysia in perspective of the originality of Malay nationalism. In order to understand the Malay nationalism properly, I suggest that the explanation of the formation and development of Malay nationalism can be given, not by the concept of `modern` originated from the Western world, especially from the British colonial worldview, but by the concept of `modern` generated from the Malay world or the Malay culture in itself.