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A review of dairy development and crossbreeding programmes in Malaysia since 1953 is undertaken, based on the relevant literature and the writer's experience. The need for higher domestic milk production and the role of crossbreeding in the realization of this objective is explained. A retrospective evaluation is made of the past crossbreeding programmes and of the decision to use temperate dairy breeds for the purpose. Current dairy development under the 'New Economic Policy' of the Malaysian government and the major problems connected with the importation of high-milk producing animals are discussed. To overcome existing constraints, future strategies for crossbreeding and dairy development, based on long-term objectives, are proposed. It is concluded that crossbreeding will only be useful if the introduction of high yielding dairy animals is combined with an improvement of existing husbandry systems.