I've always against to rule something or even a country by religion.

Conflicts between religions had caused wars and disaster for centuries.

Different people can already have different view on a matter - measure it by different religion will only complicate the situation.

So, making country a secular state is something worth thinking.

Racism, on the other hand is also equally bad.

Within the same race, there are people who can think that they are 'they are superior'.

And having rules and policies that favours a certain race will only cause disharmony and won't help unity at all (let alone, causing racism)

If you insist to rule by religion & race, I'd suggest 'Human' as the sole race and 'Human Rights' as the sole religion.

Ruling by religion & race, I can see 1Malaysia can never reach its objectives.