Malays are increasingly referring to themselves as Muslims (religious identity) rather than Malay (ethnic identity). Despite the importance of their religious identity in understanding themselves, it is also significant in intergroup relations with others in Malaysia. This study identified the components of Malay-Muslim identity social-psychologically and examined their influences on non-Muslim public roles. Previous studies have not considered Malay-Muslim identity from an approach to social identity. The study involved questionnaire surveys. The data collected were analysed using statistical analysis. The results indicate that the salient identity of Malay is Malay-Muslim, and the Malay religious identity displays substantial bias towards non-Muslims, especially when perceiving that nonMuslims should not participate in government employment and typically hold prominent positions. These responses, from the perspective of social identity, are due to in-group identification which creates differentiation or boundary between Muslims and non-Muslims. The study concludes that prejudicial acts towards non-Muslims are mainly due to religious identity which represented one of the main influences for the exclusion of non-Muslims in public roles. The study proposes that the communities should emphasise and promote Malaysian identity instead of religious identity because religious identity demonstrates prejudice and bias.