The BLUE MyKad is only issued to Malaysian Citizens and therefore you could say that it is proof of citizenship. However there are also a number of other colours in use which do not indicate citizenship. The RED MyKad is for those who hold Entry Permits. An Entry Permit holder has permanent residence. Normally it is issued after 5 years legal residence but certain visas do not qualify e.g. employment visas. The GREEN MyKad is issued to stateless persons who can produce a Malaysian birth certificate (Malaysia is one of the few countries in the world which does not recognize country of birth as proof of citizenship). The SILVER MyKad (discontinued) was issued to MM2H holders. Given that the business community ask for production of a MyKad for almost everything, it is a tremendous disadvantage not to have one of these if you are a resident. Ignorance of the law and prejudice against foreigners also results in denial of service in some cases, and the lack of any functioning consumer council or civil rights body in Malaysia ensures that these petty injustices continue. In fact under the Malaysian Constitution EVERYONE is equal under the Law (Sharia Law Excepted). Only matters concerning immigration require differentiation e.g. illegal residents are protected under the Constitution from unlawful acts committed against them, but they are also liable to removal. Of course there are also two classes of citizens - bumi and non-bumi, but that is a whole different thread.

The problem with Malaysian civil servants is that they are poorly paid and badly trained. If you are nice to them they might just help you, but chances are they don't actually know the answer to your problem and don't know how to find out. If you are rude to them they will actually go out of their way to give false information. There's no attitude of service to the public. Its more like a job for life and the public are an inconvenience.