Malaysia is a multi-racial and multi-religious country that consists of the Malays, Chinese and the Indians as the main three races. Malaysian government has created and implemented various programs and policies to preserve and strengthen the relationship among the races. The main objectives of the study are to identify whether the history, politics and the education system are the factors that shape racism feeling among the residents of Kampung Medan that affected their relationship and to examine the most influential factor that contributes to the shape of racism that will negatively affect the harmonious relationship among the races in Kampung Medan. The simple random sampling method has been used and the random 188 residents of Kampung Medan had been chosen as the respondents for the study. The researcher had carried out quantitative analysis on the data. In addition, the researcher also used standard SPSS statistical measures for the quantitative information. The findings showed that history is the most influential factor for them to be racist among each other. They agreed that the race-based policies that Malaysian government is practicing ever since before independence until now led the non-Malays to be dissatisfied and caused the racial division in Malaysia. Identifying the most influential factor that negatively affected their relationship could preserve the harmonious relationship of Kampung Medan relationship.