This article lists important figures and events in Malaysian public affairs during the year 1981, together with births and deaths of notable Malaysians.
10 May – Sultan Ismail Al-Khalidi of Johor died at the age of 86. He was buried at the Mahmoodiah Royal Mausoleum in Johor Bahru. His son, Tunku Mahmood Iskandar was proclaimed as the 24th Sultan of Johor and 4th in the modern Sultan of Johor.
17 September – The new Rajang Area Security Command (RASCOM) headquarters was officially opened in Sibu, Sarawak.
11 October – A Malay rubber tapper named Jaafar Patola killed six people and wounded 25 others in Parit Setan, a village near Benut, Johor before being shot dead by police.