P. Uthayakumar said he formed the Human Rights Party because both Malaysia's ruling coalition and a three-member opposition alliance had failed to address Indian grievances including a lack of jobs, decrepit schools and limits on religious freedom.

Ethnic Indians make up about 8 percent of Malaysia's 28 million people, and many are at the bottom of the social and economic ladder. Muslim Malays make up nearly 60 percent of the population and control the government. Ethnic Chinese comprise about a quarter of the population and dominate business.

The new party is targeting 15 seats in the 222-member Parliament in the next general elections due in 2013, Uthayakumar said.

"Our main objective is to put Indians back into the national mainstream of development after having been left out for 52 years" since the country's independence, he told The Associated Press.

Uthayakumar and four other leaders of an anti-government movement known as Hindraf were arrested in December 2007 after they led an unprecedented street protest by tens of thousands of Indians demanding equality.

The demonstration unleashed a groundswell of anger among minorities against the government that was reflected in general elections three months later, when the ruling National Front returned to power with a greatly reduced majority.

The movement was banned, but new Prime Minister Najib Razak, who has sought to appease minorities, freed two of the Hindraf activists the day he took office on April 3. The three other key leaders, including Uthayakumar, were freed in May.

Uthayakumar said he has applied to register his party, but it has not yet been approved.

Malaysia already has three parties that claim to represent ethnic Indians. Two are part of the ruling coalition, while another is a breakaway group from Hindraf set up in May.