A new wave of Indonesian immigration to the east coast or northwest brought irrigated cultivation of rice, bananas, yams, and cocoa. Immigrants encountered earlier mix of Indonesian settlers and Africans, whom they called Vazimba. The two groups initially cooperated but eventually come into conflict, which led to the founding of Merina state on the interior plateau, toward the end of the period. The new immigrants (including Muslims) brought institutions of royalty, which had not existed previously on the island, but the developing political institutions reflected the contributions of Asians, Africans, and Muslims.
By this time, Muslim settlements comparable to the Swahili coastal towns had been established on the northwestern and (later in the century) northeastern coasts, for trading with the Swahili and Arab worlds. The settlements exported rice and soapstone carvings in exchange for imported pearls, cloth, and Chinese ceramics. (See Madagascar)