The government regards extremists as a threat to "the Malaysian way of life" and is mindful of the need to clamp down on all forms of extremism whether religious, racial and ideological, Deputy Prime Minister Abdullah Ahmad Badawi said today.

Reiterating Malaysia's strong stand against terrorist activities, he was quoted by Bernama news agency as saying that "our stand has been repeated clearly and frequently we will not tolerate any form of terrorism."

Noting that Malaysia has been excluded from the top 25 of the foreign direct investment (FDI) index, he said: "One of the reasons given was the fear of terrorism."

"But this is merely a problem of perception. Maybe it is because of the good work of the police," he said in his luncheon address at the HSBC Malaysia Investment Conference in Kuala Lumpur.

"They have arrested quite a number of extremists and so people think there are many terrorists (in the country)," he said, tongue in cheek, at the gathering comprising investors, fund managers and analysts.

Malaysia has been losing foreign investments. In the first six months of this year, it received only RM2.2 billion in approved investments against RM18.8 billion for all of last year.

About 100 people, of whom half were from Singapore, a third from Hong Kong and the rest from multinational companies in Malaysia, attended the function.

The lunch was hosted by HSBC Malaysia's deputy chairman and chief executive officer Dyfrig John.

Central pillar

The government, said Abdullah, recognised the fact that economic prosperity could not be attained automatically and that "the government of the day" must ensure security and stability so that the country could post consistent growth.

"It must provide an environment that is conducive to openness and tolerance.

"This is a central pillar of Malaysian policy to foster national unity because of the multiracial, multicultural, multireligious make-up of the population," he said.

The deputy premier said that the government could not tolerate groups that have been involved in transnational terrorist activities that sought to overthrow, among others, the Malaysian government.

Be firm and fast

As Home Minister, Abdullah said, he had not compromised in dealing with such groups.

"We must be firm and fast in our response before terror breeds within our midst.

"Thus, we will continue to be vigilant and monitor against any forces that intend to destablise peace and harmony in the country.

"These are the building blocks upon which the Malaysian success story has been built," he added.