Prime Minister Abdullah Ahmad Badawi today welcomed the transfer of sovereignty in Iraq and "the restoration of dignity to the Iraqi people".

"Malaysia hopes that this very important step will, in accordance with the timeframe already set, lead to the smooth transition to full sovereignty," Abdullah said in a statement.

As chairman of the Organisation of the Islamic Conference (OIC) and of the Non-Aligned Movement (NAM), Malaysia "looks forward to Iraq's early resumption of its rightful position as a sovereign member of the community of nations," he said.

Iraq is a member of both the OIC, which groups the world's Islamic countries, and the NAM, which brings together developing nations.

"At this crucial juncture, Malaysia expresses its best wishes to the people of Iraq that peace and stability will prevail throughout the country so that the transition process can be completed on schedule without interruption," Abdullah said.

Malaysia, which was a strong opponent of the US-led invasion of Iraq, believed the United Nations should play an important role in the transition and reconstruction of the country, he added.

Asked whether Malaysia was prepared to help reconstruction efforts, Deputy Prime Minister Najib Razak told the official Bernama news agency: "We will first see subsequent developments, what is important is that the government must be accepted by the people." - AFP