Malaysia marked its 47th Independence Day today with a new prime minister firmly in power after recent election wins and a buoyant economy set to expand faster than 6.5 percent this year.

Prime Minister Abdullah Ahmad Badawi, who succeeded Mahathir Mohamad on October 31 last year to become the fifth premier in this former British colony, led his countrymen in shouts of "Merdeka" (independence) as the clock struck midnight and fireworks lit up the sky across the nation.

Abdullah, King Tuanku Syed Sirajuddin and cabinet members later attended a national day parade of more than 20,000 people in Kuantan in central Pahang state, about two hours away from the capital Kuala Lumpur.

Malaysia's 13 states take turns to host the annual ceremony, which is broadcast live on national television. Smaller-scale festivities were also held around the country.

In his first Independence Day message as premier, Abdullah stressed that everyone was equal in the predominantly Muslim nation, which has large ethnic Chinese and Indian minorities.

"Let all citizens of Malaysia, without feeling inferior, without feeling sidelined, irrespective of race and religion, rise to become statesmen in our own land. We are equal, we are all Malaysians," he said.

"Unleash your potential and shape this country of yours the way you want it to be."

Resounding victory

Abdullah said the around three-quarters of Malaysia's 24 million people who were born after independence from Britain in 1957 may not understand how bitter life had been colonialisation. Nonetheless they should be proud of their heritage and fight to protect their freedom, he said.

"Malaysia is our country, our right, the symbol of our integrity and sovereignty. Only we have the right to decide the fall and rise, development or backwardness of this country," he said.

"It's better we ask ourselves: as a Malaysian, have I done my duty as a citizen to at least make Malaysia a nation we can all be proud of? If not, what are you waiting for? If yes, have you done enough?"

Abdullah led his Barisan Nasional coalition to a resounding victory in March's general election by thumping the opposition Islamic Party (PAS) in the race for federal parliament, and regaining control of one of two states ruled by PAS.

The ruling coalition further confirmed its popularity by winning a by-election on Saturday with an increased majority.

Despite high oil prices, strong economic growth has also brought cheers for Abdullah, who is also the finance minister.

The central bank said last week growth was likely to surpass official estimates of 6.0-6.5 percent this year after expanding 8.0 percent year-on-year in the June quarter, the highest quarterly growth in four years.