(AFP) Prime Minister Mahathir Mohamad demanded obedience and an end to corruption from his ruling party as it wound up a three-day annual meeting today.

"We must be loyal to the (party) president and we must obey him, then all will be safe," Mahathir told some 2,000 delegates from his United Malays National Organisation (Umno).

Mahathir, who is Umno president, has earlier admitted the party could lose its 43-year hold on power at the next elections unless it cleans up its act.

"If we want to ensure our party wins, don't only love the president, obey him," he told delegates in a 90-minute closing speech which won a standing ovation.

Members should not question his choice of election candidates even if they are from another party in the ruling Barisan Nasional coalition, he said.

Umno is the dominant party in the coalition, whose 13 parties cooperate closely during elections.

Party squabbles

Squabbles over candidates aided the opposition during the 1999 polls when Umno lost 22 seats. The main beneficiary was the opposition Parti Islam SeMalaysia (PAS).

The next elections must be held by 2004 but can be called any time.

Mahathir, 75, marks 20 years in power next month but has indicated during the party meeting that he is in no hurry to step down.

Yesterday he again singled out Deputy Premier Abdullah Ahmad Badawi as his successor. He told members they should respect the office of party president, not the individual.

"If we are disciplined and we listen to the party president...not me, I am not important, one day Pak Lah will be president ... God willing, we will succeed."

Pak Lah is Abdullah's nickname.

Mahathir, who has railed for years against "money politics" in Umno, again told the party to stamp out graft.

"If the perception is that Umno is led by corrupt leaders, then people outside Umno will not support us," he said.

"We cannot win with votes from 2.9 million members, we also need other people's support. That's why we must prove to them that we are a clean party, that we move solely to uphold the religion, race and country."

More upbeat note

Mahathir struck a more upbeat note than during his opening address on Thursday.

In that speech he castigated Malays for laziness, greed, ingratitude towards Umno and squandering opportunies under a 30-year affirmative action programme, which aims to narrow the wealth gap with the minority Chinese.

Mahathir said the speech was a "last-minute inspiration ... many may not understand it."

"My view is that the Malays are on par with the other races. But what caused us to be left behind... is because we do not put in enough effort..." he said.

Malays could succeed but there was no short cut.

"Chinese are clever not because they have better brains. They are clever because they study ... we can also do it."

Mahathir lashed out at the opposition Islamic party PAS, accusing it of poisoning children's minds at kindergarten level and discouraging them from studying secular subjects.

"PAS betrays the Islamic world," he said.

Mahathir hailed the achievements of national carmaker Proton and state energy firm Petronas. One day, he said, Malays would "be able to stand tall."

"PAS is a betrayer, a liar to the Malays. We (Umno) must show to the Malays what they can do if they work hard...I ask you all again to be disciplined. Without discipline we cannot win."