Malaysia must improve its image to counter any perception that it has terror links, Prime Minister Abdullah Ahmad Badawi said today.

"Recently, I was told by a well-travelled individual that he was refused travel insurance to Malaysia by one of the biggest insurers in the United States, because there was a perceived security risk attributed to Islamic terrorist activity here," he said in a opening address at the Global Leadership Forum.

Abdullah said many people were not aware that Malaysia's 25 million people valued stability, peace, moderation and progress.

"Our knowledge of ourselves is clearly not shared by the world outside of Malaysia, at least not to the extent that we will like. This needs to change and we must re-examine our efforts in this area."

Abdullah said that since Malaysia with its 60 percent Malay Muslim majority was regarded as an Islamic country, it could create fears that it has terrorism links.

But "Malaysia has always been doing its best to showcase Islam as a religion that was progressive, as a religion that wants peace, as a religion that condemns terrorism, as a religion that was doing all it can to spread goodwill," he said.

"Extremism of any sort, whether it is ethnic-based or whether it is religion-based, will be totally rejected."

Alleged militants under detention

Malaysia now chairs the 57-member Organization of the Islamic Conference and Kuala Lumpur has been at pains to project itself as a moderate Muslim nation.

Abdullah has also been promoting an approach to the religion called Islam Hadhari or civilisational Islam.

The approach emphasises economic and scientific progress and Abdullah said it would ensure Malaysian Muslims did not deviate from progressive interpretations of Islam.

Government figures released in February show Malaysia is currently holding more than 80 suspected Islamic militants in detention.

Many are allegedly members of the al-Qaeda-linked Jemaah Islamiyah regional organisation responsible for a series of bombings in neighbouring Indonesia.