Prime Minister Abdullah Ahmad Badawi has denounced Indian Malaysian activists' claims they are mistreated, and accused them of stirring up racial conflict.

"I'm really angry, I rarely get angry but this blatant lie cannot be tolerated at all," Abdullah said late Saturday after an official function in Malacca, according to Bernama news agency.

The government was shaken by a mass rally a week ago that drew 30,000 people protesting alleged discrimination by the Malay majority, against ethnic Indians who make up eight percent of the population.

Abdullah blasted activists' claims the community is the victim of "ethnic cleansing" - made in a letter to the government of Britain which as colonial rulers brought Indians to the country as indentured labourers in the 1800s.

"Ethnic cleansing is like what happened in Bosnia when the Serbians killed and did everything to wipe out Bosnians from the country. But we didn't do such things here," he said.

"Surely what is being questioned has racial undertones aimed at disrupting the prevailing peace, harmony and well-being of our people."

Abdullah denied allegations that the government had marginalised Indians in favour of boosting the status of Malays.

"In our 50 years of independence, we never had any problems with the Indians," he said, according to Bernama .

"I've helped them, I've helped them in many ways. They want money to repair their temples, I help because we respect other religions and they are not our enemies, they have cooperated very well with us."

Meanwhile, Malacca Chief Minister Mohd Ali Rustam has urged the government to revoked the citizenship of Hindraf leaders.

"These people are betraying their own country," said Ali, who is Umno senior vice-president.

Ali added that he supported the use of the Internal Security Act, which allows detention without trial, against the organisers of the Hindraf rally.

International spotlight

The turmoil has brought the international spotlight on Malaysian race relations which have become tense in recent years, with the ethnic Chinese community also complaining of discrimination.

Indian Prime Minister Manmohan Singh last week said New Delhi was disturbed by reports that protesters at the rally were clubbed by baton-wielding police who also unleashed tear gas and water cannons.

In a response to the crackdown, the United States also pointedly backed the right to hold peaceful protests.

The rally was officially in support of a multi-trillion dollar lawsuit accusing Britain of being at the root of Indians' economic problems.

But it was more squarely aimed at the ruling Umno, which stands for Malay interests and has ruled the nation since independence a half-century ago.

While Malays control the political scene and the Chinese population is dominant in business, Indians complain they run a distant third in terms of wealth, education and opportunities.

SPECIAL REPORT: The Hindraf protest