Prime Minister Dr Mahathir Mohamad's warning that aggressive foreign powers could expect a "bloody nose" apparently aimed at both Australia and Singapore did not mean the country was on a war footing, the defence minister said today.

"We have our plans and we are not revealing what they are. If it reaches a stage where we need to launch a response, then we will know what to do, but we are not currently on a war footing," Najib Abdul Razak told a news conference.

The defence minister had been asked to clarify remarks made by Mahathir in which he accused unnamed foreign countries of planning "pre-emptive action" or a "forward defence" strategy using Malaysia as the battlefield.

"We promise that if anyone violates our freedom with pre-emptive action or forward defence, they will get what the (Westerner) calls a bloody nose," the 77-year-old leader said in his New Year message on Tuesday night.

The reference to pre-emptive strikes was immediately seen as directed at Australia, whose Prime Minister John Howard recently provoked a storm of criticism in Southeast Asia by saying he would attack foreign-based terrorists who posed a threat to Australian interests.