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.

Intelligence reports

But when Mahathir expanded on his comments at a news conference Wednesday and was asked whether he was referring to neighbouring Singapore, he would only say: "That's your assumption, not mine," the New Straits Times reported.

The question was prompted by Mahathir saying: "We have heard that if there is to be war, their defence would be by preventing it from reaching their borders. Malaysia will be turned into their battlefield so that war will not reach their borders."

Relations with the small but wealthy island state at the foot of the Malaysian peninsular have been prickly since it became independent of the Malay Federation in 1965, and have recently reached a low ebb over a number of disputes.

Foreign Minister Syed Hamid Albar said in an interview published today that "it is not an easy relationship. We are on talking terms, but it is not good."

Defence Minister Najib, asked whether there were intelligence reports suggesting neighbouring countries planned a forward defence strategy, replied: "Yes, there must be because the prime minister has made that statement."

Asked whether Malaysia should therefore upgrade its defence capabilities, he pointed out that substantial new procurement programmes, which involve tanks, aircraft and submarines, were already in place.

Open secret

The executive director of the Malaysian Strategic Research Centre, Abdul Razak Baginda, told AFP : "Of course it's Singapore (that Mahathir was referring to), any defence analyst in this part of the world is aware of Singapore's forward defence strategy.

"It is an open secret that in the event of conflict, Singaporean forces would be deployed into (Malaysia's southern state of) Johor to fight the battle.

"Due to its seige mentality , it is not surprising that Singapore has such a strategy, as it is limited by land and space.

But, he added: "The outbreak of war is far away from the minds of the political leadership of the two countries." AFP