Malaysia, already known as a maverick in international economic circles, has gone a risky step further by hurling racial insults at major investing nations as veteran Prime Minister Dr Mahathir Mohamad prepares to step down.

Not only did Mahathir last week publicly label Westerners as warmongering, greedy, sexual deviants, his trade minister said at the weekend she did not think his remarks would hurt the economy - because they were true and, in any case, Western businessmen based their decisions only on profits.

"Take China for example. China is condemned by the United States. But its private sector goes to China like ants scrambling for sugar," said Rafidah Aziz.

Mahathir also told a weekend news conference that his address to a ruling party assembly last week, in which he insulted key investors in Malaysia such as the United States and Britain, was unlikely to hurt the economy.

"I don't think so. Even if it does, it will only be for a short while."