BANGKOK - Malaysian Premier Dr Mahathir Mohamad has dished out insults and stirred controversy for decades but will leave an enduring economic legacy when he steps down this month, an Australian minister said Saturday.

"I visited Malaysia in 1982... and when I think about Malaysia and how it's changed and how it's the same, it's remarkable," Australian Foreign Minister Alexander Downer told reporters at the Asia-Pacific Economic Cooperation (APEC) meeting in the Thai capital.

"When I was there... in 1982 at the official banquet that night he launched a stinging attack on Australia," he said, quipping in French that the more things change, the more they stay the same.

"As the years have gone on he has become increasingly controversial."

Recognition

But Downer, who said he was breaking with precedent by discussing the provocative Malaysian leader after Australia's many run-ins with his acid tongue, recognised his economic achievements.

"I think Dr Mahathir in all of his years as the prime minister of Malaysia has done a very good job with the Malaysian economy," he said.

"When you look at modern Malaysia and you compare it to the Malaysia of when he first became the prime minister, it's remarkable what has been achieved over those years and I think it's important to understand that."

Mahathir hit the headlines again this week when he told a meeting of the Organisation of the Islamic Conference (OIC) that Jews "ruled the world" and that Muslims could exploit what he termed their increasing arrogance.

"The Europeans killed six million Jews out of 12 million. But today the Jews rule this world by proxy. They get others to fight and die for them," said 77-year-old Mahathir who is due to retire on October 31.

"1.3 billion Muslims cannot be defeated by a few million Jews."

Misinterpreted

Downer said he had raised the comments during a bilateral meeting he initiated with Malaysia's acting foreign minister Michael Leo Toyad and was told Mahathir's comments were taken out of context.

"The minister said he thought Dr Mahathir's remarks had been misinterpreted and that it's important that the whole of the speech is read in context and that we understood the audience he was addressing," he said.

"I only know what he said and I appreciate that they are now saying that they were misconstrued or misunderstood and they didn't really mean it."

On Friday, reacting to a statement by US President George W Bush who hailed Australia as America's "sheriff" in Asia, Mahathir warned Australia against taking on that role with Malaysia.

"I can assure Australia that if it acts as a sheriff in this country, it will be treated as a terrorist and dealt with as a terrorist," he said in a news conference at the end of a meeting of Islamic nations here.

Downer declined to comment on that remark. - AFP