Prime Minister Dr Mahathir Mohamad defended his democratic record and predicted strong economic growth in an upbeat final parliamentary appearance today on the eve of retirement.

Facing opposition questioning for the last time after 22 years in power, Mahathir warned that too much freedom could lead to anarchy in Malaysia's multiracial society and made a strong call for national unity.

"As I retire from the nation's highest elected office, I call upon every Malaysian to rise to the occasion to face the challenges as they emerge and shoulder the responsibilites of citizenship," he said.

"If we do this, there is no reason why we cannot continue to be successful and make this county a model for the world to emulate."

Groups of schoolchildren crowded the public gallery and Mahathir was praised lavishly by some MPs, but the session was free of the tears and emotion which have marked a series of farewells, with normal parliamentary banter the order of the day.

Mahathir presented a mid-term review of the 8th Malaysia Plan, which ends in 2005, predicting real GDP growth at an average of six percent per year, which he said would put the country on track to realising its target of becoming a developed nation by 2020.

Be careful of anarchy

Before that, however, Asia's longest-serving elected leader faced a question and answer session in which opposition MPs probed his commitment to democracy.

He warned that too much freedom could lead to anarchy as he defended his democratic record today during his last appearance in parliament ahead of retirement.

Under questioning by opposition MPs, Mahathir said controls such as the detention without trial of terrorism suspects and the banning of communists from elections were essential to maintain democracy.

The prime minister, who retires tomorrow after 22 years in power, said that while the government believed in free speech, it also had to ensure that racial sentiments in Malaysia's multicultural society were not inflamed.

"If an individual or a small group tried to incite a (race) riot they are actually rejecting democracy and the right of the majority.

"That is why actions that seem undemocratic towards the individual or the minority need to be taken to protect real democracy," he said.

"Anarchy can take place because of an obsession with democratic freedoms. The belief that if democracy is implemented then everything will be well has no basis, especially if democracy is imposed immediately."

Tyranny of the majority

Mahathir said it had taken Western countries nearly 200 years to reach their current level of liberal democracy, but they were still not free of problems such as political corruption and the manipulation of power.

They had also "linked individual and minority freedoms to democracy, until they forget the rights of the majority."

Harking back to one of his familiar complaints about what he sees as Western decadence, he said some countries "are too free, until everything being done is accepted as a right. The practice of homosexuality is accepted as a right and same sex marriage is legitimised."

When a member of the opposition party PAS suggested that Malaysia in fact practised the "tyranny of the majority" and was simply afraid of losing power, Mahathir pointed to PAS's presence in parliament as a sign that the opposition "enjoy many priviliges."

He said his Umno, the lynchpin of the ruling coalition, was not afraid. "We win with a huge majority every time."

Mahathir's chosen successor, Deputy Prime Minister Abdullah Ahmad Badawi, will face an election within a year, with a key element being the struggle between Umno and PAS for the votes of the Muslim majority.

Abdullah is to be sworn-in by King Tuanku Syed Sirajuddin at 3.00pm tomorrow. - AFP