(AFP) - Malaysia may abolish its race-based quota system for public university places to avoid a 'brain drain' of ethnic Chinese and Indians, Prime Minister Dr Mahathir Mohamad said today.

The system attracted controversy this year after hundreds of Chinese and Indians were denied entry to the universities even though more than 7,000 places are vacant.

Public universities reserve a 55 percent quota for bumiputras - Malays and other indigenous races - 35 percent for Chinese and 10 percent for Indians.

Places are vacant because not enough qualified Malays have applied.

Mahathir, quoted by Bernama news agency, said bumiputras had been given the widest opportunities in education.

"If they don't show any interest, then the opportunities should be given to others."

The country would face a 'brain drain' if education for non-bumiputras was restricted.

"We will face a problem because the intelligent non-bumiputra Malaysians would be wooed by other countries that were interested in their capability."

Mahathir said it was up to the people to decide.

"If they feel that the government is implementing a bad policy, imposing the quota... then the government can abolish it."

Both government and opposition supporters have expressed concern about this year's quota.

Regardless of race

More than 500 Chinese students who scored top exam marks are among those who failed to gain admission.

Deputy Premier Abdullah Ahmad Badawi said last week that universities would take in as many as possible of the top students regardless of racial quotas.

Lim Kit Siang, chairperson of the opposition Democratic Action Party, said last week that keeping the 7,168 university places unfilled would be a "gross injustice" to other races.

The educational quotas are part of a 30-year-old affirmative action programme. Malays also get economic and other privileges to help them narrow the wealth gap with the Chinese minority.