Malaysia's Prime Minister Abdullah Ahmad Badawi ended his visit to Australia Saturday after calling for a new approach to the global campaign against terrorism.

Speaking at his last public engagement here on Friday night, Abdullah said Islamic extremism would be weakened if the growth of poverty, anger and frustration in Muslim communities was halted.

Abdullah, on the first official visit to Australia by a Malaysian leader in 21 years, said this approach had been modestly successful in his country where reforms had been implemented to raise living standards in predominantly Muslim rural areas.

"We have demonstrated that we can roll back the Islamists, not by engaging in a holier-than-thou contest, but by addressing the root causes of anger and frustration," he said in a speech to the Asia Society of Australia.

Abdullah, in Australia to discuss trade and other issues with Prime Minister John Howard, said while many Islamic nations were becoming more open, some Western countries also needed to reassess their foreign policy agenda.

"Reforms in the Muslim world must be accompanied by visible and meaningful changes to the foreign policies of key Western countries," he said.

Long-standing differences not resolved

"The non-Muslim world, especially the West, must be prepared to discard their prejudices against Islam and be willing to engage in genuine dialogue.

"At the same time, Muslims too must be prepared to begin a process or reform and renewal in their respective Muslim countries."

Abdullah declined to name any Western countries but ahead of his visit the Malaysian leader had criticised Australia's foreign policy as too US-focussed.

Howard and Abdullah met in Canberra last week but failed to resolve long-standing differences over how to tackle terrorism in Southeast Asia.

The Malaysian leader has also questioned Howard's threat to take unilateral action against extremists' bases in the region.