(AFP) Prime Minister Mahathir Mohamad marked the independence day by scolding his people in poetry, joking about Japan's economy and sermonising on Islam.

Shooting from the lip in vintage style, Mahathir:

- Berated ethnic-Malays for becoming "too laid back" because of his affirmative action programme, but denied that it was his fault.

- Said Japan adopted his "Look East" economic policy, but unfortunately saw the United States and got into serious difficulties.

- Accused Islamic militants of plotting to topple his 20-year-old government.

Mahathir, Asia's longest-serving elected leader, was speaking at a series of functions leading up to the 44th anniversary today of Malaysia's independence from Britain.

His poem, which has been set to music and will be sung by local star Safura in public tomorrow, says Malays failed to learn from 450 years of colonialism, though quite what the lessons were is lost in poetic fancy.

But he was more specific about the failings of Malays at a luncheon yesterday, when he was asked about his policy giving them and other indigenous peoples privileges over ethnic-Chinese and Indian citizens.

"They did not see anything that is threatening at all. As a result, some people seem to be too laid back and not willing to make any effort.

"It is not really my mistake, and I thought it is a good thing, but the response was not in the way we set it out," said Mahathir, who recently labelled Malay men "lazy".

At the same function, he said his "Look East" economic policy also seemed like a good idea at first, because it enabled Malaysia to develop its economy using the Japanese model.

"Of course today Japan is not doing well because it decided to Look East (as well): when it looked east it saw the United States.

"Now Japan is seriously trying to re-invent itself and try to produce the kind of structure that does not suit its culture."

Mahathir, a regular scourge of Western ways, said that while Malaysia continued to Look East it now did so to try to avoid repeating Japan's mistakes.

Taking off his flippant luncheon hat, the prime minister donned a well-worn political sniper's helmet for an address to the nation and took a few shots at the main opposition party.

He said Islamic extremists were using religion to ignite hatred of the government and setting up militant wings to seize power, despite the fact that Malaysia was already seen by many Muslims a model Islamic nation.

"Spurred by a desire to create an Islamic state of their dream", extremists "want to kill, terrorise and seek the assistance of foreign fanatics," he said.

Although he did not name PAS, it was the obvious target.

PAS wants to create an Islamic state in Malaysia, and has been linked by the government to a "Malaysian Mujahideen Group" blamed for a spate of crimes including the bombing of a church and an Indian temple.

Ten alleged members of the group, including seven members of PAS, have been held under the draconian Internal Security Act, which allows detention without trial.

PAS gained dramatically increased support in 1999 elections and accuses the government of labelling its members militant extremists to curb the party's appeal among ethnic Malays.

Malays, who are mostly Muslim, make up more than half of Malaysia's 23 million population, while ethnic Chinese account for 25 percent and Indians about seven percent.

Mahathir said his government had given all Malaysians the opportunity to prosper, adding: "Those who deny this fact are an ungrateful lot."