Umno president and Prime Minister Abdullah Ahmad Badawi touched on several points including the economy, corruption, press freedom and his stand on the position of Islam in his 90-minute presidential address in the 57th Umno general assembly.

Don't abuse press freedom

The truth is that I would rather see heated exchanges in the pages of the press than to see raging riots on the streets. We hope that the media does not get aught up with sensationalisng issues that can erode racial harmony, threaten public security or adversely impact national security.

Feedom does not mean one can be absolved from responsibility. Freedom has its limits. Freedom must be shaped in the context of a young nation that is made up of many religions, races, cultures and languages. We cannot and will not compromise when it comes to the unity and harmony of our multi-racial and multi-cultural society.

We will continue to be vigilant when it comes to national security and public safety. I would like to warn those who abuse this freedom that I will not for a moment hesitate to use the law against them.

Malays need to deal with meritocracy

The best long-term policy to improve our competitiveness is through a modern and dynamic education system. The way forward for Malaysia is not through offering cheap labour, but through an educated and skilled workforce. This is why we must continue to promote excellence.

While no race should be left behind in terms of educational attainment, we must promote meritocracy. We will ensure that assistance will be given to the best bumiputeras and those who are most in need.

We need not create uneasiness by saying meritocracy will be the end of the Malays because we will manage the process. We must make it our mission that one day we can achieve academic excellence.

Agriculture not a backward step

The development of the agriculture sector to become higher value added will give the country a competitive advantage. The move to develop the agriculture sector and agro-based industries is not a backward step.

The strength of high value-added agriculture is the basis for the economy of a developed nation.The development of a robust agriculture sector will also help us achieve the national socio-economic objective of reducing income disparities.

Agriculture is a rural activity, and the majority of the rural population is bumiputera. Developing agriculture and agro-based industries will increase the incomes and improve the quality of life for farmers and fishermen.

Why we're losing out on FDI

We need an economic transformation. This transformation cannot happen overnight. People want quick results and must be made to understand. They complain that FDI is slowing. They complain that the stock market is sluggish.

Apart from the increased competition that we failed to anticipate, FDI into Malaysia is not keeping pace with other countries because we are not open to mergers and acquisitions in this country. Some of our neighbours post impressive FDI numbers because they have allowed their companies to be bought by foreign investors.

From an economic point of view, there is nothing wrong with that because in an efficient market, capital will chase the best valued assets. But in Malaysia, we make certain policy decisions. We believe in selective mergers and acquisitions and maintain control of strategic assets because of national interest.

We can increase the FDI figures many times over at the stroke of a pen, but it will mean some loss of control. If I do that, ladies and gentlemen, you will be the first to condemn me. As long as Allah gives me guidance and strength, I will not seek gamble away our inheritance in search of hollow victories.

Bumi equity: Government not lying

In reality, bumiputera participation increased between 1970 and 2005. Nevertheless, a study that concluded 45% of equity in companies is bumiputera owned is grossly incorrect. Questioning the methodology used by the Economic Planning Unit is the same as accusing the government of lying. I must stress that the methodology used by the government is comprehensive and has consistently been employed since 1971.

Today, there are questions asked about what has been achieved in relation to the targets, in the time frame that has been allotted. Bumiputera are unhappy that targets have not been reached. Non-bumiputera are restless because they perceive that a time extension might mean they will not achieve equality.

Many seem to be trapped in a polemic revolving around equity targets and time frames that they forget the original philosophy and objectives of the NEP. The debate is now about process rather than about philosophy and objectives. The objectives of the NEP to eradicate poverty and restructure society in terms of distribution of opportunities, incomes and wealth in an equitable manner are larger than equity targets.

'Little Napoleons' in public service

There is still much that can be done to improve delivery. I have spoken about "Little Napoleons" in the public service. There are still complaints about these "Little Napoleons" that follow their own set of rules.

Even though there are relatively few of them, their actions not only delay the implementation of the Ninth Malaysia Plan, they also besmirch the good name of the public sector. Obstructions that delay government development plans or private investment will not be tolerated. We will therefore not allow any fiefdoms under the control of any kind of Napoleon.

Provide evidence of corruption

I pledge again that I will not let up in this fight against corruption and money politics. But let it be known that I cannot undertake to perform this heavy task on my own. You have the power to send a clear and resounding message. Be with me to clean our party of the scourge of money politics.

People say corruption is rampant. But the majority of these views are based on anecdotes. When we ask for proof, none is forthcoming. The process of arresting and prosecuting is not as easy as people say it is. The investigative process is painstaking and the process of proving corruption and getting witnesses is extremely difficult. There is no point in prosecuting in large numbers if we do not have enough evidence to convict them. Help me fight corruption by providing evidence.

Respect principle of gender equality

Women who have been given the opportunity have proven themselves and performed credibly and brought honour to the country. Malaysia is acknowledged as a progressive Islamic country which provides opportunities and holds women in high esteem in all sectors administration, commerce, education, enforcement, medicine, the judiciary and other fields.

The government is aware of the laws on women and is committed to review and streamline Syariah family law to ensure justice prevails. It will be the country's loss if we sideline or belittle the role of women.

Extreme and unreasonable racial demands

Of late, we see increased polemics on issues related to race and religion. And it has reached a level where it is now worrying.

(The social) contract was born out of a detailed examination and took into account very complex and sensitive considerations. It will be all too easy to undermine these sensitivities by making extreme and unreasonable demands and questioning the basic fundamentals of one community. If there are those who want to overhaul this agreement or continue disputing it, then we run the risk of adversely affecting our stability and harmony. And the consequences will be catastrophic.

We cannot allow this to happen. I will not allow it to happen at any cost. There is no party that is absolutely correct, there cannot be absolute freedom without constraint. I warn that no one should even attempt to test the government's resolve on this issue. If the need arises, the government will act swiftly and firmly in enforcing the existing laws to ensure that our peace, stability and prosperity is not jeopardised.

Don't hijack Islam Hadhari

Some quarters have misinterpreted Islam Hadhari as an excuse to become more conservative and more radical. Long accepted cultural practices that we have adhered to such as sending greetings or wishing another Malaysian in conjunction with their own festival - are now damned as taboo. Have we reached such a level of intolerance?Joint open houses are now condemned. When did we become ultra-conservative? This is not Islam Hadhari.

Those who say that this is what Islam Hadhari is are absolutely wrong. Their outlook threatens the unique tolerance for which Malaysian Muslims are renowned. We must not and cannot allow this. It will not make us more Islamic if we do not greet another person on the occasion of their celebration, just as my faith is not shaken when I go to a Deepavali or Christmas open house.

It is these same groups who make such proclamations that are conjuring imaginary threats aimed at inciting Muslims, hoping that they (Muslims) will become more intolerant of others. Their agenda is to see Malaysia torn apart, for us to fail as a multi-racial, multi-religious nation. This is not Islam.

For example, so many SMS have been sent out, claiming mass baptisms of Muslims and the purported formation of a Malay Christian Association.There are even those who claim without any proof - that hundreds of Malay Muslims have become apostates ( murtad ).

Let me be clear - Islam Hadhari is not a blank cheque to bring about conservative revivalism in this country. Neither is it a blank cheque for permissiveness. While I will protect Islam's position and the role of the shariah courts from being undermined, I will also ensure that no one tries to hijack Islam in Malaysia in order to breed intolerance and hatred.

Malaysia is a country of cooperation and dialogue. We have never been a place of conflict and distrust. I promise you that I will take stern action against any group - Muslim or non-Muslim - that seeks to undermine this delicate balance by questioning the status of Islam or by inciting people based on bogus allegations and fictitious threats.