Prime Minister Abdullah Ahmad Badawi has vetoed a proposal to merge the 14 parties in the ruling coalition, which supporters had said would transform Malaysia's race-based politics.

Political parties in Malaysia are based mainly on racial lines, and the component parties in the ruling Barisan Nasional represent Malay Muslims as well as Malaysia's ethnic Chinese and Indians minorities.

Critics say that the structure, conceived when Malaysia was formed 50 years ago after the end of the British colonial era, is outdated and responsible for heightening racial tensions in the country.

However, Abdullah insisted the system ensured proper representation for all the races and that it would stay in place.

"I do not say that it is impossible but right now, it is not practical," he was quoted as saying by The New Straits Times on Monday.

The premier said that under a unified system, factions from different ethnic groups could emerge and promote their own candidates.

"The current approach is good as it allows all races to voice out their concerns, with problems being jointly addressed by the component parties," he told the state news agency Bernama .

A small kacang

Gerakan Youth Chief Mah Siew Keong said at the party's youth conference last week that all the coalition members should merge into one party to enhance national unity.

Another coalition member MIC disagreed with the call for a consolidation.

"If the parties join together, the minority communities will become a small kacang (bean) in a curry," the party's president Samy Vellu told Bernama .

The Malay-dominated Umno leads the coalition, which has ruled Malaysia since independence a half century ago.

Religious and racial divisions are an increasingly serious problem in Malaysia. Abdullah said over the weekend that the tensions have brought Malaysia to the "brink of disaster" in the past and continue to hamper its growth.