A Malaysian court on Thursday awarded a political activist 740,000 dollars for his wrongful 1998 arrest and assault in custody, in what his lawyers and rights groups hailed as a landmark ruling.

Amnesty International said the High Court verdict "confirms that torture and ill-treatment" occurs in Malaysia under draconian internal security laws that allow for indefinite detention without trial.

Attorneys for Abdul Malek Hussin said it was the first time that a Malaysian court had awarded significant compensation for illegal detention and abuse.

The court awarded him a total of 2.5 million ringgit -- 1.0 million ringgit for unlawful detention, 500,000 ringgit for assault while in custody and another 1.0 million ringgit in exemplary damages.

Abdul Malek was arrested under the Internal Security Act (ISA) on September 25, 1998, at the height of the "Reformasi" (Reforms) demonstrations following the sacking and arrest of Anwar Ibrahim, who was then deputy prime minister.

After addressing a Reformasi demonstration, he was detained for 57 days and he has said that during that time, he was beaten and punched by police until he lost consciousness.

"It is not the money that is important but that my complaints of unlawful detention and physical ill-treatment at the hands of the police have now been vindicated," Abdul Malek said, according to his lawyer Sivarasa Rasiah.

Sivarasa said the verdict was a wake-up call for the government.

"This decision should give fresh impetus to the government to set up the long-needed Independent Police Complaints and Misconduct Commission (IPCMC) to investigate such abuses and this has yet to happen," he told AFP.

Groups campaigning against the ISA also welcomed the move.

"This sends a message to the government that you cannot entertain such abuse and assault against individuals," Abolish ISA chairman Syed Ibrahim told AFP.

"It is good that exemplary damages were given as you really cannot justify the Internal Security Act. Any kind of detention without trial can be opened up to abuse," he added.

Amnesty International Malaysia called on the government to abolish the ISA, which it said was an "arbitrary law that creates a climate for torture and ill-treatment".

Malaysia is holding more than 100 people under the ISA, about 80 of them alleged Islamic militants.