A leader of Malaysia's ruling party was accused of stirring up racial tensions Tuesday, by brandishing the Malay dagger to thunderous applause at the annual congress.

Last year's United Malays National Organisation (UMNO) assembly was overshadowed by the raising of the dagger, known as a kris, as well as incendiary speeches attacking the nation's ethnic Chinese and Indian communities.

Hishammuddin Hussein, chief of the party's influential youth wing, defied calls for restraint by again unsheathing the dagger and holding it aloft, in a gesture seen by other ethnic groups as aggressive and inflammatory.

"No one should fear... don't create an enemy that does not exist. Don't be afraid of the shadow," Hishamuddin said to loud applause from the 750 delegates.

"The dagger is described as a symbol of fighting. It looks like after 50 years of independence there are individuals who do not understand the culture of the country," he said in his speech.

UMNO is using the annual congress to gear up for elections expected to be held early next year.

Opposition leaders slammed Hishammuddin's actions, saying it was a political ploy to woo support from Muslim Malays who dominate the population of the multi-ethnic country.

"UMNO knows they cannot win Chinese and Indian votes. So they are leaning to secure Malay votes. It is nothing but a political gimmick," said Subki Yusof, secretary of the fundamentalist Pan Malaysian Islamic party.

"I don't think the unsheathing and brandishing of the dagger is part of Malay culture. We do not do it in our daily life or during any ceremonial functions," he told AFP.

Opposition leader Lim Kit Siang, chairman of the Chinese-based Democratic Action Party, said the gesture would "surely strain race ties in Malaysia."

"It is outrageous that he does it despite the criticisms. He is being insensitive and irresponsible," he said.