The 2001 September 11 attacks in the United States opened a chasm in relations between the West and the Islamic world, especially those promoting radical Islam.

In moderate Islamic nations like multi-religious Malaysia, Prime Minister Abdullah Badawi has steered a careful path to preserve social harmony among the ethnic minority groups. He is promoting what he has called civilisational Islam, or Islam Hadari.

Malaysia has a secular constitution, which guarantees all its citizens religious freedoms, under Article 11. Malays, however, have enjoyed race-based affirmative action, since race riots in 1969.

But recent years have seen new tensions arise, with court decisions blurring the jurisdiction of the civil courts and the Islamic or sharia courts. There are many cases where Malaysians fear that Islamic law is paramount under creeping Islamisation, undermining their constitutional protection.

While the constitution has withstood 50 years, non-Malays say creeping Islamisation is reducing them to second-class citizens.

Prime Minister Abdullah Badawi was in Australia attending the Asia Pacific Economic Cooperation Summit, fresh from celebrating Malaysia’s 50 years of independence. He spoke to Helen Vatsikopoulos.

Helen Vatsikopoulos: Well, Prime Minister Abdullah Badawi responds to the state of his nation shortly, but I began by asking him about the post-September 11 world. Prime Minister Abdullah Badawi, welcome.

Abdullah Badawi, Malaysian Prime Minister: Thank you.

Helen Vatsikopoulos: This week marks the sixth anniversary of the September 11 attacks on New York and Washington.

Now, since then, do you think the gap between the Islamic world and the West has widened, or is it closing?

” There are a lot of expressions of hope and expectation.”

Abdullah Badawi: To be frank, it's very hard to make an assessment, but there is one thing however that is happening now, there is a lot of calls for a dialogue, mostly non-Muslim dialogue, Muslim-Christian dialogue, east-west dialogue.

There are a lot of expressions of hope and expectation [for] the dialogue to happen to create a better understanding of the situation now.

I think it is important that we begin to talk. I have always valued engagement, it is better to engage and talk to people, so containment is no good.

Helen Vatsikopoulos: But at the same time this week, we've also had a video released from Osama bin Laden, where he has said that Iraq is the key theatre in al Qaeda's war on the West, and we've also heard from President George W. Bush and even John Howard that yes, that's right, it's Iraq, and we're going to be in there, and we're aiming to win.

So, where is that all leading us?

Abdullah Badawi: It leads us to nowhere, except we continue to be suffering a certain state of tension that is going to be very difficult. I know that Iraq is not an easy situation to deal with, but the Iraqis need to be united and not fighting one another, so they should be ready to takeover the reigns of government to govern their own country and decide on their future.

”The destiny of Iraq is in their hands.”

Whether, when the troops withdraw there will be a blood bath, or whether when the troops withdraw the Iraqis can get their act together and sort things out, the destiny of Iraq is in their hands.

Helen Vatsikopoulos: Do you think it's just Iraq that the focus is on, that the West is Iraq, that they are perceived to be occupying Iraq, that inflames tensions in the Muslim world, or really...

Abdullah Badawi: What it is worse is Palestine, that is the mother of the problem, if I can use the word.

Helen Vatsikopoulos: And the eyes have been taken away from it?

Abdullah Badawi: Yes, there are a lot of nasty things happening in that area, and certainly, this is yet another issue which has created a lot of disappointment and anger among Muslims, including the moderates. The handling of the issue of Palestine has not been...

Helen Vatsikopoulos: Has it been forgotten?

”I feel that there is no honest broker to handle this issue.”

Abdullah Badawi: It has not been forgotten, but I feel that there is no honest broker to handle this issue. There is a strong tendency to lean favourably towards Israel.

Helen Vatsikopoulos: So do you think that if the United States focused more on solving the problems around Palestine, that perhaps relations between the Islamic world and the West would start to improve?

Abdullah Badawi: I think so.

Helen Vatsikopoulos: Or have we gone beyond that?

Abdullah Badawi: There is a strong belief that if the United States wanted to really, as we all say, be a fair broker, they could achieve it. Israel has always been very faithful to some agreements that have been achieved before. They too had problems shifting goal posts.

Helen Vatsikopoulos: Prime Minister, I want to ask you about Malaysia now. Some people say it is assertiveness, others say it is creeping Islamisation. How would you rate the state of race relations in your country at the moment?

Abdullah Badawi: The fact that we didn't have problems means that we are well managed, but I do not certainly claim that there are no complaints or feelings of dissatisfaction on some things.

”It can easily be misinterpreted as favouring one race against another.”

But it has to be explained. New generations will come up, and then they will ask a lot of questions about what we call the social contract that was agreed upon by the founding fathers of Malaysia. They are not easily understood, even the new economic strategies are not easily understood, it can easily be misinterpreted as favouring one race against another, it could be interpreted as discriminatory, that sort of thing.

Helen Vatsikopoulos: Or state racism?

Abdullah Badawi: Yes, state racism, but it has to be explained. These policies are not Malay policies; they are national policies decided by the government of the day.

But a new economic policy, as policy, does not exist anymore, because of 1991, but some aspects of that, with regards to the restructuring of society, with regard to the eradication of poverty, it remains and exists in the subsequent policies.

Helen Vatsikopoulos: And that will remain, affirmative action will remain?

Abdullah Badawi: We have made certain announcements of policies which are liberalising this, and we are liberalising on the basis that Malays are beginning to be able to stand up on their own.

”Nobody is expecting this to be a policy forever.”

Nobody is expecting this to be a policy forever, the question is how fast, and that is a point of argument.

Helen Vatsikopoulos: Well as Malaysia celebrates 50 years of independence this year, economics aside, there are some concerns from non-Malays that they are beginning to feel that they are not protected by the Constitution by Article 11, that there [is] some religious tension. Some of the court decisions that have come out make them feel very insecure about their future.

Abdullah Badawi: Everybody is protected by law, and the Constitution. We have no exception.

But when there are disputes, with a Muslim and a non-Muslim, from the point of view with regard to matters that have to do with property, of the custody of their children, it is decided by both courts.

”When you decide on the affairs of men, you have to be fair. You have to be just.”

But one thing, however, there is a certain feeling of not being very comfortable with the Islamic court. The Koran has clearly stated without any ambiguity or nothing obscure about it, it is very clear, that when you decide on the affairs of men, you have to be fair. You have to be just. It is very emphatic.

Helen Vatsikopoulos: But what about the conduct of some UMNO politicians, for example, during the last UMNO general assembly there was some very inflammatory language that was being used.

Abdullah Badawi: Well inflammatory language exists everywhere. What is important is what is the response of the leadership to all this? They make some inflammatory speech, and we have to tell them off, we told him off, we told him that if he tried it again, he would hear very tough words from us, 'Stop this nonsense', I told him. I told my deputy that I would not tolerate this anymore, and told the Chairman, 'Don't allow for this'.

And how did I respond? You should read my speech. If I had failed in my concluding remarks, and if what I said was exactly the same, it would mean that the party would reject me. I would have to be lying.

Helen Vatsikopoulos: Because you have been promoting Islam Hadari, or civilisational Islam?

”If we have rules that are common to all of us, then we can stand together and be together.”

Abdullah Badawi: We are a nation that believes in God, Malaysia, and we talk about the importance of acquiring knowledge, that is fair for all, that no group will be alienated, no group will be left out, all groups within Malaysia, within our country, if we have rules that are common to all of us, then we can stand together and be together.

That is what Islam Hadari is all about. It's not a vision for war, it is not to confine, it is not a vision that is against progress.

Helen Vatsikopoulos: Prime Minister Badawi, thank you very much for your time.

Abdullah Badawi: Thank you.