Prime Minister Abdullah Ahmad Badawi appealed for a landslide victory on the eve of Sunday's polls, saying a big mandate was crucial to attract investment and help the country withstand regional competition.

Campaigning in his northern home state of Penang, Abdullah said a decisive win by the ruling Barisan Nasional coalition against the Islamic party PAS would encourage foreign funds to pour into the country.

He noted that the economy beat the government's original target and grew 5.2 percent last year, while the stock market had soared past the psychological 900-point barrier to its highest level in nearly four years.

But the prime minister, who took over from veteran leader Mahathir Mohamad in October, said the bullish prospects for the economy hinged on a convincing mandate for the coalition in Sunday's elections.

"They (investors) are ready to bring in money to invest in the equity markets. Some RM30 billion is expected to come into the equity markets," Abdullah told supporters at last-minute campaign stops.

"So please take the economic signals. The signals say that if the (ruling party) comes back with a good mandate, the economy will be doing even better - take the cue from the economic sector."

'This is not a threat'

Without naming PAS, he warned: "If you are not going to give us a strong mandate, I don't know what is going to happen. This is not a threat. Why should I threaten? I am just stating a fact."

Analysts say the ruling BN must get more than a two-thirds majority to claim a decisive victory and Abdullah told a news conference later the coalition had "a good chance of retaining our two-thirds majority, based on the support we can see."

Investors, positioning for an expected ruling coalition victory, have sent the stock market soaring this week to a 46-month high.

"The expectations of a convincing victory have certainly played their part for the early run-up," said Mercury Securities senior analyst Victor Wan.

"Whether the (stock market) level can be cleared (convincingly) depends largely on the election outcome," he said.

Wong Chee Seng, an analyst with Singapore's DBS Bank, said a strong vote of confidence for Abdullah "should form a solid basis for better corporate earnings and profit margins."

More politics or stable government?

Abdullah said he had inherited a prosperous country from Mahathir and did not want the legacy wasted.

"I am like a son who has inherited his father's wealth. I must manage it well, I can't make it disappear. We want to achieve greater success in the future, we must be forward looking," he said.

"Ask yourself what do you want. Do you want more politics or do you want a stable, progressive government that can achieve success and is accepted by the business and investment community?"

Abdullah also pledged to reduce the cost of doing business in Malaysia amid tougher competition for the investment dollar.

Analysts say that with China sucking up most of the investments into Asia and India emerging as another favourite destination, smaller countries needed to innovate in order to remain competitive.

Neighbouring Singapore has slashed corporate and income taxes and is negotiating a web of free trade agreements across the world to sharpen its competitive edge.

Abdullah has promised to fight to root out corruption, and said he would require BN legislators to submit a report card to him every three months in a bid to improve the quality of government service. - AFP