Executive Director of the National Economic Action Council (NEAC), Datuk Mustapa Mohamed said the invasion of Iraq by the United States and its allies had posed to undermine the world economy.

Malaysia, which is dependent on external trade and foreign direct investment, was considering for other ways to minimize the impact, Mustapa said at the presentation of excellent awards to University Teknologi Mara (UiTM) students at its Machang campus on Saturday night.

"We need to consider what will happen in the two to three months after America's attack on Iraq...what is clear is America is getting more arrogant as the unchallenged superpower and this threatens world peace," he stated.

Mustapa said the war in Iraq would cause the United States to continue to commit cruelties on small countries which did not dance to its tune.

It was important for Muslims to unite to face such challenges, he added.

He said Malaysians should gird themselves to face the more challenging times ahead by strengthening unity and developing the country in all aspects.

"We are also feeling the heat of war in Iraq, but we are thankful that Malaysians are rational in facing this challenge, unlike the people in some other countries who have gone out of control with their protests," he said.

The peaceful situation in the country should be preserved to reassure investors that their safety is guaranteed, he said.

He also said, "Malaysia has the Internal Security Act to tackle any form of terrorism."

(Xinhua News Agency March 23, 2003)