The Malaysian prime minister, Mr Mahathir Mohamad, said yesterday that Malaysia could not expect foreign help in restoring the economy and must rely on itself.

In a recorded speech broadcast on television and radio to mark National Day, the premier said key factors in economic restoration are political and industrial stability.

"We cannot expect any help at all from foreigners. We must ourselves work to restore our country's economy and defend its sovereignty and independence.

"The issue that we must first and foremost ensure is maintenance of racial harmony and political stability," he said. He praised workers and the trade unions for not resorting to industrial action during these difficult times.

The Malaysian economy sank into recession for the first time in 13 years when gross domestic product (GDP) shrank 6.8 per cent in the second quarter after a 2.8 per cent contraction in the first quarter.