He wanted leaders, especially those in the ruling Barisan Nasional, to tell him the facts about those issues without sugar-coating them.
He said Malaysia's success did not come easily despite many believing otherwise, New Straits Times reported.
'If you think that this is an excellent achievement, I thank you,' he said when opening the Gerakan national delegates' conference on Saturday.
'But I must stress that it hasn't been without problems. We still have problems today that we have to manage all the time.'
He said the country would not be as successful if racial and religious issues were not addressed.
'We do not want to pretend and say that everything is okay. We do not want to be in a state of denial. Tell the truth, even if it is painful.
'The Prime Minister must have the courage and readiness to listen even to the worst stories, whether it is related to the country or himself. Never allow yourself to sink in a hole of denial and feel that everything is alright.'
Datuk Seri Abdullah said that while the truth must be told, Malaysians should not react negatively whenever a religious or racial issue cropped up.
He criticised those who were trapped in the mindset of turning everything into a racial or religious issue.
'We respond readily when there is something that we perceive to be a racial issue. We respond quickly when someone we do not like brings these matters up. This makes the issue more complicated and harder to resolve.'