Prime Minister Abdullah Ahmad Badawi also said fuel prices would not be raised, an apparent attempt to ensure he doesn't antagonise Malaysians further.

The government had earlier warned it may cut fuel subsidies after global oil prices shot past US$100 a barrel earlier this year.

Retail prices have been unchanged since February 2006.

'The result of the elections was a strong message that I have not moved fast enough in pushing through with the reforms that I promised to undertake. Point well made and point taken,' Mr Abdullah said when opening an investors' conference.

Mr Abdullah said he would review the implementation of economic plans to ensure they benefit the poor and promised new measures soon to help low-income households cope with rising inflation.

'In this second term as prime minister, I intend to implement a bold agenda for addressing the concerns of the people,' he said.

'Let there be no doubt that we are truly serious in our journey toward reform and renewal.'

The ruling National Front retained power in March 8 general elections but lost its traditional-two thirds parliamentary majority as well as control of five state legislatures.

Mr Abdullah said the government will set up a third credit rating agency and establish a market-making framework in the local stock exchange to boost market liquidity.

The government will offer incentives such as tax concessions and lower fees to woo financial institutions to act as market makers, he said but gave no details.

The stock exchange will also be consolidated into two boards from the current three boards to encourage more high-quality listings and allow smaller firms to come on board faster, he said.

To boost the efficiency and competitiveness of the bond market, Abdullah said the approval process for bond issues by local and foreign issuers will be streamlined to allow private sector faster access to capital.

'Today's announcements are yet another step in our continuing journey to better prepare Malaysia for global competition,' he said.

The Invest Malaysia conference was attended by some 600 policy makers as well as fund managers, analysts and institutional investors.

Despite widespread concerns about a US recession, Mr Abdullah said Malaysia's economy is resilient and underpinned by strong fundamentals after growing 6.3 per cent last year, from 5.9 per cent in 2006.

The government has projected economic growth this year at between 6 per cent and 6.5 per cent.

Mr Abdullah reiterated that plans for US$325 billion (S$450.4 billion) in public and private investment to create five economic zones in rural areas would proceed even though some of the states are under opposition rule.

But the government is reassessing some projects as costs of raw material such as steel had increased, he said.

'If there are good reasons for cancellation, we will. I am not saying we are definitely doing that but we will certainly have to reassess the projects,' he said. He didn't say which projects are being reviewed.

Some economists have warned that growth may be hit if development spending slows.

Fuel subsidies, which amounted to around 40 billion ringgit last year and likely to rise, will also pose a major economic burden to the government, they said. -- AP