KUALA LUMPUR, Oct 14 (AFP) - Malaysia's majority Muslims should abandon their "siege mentality" and aggressive rhetoric that has alienated minority Chinese and Indians, the ruling party's youth leader said Wednesday.

The United Malays National Organisation (UMNO), which leads a multiracial coalition, is holding annual talks aimed at regaining public confidence, particularly among minorities who swung to the opposition in a 2008 election.

UMNO youth chief Khairy Jamaluddin told delegates that a change in mindset was required if Malays, who make up 60 percent of the population, want to continue to lead the nation.

"For too long, Malays and UMNO have been caught in a mind-set that is negative and overly defensive," he said in a speech.

"We feel as though we are constantly under siege, and all our efforts appear to be channeled towards protecting the Malay special position. I urge Malays, beginning with the youth, to get out of this siege mentality.

"We can continue with the chest-thumping rhetoric, warning other races never to challenge this or that... but, we must ask ourselves, is this what Malaysians -- Malays included -- really want from UMNO?"

Khairy was the first youth leader in several years not to wave the "keris", a traditional Malay dagger, at the UMNO congress. The gesture, linked with ultra-nationalist rhetoric, has been seen as highly ethnically divisive.

Prime Minister Najib Razak, who took over in April after his predecessor was forced to quit over a disastrous performance in the 2008 elections, also said this week that UMNO should be seen as the party of all Malaysians.

"Although UMNO is a party for Malays and Bumiputeras, it should be allowed to take charge of the interests of all people," he told state media. 'Bumiputera', or 'son of the soil', is a term for indigenous Malaysians.

However, Najib stopped short of saying that UMNO membership would be opened to non-Malays. Khairy also made it clear that UMNO would continue to advance the cause of Malays.

"A change to this new path does not mean we forego the Malay agenda... However, we must pursue these things based on two principles: justice and compassion, especially when dealing with other races," Khairy said.

"Our national agenda that is grounded not in the narrow concept of Malay dominance, but on the concept of Malay leadership -- magnanimous as well as both just and compassionate."

Malays have dominated politics in Malaysia since independence in 1957. The Chinese community controls much of the economy, while Indians complain they run a distant third in terms of wealth, education and employment. (AFP)