KUALA LUMPUR, Oct 15 (AFP) - Malaysian premier Najib Razak said Thursday that his ruling party, which represents majority Muslims, must revamp itself to appeal to all races in the multicultural nation.

Najib also urged United Malays National Organisation (UMNO) members at their annual talks to embrace reforms aimed at stamping out "money politics" and regaining public confidence a year after disastrous general elections.

"For us to survive, UMNO has no choice but to face the reality that it must reform," he said in his first speech to the general assembly as UMNO leader since coming to power in April.

Najib is attempting to woo back the support of ethnic Chinese and Indian minorities who swung to the opposition in the 2008 elections that saw the UMNO-led coalition dealt its worst results in half a century.

He told his party that it must be seen as safeguarding the interest of all races, not just Malays who make up 60 percent of the population and have dominated politics since independence in 1957.

"UMNO's relevance as a ruling party depends on how much it is able to capture the imagination of the Malays, but most importantly all Malaysians," he said. "UMNO cannot be regarded as a party that only champions a small group."

But against allegations that UMNO is responsible for rising "Islamisation" in Malaysia that has made minorities uneasy, he also defended the party, saying it was not "racist" or "crazy for power".

Najib also targeted a system of preferential treatment for Malays, which has been criticised as making Malaysia uncompetitive, saying they needed to accept the need to liberalise the economy in a challenging global environment.

The premier has been chipping away at the New Economic Policy (NEP), which was launched after 1969 racial riots in an effort to narrow the wealth gap between Malays and ethnic Chinese, who dominate the business sector.

Critics say the policy has failed and that its biggest beneficiaries have been Malay entrepreneurs who cash in on an array of perks including discounts on property purchases and specially allocated government projects.

"The economic challenges that await us are more difficult and demanding. The global economic landscape has changed. Our previous formulas may not work," said Najib.

"If over the past four decades we failed to achieve our (NEP) goals using the same strategy, isn't it time for us to think of a new way of achieving our dreams?" (AFP)