KUALA LUMPUR: Malaysia is safe and stable, Prime Minister Datuk Seri Abdullah Ahmad Badawi said as he calmed jitters over the country's political outlook.

"This government is a stable government. Please believe that.

"The administration is moving, projects are being implemented.

"Please don't get overexcited about what is happening. There are a lot of rumours. Please don't believe them.

"Don't panic about what is happening," he said after chairing the first meeting of the Northern Corridor Economic Region board of directors yesterday.
Abdullah said there were no security issues or concerns in the country.

He dismissed rumours that an exercise being conducted by the police and army was a prelude to emergency rule.

"Please don't read anything into it. I don't think anyone should be worried. This is an exercise and should not be regarded as something else.

"Rumours here, rumours there. It is as if rumours are lording over us. I am not so wrong to say that Malaysians are very gullible."

Rumours about the shutdown at the Bursa Malaysia also circulated yesterday.

Despite the bourse having stated that a technical glitch had halted trading yesterday morning, a variety of tales had been spun on the market suspension.

Abdullah attended a Rulers' Conference meeting at Istana Negara in the morning, followed by office matters at his Putrajaya office and, finally, the NCER board meeting.

Asked about the drop in the stock exchange index, Abdullah said: "I don't see why this sale of shares should happen.

"In terms of security, we are safe and we have political stability. At the same time, I don't want people to say I am in a state of denial. Many things are cropping up but this is not the first time. It happens every time there is an Umno election."

He said the goings-on in Parliament were not a symptom of political instability. "There are parliamentary issues and it can get quite rowdy at times, but it does not indicate political instability."

Abdullah said demonstrations and rallies may have spooked investors.

"Of course, I don't want to make assumptions because they could affect market sentiments.

"However, I can say for sure that our peace and security are not at risk."