KUALA LUMPUR (AFP) - - Malaysia's armed forces chief Thursday called for "stern action" against those inciting racial conflict in the multicultural country, after the government warned tensions were rising.

A senior member of the ruling party was suspended for three years on Wednesday for triggering a race row with an outburst against ethnic Chinese, calling them "squatters" and warning them not to seek political power.

General Abdul Aziz Zainal, the military chief who earlier this week warned that racial issues were a "major threat to the country", again called for a lid to be put on any troublemakers.

"I only voice my concern on this issue, stern action must be taken to prevent it from happening," he told a press conference.

"There is no country that wants to see itself in turmoil," he added.

Prime Minister Abdullah Ahmad Badawi has raised concern about the state of ethnic relations in Malaysia, where the population is dominated by Muslim Malays who live alongside large ethnic Chinese and Indian communities.

"The racial situation in our country looks like it is showing signs of strain and increasing tensions among races," he said as he announced the measures to punish errant ruling party member Ahmad Ismail.

"We for so long have been able to control the situation so that nothing untoward happens, but we can't allow a situation like this to continue... which could affect our peace and stability," he said.

Deputy police chief Ismail Omar also sounded a warning on Wednesday, saying that racially charged statements had triggered a dangerous rash of inflammatory messages on Internet blogs and SMS text messages.

"I am issuing a stern warning to all quarters to refrain from making statements on sensitive issues via the various media," he said, according to the state Bernama news agency.

Ahmad's comments had raised fears of a split in Abdullah's coalition of race-based parties, which includes ethnic Chinese parties that were infuriated by the diatribe.

"The patience of the Malays and Muslims has a limit. Do not push us to the wall, as when we turn back we will be forced to push the Chinese in the interests of our own survival," Ahmad said in a press conference Monday.

"The Chinese should not try to be like the Jews in America -- it is not enough they control the economy, now they want political control," he said.

Malays dominate politics in Malaysia, while ethnic Chinese are prominent in business. Stirring up conflict between the groups is a serious offence in a country which is still haunted by past racial violence.

The latest row erupted as opposition leader Anwar Ibrahim -- whose Keadilan party is the first pan-racial party in Malaysian political history -- attempts to woo the support of enough coalition lawmakers to topple the government.

In March elections the opposition dramatically increased the number of seats it holds, and Anwar this week said he is "on track" to sign up the 30 defectors he needs to seize power.

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