Mahathir accuses foreign powers of bid to recolonise Malaysia
"Such recolonisation attempts are ongoing ... not through military deployment or invasion like that staged by the Portuguese," he said.
"It is now done through the use of economic power to wrest control over our country.
"They will make use of Malaysians as their tools through the various organisations that get their aid to weaken the Malaysian government," he added.
Mahathir, who sees unregulated globalisation as akin to recolonisation, said foreign powers would employ all available means to derail the country's economic and political growth since independence in 1957.
"We have seen governments of several countries toppled through the doing of foreign powers ... at times the change in government did bring good but there were those that did not all benefit the nations involved," the Bernama news agency quoted him as saying in the southern city of Malacca.
"Instead only anarchy prevailed after that, leaving no room at all for reconstruction."
Malaysians should be wary against letting such a fate befall their country, he added.
The United Malays National Organisation (UMNO) would "defend Malaysia's independence and build the country so that, while other nations tumble, Malaysia stands strong as an independent country."
UMNO has lost much support among ethnic Malays since the sacking and jailing of Mahathir's former deputy Anwar Ibrahim.
Mahathir, who came to power in 1981 and is Asia's longest-serving elected leader, said the party would ensure a smooth leadership transition but made no reference to his own plans.
"The current leaders may be rather too old to be at the helm and will have to make way to the credible and efficient ones among the younger generation to carry on the UMNO struggle," the 75-year-old premier and party president said.
Mahathir has said this will be his last term in office but has given no hint of when he will step down. A general election must be held by November 2004.