Authorities eager to reap the economic benefits from the upsurge in tourism from China must surely view the recent "ear-squat" episode as the last straw in a string of public relations gaffes involving Chinese tourists. The notorious incident was captured on a hazy amateur video, which showed a female Chinese national being forced by a Malaysian policewoman to do squats in the nude while holding her ears.

In July, about 344 Chinese tourists decided to stage a sit-in at First World Hotel at Genting Highlands because they felt demeaned by hotel staff who used sketches of pigs' heads to distinguish them from non-pork-eating Muslims.

In a bid to secure Malaysia's economic future, its authorities have had little choice but to embark on an almost frantic damage-control exercise to improve relations with the rising world superpower. Their most significant effort thus far has been the ongoing goodwill mission to three Chinese cities led by Home Affairs Minister Azmi Khalid. The minister is bidding to "clear any misconception that Chinese nationals were specifically targeted by the Malaysian authorities", The Star reported.

Deputy Tourism Minister Ahmad Zahid Hamidi, who joins Mr Azmi for the trip, has also promoted efforts to lure Chinese visitors to Malaysia during Chinese New Year. These include giving away hong baos with shopping vouchers and a contest with prizes totalling up to US$1 million ($1.69 million).

The somewhat positive reaction from Mr Wang Chungui, China's ambassador to Malaysia, who called for restraint from the international community when he first learnt of the "ear-squat" incident, indicated that Malaysia's bid to improve relations with China can succeed if they can accede to Beijing's demand for firm action.

But, if allowed to fester, deteriorating ties with China can possibly lead to a widespread growth of Chinese xenophobia - much like how Malaysian Malays boycotted Jews in the past. In a worst-case scenario, such sentiments can lead to a recurrence of the Chinese-Malay racial riots in Singapore and Malaysia during the 50s and 60s.

Some critics will read Malaysia's run-ins with Chinese tourists as contradicting Prime Minister Abdullah Badawi's well-packaged notion of Islam Hadhari (Islamic civilisation), which is centred on principles of openness, democracy and multiculturalism.

Malaysian leaders would do well to question the implementation of Islam Hadhari, especially since the country is the current chairman of the 56-nation Organization of the Islamic Conference. Malaysia is now engaged in discussions with other member countries to incorporate this novel theological concept into a proposed ten-year development plan for the global Muslim coalition.

Meanwhile, solving the Chinese conundrum can only be taking one step towards ensuring the viability of Malaysia's global standing. Its leaders must first look into easing strained relations with some of its counterparts in Association of South-east Asian Nations (Asean) before it can begin making headway on the global scene.

In Thailand, for example, tensions arose due to disagreements over the extradition of 131 Thai Muslims who fled to Malaysia in August. Relations seem to be improving after a recent meeting between Thai Prime Minister Thaksin Shinawatra and Malaysia's former premier, Dr Mahathir Mohamad, cleared the air.

However, the same degree of affability cannot be said to be true of Malaysia's current ties with Singapore. Dissenting voices within the Malaysian Cabinet have cited unresolved issues with Singapore - such as the proposed Johor bridge - as instances of how Malaysia's soft approach has put it in a disadvantaged position.

While Mr Abdullah's subtle approach is a marked departure from Dr Mahathir's rhetoric, not everyone in the Cabinet agrees that this makes Malaysia weak. In fact, some, like Deputy Foreign Minister Joseph Salang Gandum, assert that the country does not easily accede to the demands of others despite its mellowness.

With talk of Asean integration gaining currency, Malaysia needs to heed the calls of inclusive voices such as Mr Abdullah and Mr Joseph if it wishes to position itself as a viable global player. Allowing notions of parochialism to flourish can only erode the impressive political and economic progress that it has painstakingly made.

The writer is the managing editor of The Muslim Reader magazine, which is published in Singapore.