By Raphael Tenthani BBC Blantyre reporter

The Asian community in Malawi has accused the government of racism over the country's controversial new land policy.

At a rowdy meeting in Blantyre with Lands Minister Thengo Maloya, Asian business people said the new land policy was discriminatory and a disincentive to investment.

If you convert freehold land... on the basis of nationality, you are being unfair

Rafiq Hajat Businessman

The new land policy bars foreigners from owning land in Malawi.

It says if foreign nationals want ownership of any land they should apply for Malawian citizenship within seven years, or work in partnership with Malawians.

Foreigners, especially Asians, have expressed disquiet over the new policy.

Some of them stand to lose ownership of land which they have inherited from over 100 years of occupation.

No compromise

Rafiq Hajat, who has been leading a campaign against the land policy, told the minister the new policy was unfair and was bound to scare away potential investors.

He warned that many businessmen would take their money out of Malawi for fear of punitive land costs.

"If you convert freehold land into leasehold on the basis of nationality, you are being unfair," he said.

If you are not satisfied with the laws of Malawi, why stay here?

Lands Minister Thengo Maloya

Mr Hajat said the Asian community had pleaded with the government to take on a constitutional lawyer to review the land policy because, he said, the new policy was in conflict with Malawi's Constitution.

But Minister Maloya was uncompromising.

He challenged any Asian who was not happy with the policy to leave Malawi.

"If you are not satisfied with the laws of Malawi, why stay here?" he said.

Mr Maloya described the Asian community as arrogant, saying they have been exploiting Malawians for a long time.

"If you are bent on exploiting Malawians in the name of investment, those days are over," he said.

"Your concerns are baseless and arrogant."

The minister said that as far as the government was concerned, the land policy would not be reviewed and implementation had already started.

'Untold repercussions'

He also took offence at being branded a racist, saying the statement would brew hatred between the Asian community and indigenous Malawians, which could be destructive.

But the Asians warned the minister that the policy would have untold repercussions on the country's economy.

They said many large companies were owned by foreigners in Malawi, and if they were scared away by the new policy, it would be Malawians who would suffer long term consequences as they lost their jobs.

Prominent Blantyre lawyer Krishna Savjan said foreigners would like the government to give them assurances that they would continue working without restrictions.

Otherwise they would be reluctant to extend their investments.

But Mr Maloya insisted the new land policy was fair as it gave foreigners many options, including naturalisation.