Iranian President Mahmoud Ahmadinejad called on Islamic countries to come together and establish independent political, economic, and cultural organisations.
Ahmadinejad said that Islamic countries "through cooperation should provide new and better ways of governance."
The failures of capitalistic and materialistic western world necessitates it, he added.
He was speaking at a meeting with visiting Malaysian Foreign Minister Syed Hamid Albar here on Thursday.
Pointing to the plentiful resources and tremendous potential of Islamic nations, president said the advancement of any Islamic country is a step forward for the entire Islamic world.
Iran and Malaysia are two of the most advanced Islamic countries, he said adding that Iran would strengthen its ties with Malaysia.
The Malaysian foreign minister said Iran provided a great role-model for other Islamic nations to emulate.