The newly-elected parliament was expected to finalise a constitution that will allow political parties for the first time in this archipelago of 300,000 Sunni Muslims, before the end of the year, he said.

"I think within one year's time we should be able to complete the constitutional reform process... I am hoping that the majlis (parliament) will be able to complete their work within one year," the 67-year-old Gayoom said.

He said he himself was a "reformist" despite criticism of his iron-clad hold on power and argued that he had been "reforming" the country since he became president in 1978.

"Reform is making things better.... I consider myself a reformist because when I took office in 1978 it was so different. I began my reform program. it has been a continuing process for the past 26 years.

"Now I see that the time is right for more sweeping changes. That is why I have proposed a new package of reform in which I envisage a multi-party political system, as well as the office of the prime minister, a supreme court and also that the president should be elected directly by the people."

The present parliament does not have a premier and even the speaker is a nominee of the president.

Only 42 members of parliament are elected by the people while the president nominates eight members to the assembly which in turn votes for a president for a five year term. Gayoom is now on his sixth term.

Pro-democracy activists have been clamouring to change Gayoom despite him being credited with turning this once backward fishing community into South Asia's most prosperous nation per capita with a GDP of 2,400 dollars per person.