International concern over terrorism, which has already thawed chilly relations between Malaysia and the United States, is now soothing the Muslim country's prickly ties with Australia.

Malaysia, known both for its strident criticism of Western ways and for its alleged human rights abuses, will on Friday sign an anti-terror pact with Australia, similar to an agreement with Washington in May.

The main irritants with Washington have been Prime Minister Dr Mahathir Mohamad's allegedly dictatorial style of government and his uncompromising stand on the Middle East.

Australia has grudges involving everything from its bid to be "Asian", which Mahathir has always shunned, to his public scorn for its English accent.

Treatment of illegal immigrants has also been a thorn in the side of relations, with each country accusing the other of inhumane behaviour over the years, from Vietnamese boat people in Malaysia to Afghan refugees in Australia.

First signs of the thaw were noted in October last year when Australia attributed a rapprochement to golf diplomacy - a game between Malaysian Trade Minister Rafidah Aziz and her Australian counterpart Mark Vaile.

Golf course diplomacy

The two ministers met - again on the golf course - last weekend when Vaile was in Malaysia ahead of an Association of Southeast Asian Nations (Asean) meeting in Brunei.

A golfer in the party remarked to AFP that beneath the verbal sparring is two-way trade worth about RM30 billion a year, and a security agreement in the Malaysia-Australia joint defence programme.

Officials on both sides are reluctant to put their names to the suggestion that all is now cozy between the two countries, preferring anonymity as they describe the obvious change as "pragmatic".

Australian sources insist they have not dropped their concern over human rights - taking the same line as US Secretary of State Colin Powell during his visit here this week.

Powell said the United States was still concerned about Mahathir's former deputy Anwar Ibrahim, jailed for 15 years on sex and corruption charges he claims were trumped up to prevent a political challenge to Mahathir, who has been in power for 21 years.

Powell also said he had expressed concern about Malaysia's use of laws allowing indefinite detention without trial - but with most people locked up under those laws recently being alleged Islamic militants, the criticism was muted.

And as for slanging matches between Malaysia and Australia over the treatment of illegal immigrants, both countries appear to have quietly agreed to shut up as the other rids itself of migrants from poorer countries seeking a better life.

Australia has been pilloried for its treatment of asylum seekers, while in Malaysia an amnesty for illegal workers expired at midnight on Wednesday and offenders now face mandatory jail sentences and possible caning. — AFP