The government has urged an international insurance body to remove the Malacca Straits from a list of waterways deemed dangerous, saying ships are safe from terror attacks and piracy is contained.

Malaysia, Indonesia and Singapore were working closely to ensure security in the 960-kilometre long passage, used by 50,000 ships a year that carry one-third of world trade, Transport Minister Chan Kong Choy told AFP.

"There is no threat of terror in the Malacca Straits," he said. "And the threat of piracy is contained. The waterway is safe for ships."

Chan urged insurance companies not to impose security premiums on vessels plying the busy route, saying: "I don't think it is fair to impose additional premiums. I hope the Malacca Straits is withdrawn from the list."

The International Maritime Bureau (IMB) has listed the straits, and the waters around Indonesia, as among the world's worst for piracy, and some regional governments believe ships could be targeted by terrorists.

Last year the Malacca Straits recorded 38 pirate attacks, second only to Indonesian waters, which saw 94 attacks, the IMB said.

The Lloyd's Market Association's Joint War Committee in July added the straits to a list of 20 areas worldwide - alongside Iraq, Lebanon and Nigeria - that it deemed posed security threats to shipping.

The LMA is an insurance body that advises members of Lloyd's of London.

Incurring additional cost

As a result, some underwriters may impose an additional premium of 0.01 percent on ships plying the strait, the Malaysian Shipowners' Association's secretary-general Captain Hasnan Anwar told AFP.

"This is an additional cost burden for shipowners for no reason," he said, pointing out that the extra charge on insuring a 2-million-dollar ship, not counting its cargo, would be 2,000 dollars.

"And not only that - it gives an impression to the world that the Malacca Straits is not safe."

He added: "There has not been any terrorist attacks in the Malacca Straits or any evidence of a possible al-Qaeda attack in the straits."

Noel Choong, head of the IMB's Piracy Reporting Centre, agreed there was no evidence of pirate-terrorist links and said: "The pirates are only looking for financial gains, as shown by recent pirate attacks."

Malaysia is "serious and committed to ensure maritime security", he said, pointing to an operation last week in which police commandos boarded a hijacked cargo ship following a 17-hour chase through the straits.

To combat the recent increase in pirate attacks, Malaysia has said it will deploy police on tugboats and barges plying the waterway.

Malaysia has, however, rejected suggestions that the United States or other foreign navies be allowed to help patrol the straits.