Malaysia is to compensate poultry farmers if their livestock are hit by the deadly bird flu virus in a bid to ensure any outbreaks are quickly contained, reports said Friday.

Agriculture Minister Muhyiddin Yassin said the cabinet had decided to pay compensation so farmers would not be deterred from reporting outbreaks by fears they would lose their livelihood.

"Information is crucial in preventing an outbreak and we don't want them to keep any problems secret or it will be worse for the whole country," Muhyiddin was quoted as saying by the New Straits Times .

Malaysia had an outbreak of the H5N1 strain of avian influenza in 2004 in northern Kelantan state but stamped out the disease and has declared itself free of the virus.

The government paid RM250,000 (US$66,300) to 933 poultry breeders after more than 18,000 birds were culled and no limits would be set on compensation for future outbreaks, Muhyiddin said.

62 killed

Malaysia has created a multi-agency task force to deal with the situation and is drafting contingency plans in case of any outbreaks.

The government is also to stockpile the anti-viral drug Tamiflu and Health Minister Dr Chua Soi Lek said his ministry would ask the cabinet for RM500 million for the effort, the New Straits Times reported.

Bird flu has killed at least 62 people who had contact with infected birds in Cambodia, Indonesia, Thailand and Vietnam, and forced massive culls of affected poultry.

Experts fear if the H5N1 virus mutates and becomes transmissible among humans, it could spark a worldwide epidemic that could kill millions of people.