Malaysia said today that it would seek to resolve outstanding border and maritime issues with Indonesia at an annual meeting of the two countries' leaders later this week.

Foreign Minister Syed Hamid Albar said Malaysian Prime Minister Abdullah Ahmad Badawi and Indonesian President Susilo Bambang Yudhoyono would tackle the issues in two-day talks starting Thursday in Sumatra.

"The meeting between the prime minister and President Susilo will further strengthen co-operation and pave the way for the resolution of outstanding border and maritime issues," he was quoted as saying by the state Bernama news agency.

The two countries have clashed in the past over territorial disputes.

Bilateral relations hit a low in April last year when warships from the two countries brushed sides near the Karang Unarang reef east of Borneo island, an oil-rich area both lay claim to.

Concrete measures

The incident capped a tense period after Malaysia had granted in February an oil concession to Anglo-Dutch firm Shell in the region, which Jakarta said was not in territory controlled by Malaysia.

Syed Hamid said Abdullah wanted this week's talks to result in concrete measures to resolve outstanding bilateral issues, including border demarcation.

"Both countries will also strengthen cooperation in education and investment," he added.

Abdullah will be accompanied by 11 cabinet ministers and chief ministers from five Malaysian states.