Japanese Prime Minister Shinzo Abe held talks with his Malaysian counterpart today aimed at deepening economic ties and ensuring security in the piracy-hit Malacca Strait, an official said.

Abe arrived with his wife Akie, business delegates and senior government officials late Thursday for his first official visit to Malaysia, a nation his grandfather Nobusuke Kishi visited on its independence 50 years ago.

After a formal welcome, Abe was ushered behind closed doors Friday for talks with Prime Minister Abdullah Ahmad Badawi.

The official, travelling with the Japanese leader, also said that there would be talks on "the fight against terrorism," including in the vital Malacca Strait sea lane.

After talks with Abdullah, the leaders issued a joint statement pledging to promote "further cooperation for human resources development and closer economic ties".

Pirate attacks

A Japanese foreign ministry official said earlier that the leaders would discuss "the fight against terrorism" and regional security, including unrest in the southern Philippines and the vital Malacca Strait sea lane.

Sporadic pirate attacks in the strait have sparked concern that the waterway could be a target for terrorism, with Malaysian police in June warning of a "real and possible" threat.

Abe raised the topic during the talks, the statement said.

Hiro Katsumata, a research fellow at the S Rajaratnam School of International Studies in Singapore, said Tokyo was keen to establish strong maritime security ties with Indonesia and Malaysia, as China and Japan used the same sea lane to import oil from the Middle East.

"For both of them it is a lifeline," he said. "He chose (to visit) these two countries for the same reason he chose India - it's all based on his concern about the rise of China."

Malaysia, he said, would be keen to further the economic and technical assistance that Japan provides, particularly in the automobile industry.

Green energy

In the joint statement, Abdullah said that Malaysia would like to see more Japanese involvement in developing the north and south of the country.

The two leaders also pledged to work together to battle climate change, sharing knowledge on the energy and environment.

"It is important from the aspect of mitigating greenhouse gas emissions and conserving bio-diversity to promote sustainable forest management in Malaysia," the statement said.

On North Korea, Abe and Abdullah urged the communist state to continue towards denuclearisation, while Malaysia "expressed support" for Japan's bid to seek a permanent seat on the UN Security Council.

Green energy is also on the table, the official said, with Japan hoping to work with Malaysia to produce biodiesel from palm oil.

Business delegates - including top officials from Toyota, Canon, Honda and Mitsubishi - will be keen to discuss the oil and gas industry and developing a metropolitan transport system here.

Abe is on the last leg of a three-nation tour. He has visited Indonesia and India, and will return to Tokyo Saturday morning.