Malaysia has agreed to set up an anti-terrorism centre in partnership with the United States, Foreign Minister Syed Hamid Albar announced after a cabinet meeting today.

It will be known as the Southeast Asia Centre for Counter-Terrorism and will focus on "capacity-building" and understanding the issues related to terrorism, he said.

Experts from around the world will serve as instructors at the centre, which will be open to all members of the Association of Southeast Asian Nations when it is launched some time next year.

"The centre does not involve operational matters or incorporate military activities," Syed Hamid said.

"We will cooperate with the US because the centre was initiated by the US."