The government today said it saw no need to join the annual Cobra Gold military exercises with United States forces in Thailand, saying there were other ways of cooperating in the war on terrorism.

Defence Minister Najib Razak confirmed that Malaysia, which has observed the war games for the past five years, would remain an observer of this year's exercise in May despite an invitation from Thailand to become a participant.

The Philippines is due to take part for the first time, joining Thailand, the United States and Singapore, which became a full participant in 2000.

"There are some political and strategic implications, so that's why for the moment Malaysia is only participating as an observer," Najib told reporters.

"Our policy has always been that we don't subscribe to multilateral exercises."

A Thai military source has said terrorist-attack training could be incorporated in the drill this year, including activities such as the evacuation of civilians.