A US-led attack o­n Iraq would hurt Malaysia's palm oil and timber exports by forcing freight and insurance charges to rise, a senior minister said today.

"We hope that there is no war. The US should not unilaterally declare war. We hope US and its alliance will rethink about it," Primary Industries Minister Lim Keng Yaik was quoted as saying by the Bernama news agency.

Malaysia key crude palm oil buyers are India, Pakistan, China and the European Union, which account for 70 percent of the country's exports.

Malaysia is the world largest palm oil producer, accounting for about half of global output. - AFP