Malaysia will continue with its controversial plan to cut prices on computer software and compact discs in its war against piracy despite US criticism of the move, a senior minister said today.

"This mechanism in a way is very unique in Malaysia, but it works. So, what we are trying to do is to extend that mechanism to a sector which we feel is problematic," Muhyiddin Yassin, domestic trade and consumer affairs minister was quoted as saying by Bernama news agency.

Muhyiddin described the price-control mechanism as a "Malaysian way" of beating piracy in the country.

"Let's do it our way and let see what will happen after this is implemented. (Already) there has been a positive indication of our success. So, we want to sustain this success," he said.

Muhyiddin urged the US to support the plan.

"So, my request to the United States administration is to understand Malaysia's predicament and not to compare it on par with the problem in the US or Europe," he said.

Proposal could backfire

The United States had warned that Malaysia's proposal to control prices could backfire and prompt producers to shun the country.

Market forces will compel producers based in the United States, which owns 70 percent of disc copyrights, to shift to more lucrative markets, US Department of Commerce assistant secretary William H Lash III was quoted as saying by the Sun newspaper on Tuesday.

Muhyiddin was quoted last month as saying the cabinet had decided to place CDs, VCDs and DVDs as well as computer software under the Price Control Act so they could be sold at reasonable prices to discourage the purchase of pirated versions.

But Lash said price control measures would not have an impact on piracy.

"It will instead lessen the appetite of companies and send out the wrong message to the investment community, especially because it involves imposing price control on luxury items," he said. - AFP