Prime Minister Dr Mahathir Mohamad has given guarded support to Indonesia's proposal to create an Asean Security Community (ASC) to combat terrorism.

The veteran Southeast Asian leader told AFP in an exclusive interview that the proposed ASC must however, exclude defence pacts and binding security arrangements for the 10-member bloc.

"If it is just to combat terrorism, yes, but security arrangement like a defence pact and all that, I don't think that is something that we would like to get involved in," Mahathir said.

"Because we have different ideas. Some people want to have some huge fleet guarding us, we believe in being independent."