The government today lashed out at a growing perception that it is harbouring terrorists, saying it was not a base for the al-Qaeda network and blames Indonesians for inspiring Islamic militancy in the country.

Malaysia has been stung by reports that two of its citizens played major roles in bomb attacks in Indonesia, blamed on the al-Qaeda-linked Jemaah Islamiyah (JI) network.

Two other Malaysians linked to the al-Qaeda were also believed be in US custody at a secret location.

"We have been taking a lot of measures to make sure that the activities of these people will not create instability or a threat to our security," Deputy Prime Minister Abdullah Ahmad Badawi told reporters.

"But it does not mean that the existence of these people, who are operating not just in Malaysia but elsewhere, has made Malaysia a country where the al-Qaeda is basing its operations. Nothing of that sort."

Inspired by Indonesians

Abdullah, who is also home minister, said it was Indonesians staying in Malaysia who nurtured local Muslim militants and established terror groups in the country.

"I noticed that their activities have been very much inspired by the Indonesians who are here on permanent stay permits. They are the ones who started all this," he said.

Alleged JI chief Abu Bakar Bashir, who is on trial for treason in Jakarta, and JI operations chief Hambali ( left ), who was captured in Thailand last week and taken into US custody, lived in exile in Malaysia during the rule of ex-Indonesian dictator Suharto.

Abdullah said the Luqmanul Hakiem religious school in southern Johor state, founded by Indonesian cleric Bashir, has been closed down.

"We do not harbour terrorists... we are fighting terrorists, they must study our record. We have

been mounting our operations against them. We are doing as best as we can," he added.

Terror duo

On Tuesday, Indonesian police accused Malaysians Azahari Husin and Noordin Muhammad Top of involvement at a senior level in last year's Bali blast which killed 202 people and this month's attack on the Marriott Hotel in Jakarta which killed 12.

Azahari, a former university professor, was said to be the bomb-maker while Noordin was allegedly the overall "controller" of the Jakarta bombing.

On reports that Azahari was named as a possible successor to Hambali, Abdullah said this could be "just a matter of guess" but Malaysia was cooperating closely with Indonesia and other neighbours to eliminate the JI structure in the region.

A senior Malaysian security official told AFP yesterday that the two men were among the last four on a most-wanted list of nine issued last year, and their capture would wipe out the JI leadership in the country.

He named the other two as Zulkiifli Marzuki, describing him as a member of the Malaysian JI "think-tank", and Zulkifli Hir.

The five who have been captured are held either in Malaysia or Indonesia, he said.

More than 70 Islamic militants, many of them allegedly JI members, are already in detention in Malaysia. - AFP