DILI - Prime Minister Dr Mahathir Mohamad arrived in East Timor late yesterday leading a high-level delegation of ministers and business executives.

Prime Minister Mari Alkatiri ( right ) and Foreign Minister Jose Ramos-Horta ( centre ) welcomed Mahathir and his wife at Dili international airport.

"I hope East Timor can have good cooperation with Malaysia and together we can develop East Timor," said the Malaysian leader, who steps down on Oct 31 after 22 years in power.

Alkatiri said Malaysia had pledged assistance for East Timor's fledgling army in addition to business opportunities.

Key partner

His office said in a statement that the visit was aimed at strengthening bilateral relations and to discuss technical cooperation and investment opportunities.

"Today, Malaysia is one of our key partners in the region," Alkatiri said in the statement.

Mahathir is the first prime minister to visit East Timor since the country's independence from Indonesia in May 2002.

He arrived from Indonesia, where earlier Wednesday he received an award from the Southeast Asian Federation of Engineering Organisations. - AFP