The present bilateral relations between Malaysia and the United States is the 'best we ever had', said Prime Minister Abdullah Ahmad Badawi today.

He said Malaysia enjoys good relations with the Bush administration and that both countries have co-operated in many areas including in the economic field.

"People think we're always at loggerheads with the US...we're not," Bernama quoted him as saying during a dialogue at the Second East Asia Congress in Kuala Lumpur.

However, Abdullah said Malaysia has the right to voice its concern whenever necessary including on political issues.

He added that Malaysia also enjoyed good relations with Japan which had helped the country in its 'Look East' policy.

"We also have good relations with Australia," said the premier, who took over the leadership reigns from Dr Mahathir Mohamad last year.

Rocky relationship

During his 22-year tenure, Mahathir had a rocky relationship with the US and other Western nations, namely Australia, due to his strong stance and scathing remarks about certain issues.

Days before his retirement, the veteran politician once again ruffled feathers at the Organisation of Islamic Conference (OIC) summit in Kuala Lumpur with a speech perceived to be laden with anti-Semitic comments.

In another development, Foreign Affairs Minister Syed Hamid Albar leaves for Washington today for talks with US Secretary of State Colin Powell, on the Palestine-Israeli issue and the Middle East situation.

He will also visit London for similar talks with British Foreign Secretary Jack Straw.

Syed Hamid said he would convey the views of the Islamic countries on ways of resolving the Palestine-Israeli conflict.

"Peace in Palestine is still far away unless there is earnest political will. We will continue to encourage the United States to play an active role as we now believe the US has the capacity to bring Israel to the negotiating table," he said.