The United States hopes to work with Malaysia to stop product piracy before it becomes an epidemic, a visiting US official said yesterday.

"An area we would like to work jointly is fighting piracy," US Assistant Secretary of Commerce William Lash said.

Lash, on a two-day visit to Malaysia, said "we want to find ways (to stop it) before it becomes epidemic" in the country.

He is to meet today with government prosecutors and will discuss piracy of health products with Health Minister Chua Soi Lek.

China and Russia are the world's biggest product pirates but in 2003, US companies lost US$240 million to Malaysian pirates, mainly in the music and entertainment industries, Lash said.

Piracy worldwide costs US companies billions of dollars in losses.

WTO blacklist feared

"Malaysia has done a commendable job to fight piracy but the pirates are very versatile, highly motivated, very well financed and well organised," he said, adding that they threaten the health of consumers.

The US is Malaysia's largest trading partner and investor.

In May, Malaysia launched a nationwide crackdown on companies using illegal or unlicenced software amid fears growing piracy could lead the country to be blacklisted by the World Trade Organisation.