Malaysia is planning to impose mandatory jail sentences on peddlers of pirated video discs in a crackdown on a huge industry which markets the latest Hollywood movies at a fraction of the price of legitimate versions.

"What we want is the most severe jail term," Consumer Affairs Minister Shafie Apdal was quoted as saying by the New Straits Times Tuesday.

Like many Asian countries, Malaysia is awash in pirated discs, where the latest releases are readily sold even before their Hollywood premiere, sometimes for as little as one US dollar.

Previous blitzes against dealers have led to the seizure of millions of discs, but the sellers usually pop back up within days.

Under current laws people convicted of dealing in pirated VCDs or DVDs can be fined up to RM20,000 (US$5,200) per disc or jailed for five years, but sentences are usually much lower.

Shafie said penalties meted out were too "soft", particularly as dealers could easily pay the fines from their profits.

Piracy a problem

Malaysia is also fighting rampant piracy of computer software amid fears the country could be blacklisted by the World Trade Organization.

Shafie has warned in the past that piracy could hit Malaysia's aim of becoming a regional hi-tech hub.

"When piracy becomes difficult to control, Malaysia will be blacklisted by the World Trade Organization. That may hinder the government's efforts to develop the nation to be IT-savvy through the Multimedia Super Corridor," he said.

Stretching about 50 kilometres (30 miles) south of Kuala Lumpur to the new international airport, the "corridor" is a hi-tech enclave launched in 1996.