Japan and Malaysia would seek to reach a basic outline for a free trade agreement (FTA) next month, a Japanese official said on Friday.

The plan was agreed to in a meeting between Shoichi Nakagawa, the Japanese minister of economy, trade and industry, and visiting Malaysian International Trade and Industry Minister Rafidah Aziz, the official said.

The two ministers shared the view that the two governments would strive to reach a basic accord on free trade by late May when Malaysian Prime Minister Abdullah Ahmad Badawi visits Tokyo May 25-26, the official said.

They agreed to hold talks at the level of vice ministers here on May 9-10 to accelerate the FTA talks, the official added.

Signing in December?

Rafidah, who was visiting Tokyo to attend a Malaysian investment seminar, said she hopes that the two countries will formally sign an FTA in December.

Japan already has a free trade agreement with Singapore, which was the first country in a new push to seek trade pacts. Japan's second free trade deal went into force this month with Mexico, seen as a gateway for the US market.

Japan has also reached a draft agreement with the Philippines on a bilateral free trade deal, which would allow Filipino nurses and careworkers to work in Japan. Negotiations are also under way with Thailand.