Officials from Malaysia and Japan are meeting for two-days to hammer out "some sensitive issues" in an attempt to speed up their free trade talks, an official said today.

"It is related to the free trade agreement (FTA). It will deal with how to move ahead with the FTA and resolve some sensitive issues," an official familiar with the talks told AFP on condition of anonymity.

The officials are meeting behind closed doors in the new administative capital Putrajaya, south of Kuala Lumpur.

Earlier this month, Japan and Malaysia agreed to reach a basic agreement by the end of May but the two countries remained divided on the auto sector as Malaysia was reluctant to review its policy to protect its domestic industry.

They were also trying to narrow differences in such areas as auto parts, steel and investment and services.

The two governments, which started talks on an FTA in January last year, have so far worked out the framework of free trade rules in agricultural and marine products.

When Malaysian International Trade and Industry Minister Rafidah Aziz met her Japanese counterpart Shoichi Nakagawa here last month, she expressed hope the two countries would formally sign an FTA in December.

Prime Minister Abdullah Ahmad Badawi is due to visit Tokyo on May 25-26.