Malaysia today said it was concerned high oil prices will hurt its developed-nation trading partners, although in the short term it will benefit as the value of its oil exports rises.

"It is a concern because the higher oil prices may affect the growth of the developed countries. We are a trading nation so it is a concern," Second Finance Minister Nor Mohamed Yakcop told reporters.

But Nor Mohamed said that in the short term, as a net exporter of oil Malaysia stood to gain from higher prices.

"We are also a net exporter and as oil prices go higher, income in terms of royalty and taxes becomes higher," he said on the sidelines of the Islamic Development Bank governors' meeting.

Oil for August delivery touched US$60 a barrel for a second day today on the New York Merchantile Exchange. Oil has risen 58 percent in a year and gained 21 percent in the past month.