Negotiations on a free trade agreement between Australia and Malaysia will top the agenda at a ministerial meeting starting in Kuala Lumpur Thursday, Australian Trade Minister Mark Vaile said.

Vaile and his Malaysian counterpart Rafidah Aziz will co-chair the two-day Australia-Malaysia joint trade committee meeting, he said in a statement.

"Negotiations for a Free Trade Agreement between Australia and Malaysia, launched in April this year, will be a key feature of the trade talks," Vaile said.

"The meeting will provide a timely opportunity to reiterate the importance of a comprehensive and liberalising agreement that delivers real benefits to the business communities of both countries."

Australian Prime Minister John Howard and Malaysian Prime Minister Abdullah Ahmad Badawi agreed to launch negotiations on a Free Trade Agreement during Badawi's visit to Canberra in April.

Annual bilateral trade between the countries amounts to some 10 billion dollars (US$7.5 billion) and Malaysia is Australia's ninth largest trade partner.

Australia exports raw cane sugar, copper, milk and cream, wheat and coal to Malaysia.

A third round of Australia-Malaysia negotiations is scheduled to be held in Australia in November with hopes for a comprehensive agreement by mid-2006.