(AFP) Prime Minister Dr Mahathir Mohamad will hold talks with Burma's powerful leader Senior General Than Shwe during the latter's visit here for three days from September 25.

A senior government official told AFP that Than Shwe's visit is on the invitation of Mahathir, who visited Rangoon in January.

"Top of the agenda will probably be issues related to trade and investment," the official said on condition of anonymity.

He said local investors had expressed concern about investing in Burma over red tape, land lease and ownership, and taxation.

Than Shwe, on his third visit here, is keen to learn strategy in wooing foreign investments and related laws, he said.

Malaysia is ranked fourth among foreign investors in Burma.

Total investment stands at RM2.2 billion -- mostly in timber, hotel construction, tourism and trading.

The official said the paramount leader would also discuss Burma's political developments with Mahathir.

Defence technology

Describing ties between the countries as "warm and cordial", he said Burma had always considered this country "a close friend in ASEAN".

"They have always looked to Mahathir," he said.

Military ties between Kuala Lumpur and Rangoon entered a new phase after Burma last month agreed to send a technical team here to study the country's defence technology.

Defence Minister Najib Razak said Burma's military was keen to acquire local defence technology and in turn local businesses would tap the investment opportunities there.

The official said the government hoped for political reconciliation in Burma but opposed any form of pressure for change on the country.

"We want Burma to emerge out from its shell. We want to see the negative stigma on Rangoon removed. Our policy of engagement has shown some results," the official said.

"We want to see a stable and developed Burma. That is good for Southeast Asian countries," he added.