(AFP) The head of Burma's junta, Senior General Than Shwe, has promised to push ahead with democratic reforms which Malaysia said will enable isolated Rangoon to move into mainstream politics.

"The Burmese leader stressed the fact that they would like to go forward with the democratic process and they are discussing with democracy leader Aung San Suu Kyi," Malaysian Foreign Minister Syed Hamid Albar told a press conference.

Earlier, Prime Minister Mahathir Mohamad and Than Shwe met heldan hour-long meeting.

Syed Hamid said Malaysia, which is considered Burma's closest ally in the 10-member Association of Southeast Asian Nations (Asean), would like to stress that there should not be any pressure on Rangoon to speed up the talks.

"It is important that they will do it at their own pace," he said.

Syed Hamid said Mahathir congratulated Than Shwe for the recent domestic political developments - referring to the various initiatives between Burma's junta and Aung San Suu Kyi.

"I think every Asean member would like to see Burma move to mainstream and not subjected to problems related to the political scenario in the country," he said.

Landmark talks

Syed Hamid said Malaysia was watching Burma closely and was encouraged by the steps taken to free opposition figures and to hold a dialogue with them.

Democracy leader Aung San Suu Kyi has been under house arrest for a year, but has embarked on landmark talks with the military.

The political atmosphere in Rangoon has thawed since the talks began, leading to the release of nearly 200 opposition figures including senior members of her National League for Democracy (NLD).

The Malaysian official said UN envoy Razali Ismail was expected to make more frequent visits to Burma to "build up the momentum" to pave the way for democratic reforms.

During a four-day visit to Rangoon in August, the envoy met twice with Aung San Suu Kyi to discuss the progress of the talks.

Syed Hamid also said the two leaders touched on the terrorist attacks on the United States.

"Everybody appreciates terrorism is a problem. Both leaders see a need to ensure peace and stability," he said.

In the economic field, Syed Hamid said Burma has opened its doors to Malaysian investors in the oil and gas, timber, paper and pulp and fishing industry.

Negative impact

The two leaders agreed that Asean members would have to boost intra-regional trade to counter the negative impact of the US economy amid the Sept 11 tragedy.

After the bilateral talks, Malaysia and Burma signed memorandums of understanding on tourism and information exchange.

The first day of Than Shwe's visit will conclude with a dinner hosted by Mahathir. On Wednesday, he is due to tour the Multimedia Development Corporation and the world's tallest buildings - the Petronas Twin Towers.

On Thursday the general is scheduled to visit the island resort of Langkawi before leaving for home later in the day.

Malaysia is ranked fourth among foreign investors in Burma with investment totalling 587 million dollars, mostly in timber, hotel construction, tourism and trading.

This is Than Shwe's third visit to Malaysia and comes after an invitation from Prime Minister Mahathir Mohamad who visited Rangoon in January. Shwe is being accompanied by six senior ministers and the chief of military intelligence, Lieutenant-General Khin Nyunt.