Malaysia is in talks with the Japanese operator of Tokyo Disneyland to bring the first Disney theme park to Southeast Asia, a report said yesterday.

Malaysian government officials and representatives from the government-linked conglomerate UEM World are negotiating with Oriental Land to bring the theme park to the southern state of Johor, The Edge financial weekly said.

"The discussions are progressing well. The Disney theme park may occupy about 2,000 acres (800 hectares) of Nusajaya," said the unnamed source.

Bandar Nusajaya is UEM's 23,000-acre township on the southwestern tip of Johor, the state that lies nearest to Singapore.

A Disney theme park would be a major boost for the tourism industry in Malaysia, which competes with Singapore to attract visitors.

Bigger than S'pore casinos

The Edge said the planned Disney theme park would be bigger than the two casino-based resorts being planned in Singapore after the city-state dropped a ban on gambling.

It said Disney is interested in Nusajaya as it would not compete with its other parks in Hong Kong and Tokyo and a new one planned in Shanghai.

Las Vegas Sands recently won a bid for Singapore's first casino licence, giving it the right to develop a multi-billion dollar gaming, entertainment and convention complex, edging out Malaysia's sole casino operator, Genting International and other contenders.