Conglomerate UEM World said it was in exploratory talks with Disney over building a theme park in Johor but the US entertainment giant denied it had any such plans.

Malaysia's government said on it had been in negotiations with Disney representatives on building Southeast Asia's first Disneyland theme park.

"At this stage it's very exploratory. For a project that size, various elements have to be in place," said Ahmad Pardas Senin, managing director of UEM World.

"In the process of pursuing that development, we do speak to various theme park operators in the world. That process will continue," he said.

"What they will decide we don't know. We have been initiating talks with various parties, not just them, various parties that have an operation that will be suitable for the theme park," he told a news conference.

Disney however later denied it was in any discussions over a possible theme park.

'It's never easy'

"We are constantly exploring opportunities around the world as we look to grow our parks and resorts business. At this time, however, there are no existing discussions in Malaysia and we currently have no plans for a Disney-branded resort development in that country," Lisa Haines, worldwide public affairs vice-president for Walt Disney Parks and Resorts, said in a statement.

Ahmad had brushed aside reports that the US entertainment giant had ruled out building a park in Malaysia, but admitted UEM World's chances were limited.

"It's never easy, but we keep trying. With such a big name such as that... you can try to attract them but whether or not they will be attracted is another issue." he said. "We will continue to pursue."

"If names like that do come here it would definitely be an international crowd-puller in terms of tourism. It would have a huge multiplier effect. It would help in tourism, it would help in employment, in creative industries."

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