Malaysia has hailed a decision by influential insurers to drop a war-risk rating for the Malacca Strait, and credited increased security efforts in the strategic waterway.

Foreign Minister Syed Hamid Albar said Monday's move by the London insurance market to de-list the Malacca Strait as a dangerous waterway was welcome, and due to action taken by Malaysia, Indonesia and Singapore.

"Malacca Strait is a busy strait. It's a very important channel for international trade so we are all very happy with the announcement," Syed Hamid told reporters.

A history of piracy and kidnapping of seafarers has prompted Malaysia, Indonesia and Singapore, which border the waterway, to launch aggressive joint sea and "eye in the skies" air patrols to thwart attacks on vessels.

"We undertook to improve (security), at least in order for people to have a better perception of what is happening in the straits. So the joint patrol has paid off. Eye in the Skies have paid off. I think this is a welcome move," he said.

The Joint War Committee (JWC), comprising underwriters from insurer Lloyd's and company markets, decided in June last year to add the strait to a list of 20 areas worldwide - alongside Iraq and Lebanon - that it deemed security threats to shipping.

Malaysia lobbied strenuously against the move, arguing it would affect economies along the strait by whipping up security fears and forcing higher insurance premiums on shipping companies.

Significant improvement

Some 62,621 vessels passed through the waterway in 2005, and Syed Hamid said the littoral states were mulling charging user states, to share the cost of maintaining safety and security.

"We are discussing this quietly. After all, they are the ones who utilise the straits in a huge manner," he said.

The JWC said in a statement released to AFP Tuesday that it "recognised back in January that there had been a significant improvement in the area in terms of security."

Citing security efforts by the littoral states and an independent security report, the committee said it was "now of the opinion that the evidence has shown that not only has the situation improved within the area, but the measures are long term."

It said it would monitor the strait "and will respond accordingly if the situation subsequently deteriorates."