Malaysia is willing to play a "bigger role" in resolving the bloody two-year insurgency in southern Thailand, Foreign Minister Syed Hamid Albar said today.

Syed Hamid also said unrest in the region, which borders Malaysia, would be on the agenda when new Thai Prime Minister Surayud Chulanont, who was installed after a bloodless coup last month, visited Malaysia Wednesday.

"If they think we can play a bigger role, of course Malaysia will be willing to do that," he told reporters.

"You must remember that Thailand is an independent and sovereign state. Before one can even talk about playing a role, we must see what the attitude of that country is."

After being sworn in on Oct 1, Surayud is now touring the region, and visited Laos and Cambodia at the weekend.

"This is a traditional visit whenever a new government in Southeast Asia takes over. It is to show that it is important to retain very good and strong bilateral relations in this interim period," Syed Hamid said.

"It is up to the two leaders to decide... if there are any new areas that we can contribute to peace and security," he added.

Thailand's new government announced plans for talks with two insurgent groups early next month, and rebel leaders reportedly said they would like to hold the talks in Malaysia.

Late last year, former Malaysian premier Dr Mahathir Mohamad brokered talks between Thai officials and Muslim groups in Langkawi to try to establish a ceasefire.

Malaysia shares a border with Thailand's troubled Muslim-majority south, where more than 1,500 people have been killed since violence erupted in January 2004.

The region was an independent, ethnic Malay sultanate until Thailand annexed it a century ago.