Malaysia will not ink trade pacts with any country, including the United states, if it involved sacrificing the interest of the Malays.

"Only the Malaysian government has the right to determine the policies, whether to accept or reject the proposals and this is the basis of any of our negotiations," trade minister Rafidah Aziz told delegates on the final day of the ruling Umno gathering.

"No one has the right, even the US, to determine the outcome of the negotiations and the agreements of the FTA (free trade agreement)," she added.

Rafidah, who heads Umno's women's wing, said Malaysia will not entertain any request that would "affect and erode" the existing economic policies in the country.

Malaysia last month concluded its third round of free-trade talks with the US in which both parties expressed confidence of resolving the sensitive issue of government procurement.

Gov't contracts biggest hurdle

Malaysian government procurement, in which lucrative billion dollar contracts are awarded to the country's majority ethnic Malays as part of its affirmative plan, is seen as the biggest political hurdle in the talks.

Delegates had cautioned Malaysia's trade negotiations with the US and other countries and warned that proper research had to be undertaken.

Among the major concerns were that the FTA would result in Malaysia having to liberate its procurement which they feared, would erode economic opportunities for the ethnic Malays.

The US is Malaysia's largest trading partner and foreign investor with bilateral trade worth more than US$44 billion in 2005.

Washington hopes to fast-track the negotiations with its 10th largest trading partner and pass the free-trade agreement well before June next year, when Congress will regain the right to amend any trade pact.

The next round of talks will be held in the US in December.

Malaysia is also currently in trade negotiations with Pakistan, Australia and New Zealand.