Indian Defence Minister AK Antony, who is on an official visit to Kuala Lumpur, did not raise the Hindraf issue at his meetings with Malaysian leaders, said Foreign Minister Syed Hamid Albar.

According to Syed Hamid, Antony's visit - part of India's campaign to cement relations with Southeast Asian allies - did not touch on the contentious issue of a crackdown on ethnic Indian activists here.

"India wants to broaden ties and on the political side, there is no problem," he told reporters, despite Indian premier Manmohan Singh voicing concern over heavy-handed treatment of ethnic Indian protesters.

"(Antony) ( left ) did not raise the issue of ethnic Indians in Malaysia. They understand the situation better," Syed Hamid said.

Malaysia's ethnic Indians, who make up eight percent of the population, held unprecedented protests in November to complain about discrimination by the government.

Syed Hamid said that Indian companies were also keen to play a greater role in Malaysia and that last year two-way trade reached US$8 billion.

He added that the two nations' leaders were keen to complete a fledgling free-trade agreement, which is due to begin being negotiated this month, as soon as possible.

"Both the ministers hoped that this understanding will act as an important catalyst toward expanded cooperation between the two countries in the field of defence," the Indian embassy said in a statement referring to the airforce training of Malaysian pilots.

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Antony said after talks with Malaysian Defence Minister Najib Razak that they also agreed to hold joint military exercises and strengthen efforts to combat regional terrorism.

Malaysia said it is also looking at having India help train its naval personnel to operate its two new French submarines.

Antony, who is on a three-day visit to Malaysia, said that India and Malaysia had a shared interest in countering terrorism and the spread of weapons of mass destruction, and in protecting maritime traffic.

In recent years India and Malaysia have developed a strong bilateral relationship encompassing trade, education, diplomacy and defence.