Malaysia today indicated for the first time that it might soon conclude a free trade pact with the US, its key economic partner despite strong opposition.

"If the US continues to demonstrate flexibility as shown during the third round of negotiations (in Malaysia), I am confident a mutually beneficial agreement could be reached in the very near future," Rafidah Aziz, trade minister was quoted as saying by Bernama news agency.

The US has said it wants to conclude talks for an FTA with Malaysia by the end of the year, although Malaysia has previously said it will not be dictated to by Washington's deadline.

Rafidah, who is currently on a trade promotion tour of the US, said the US-Malaysia Free Trade Agreement (FTA) negotiations should be market driven.

"It will be more successful if we do away with the political objectives and the conclusion be based on the market-driven aspects," she said.

Rafidah, who maintains Malaysia will not sign pacts with any country if it involved sacrificing the interest of the majority ethnic Malays, reiterated her position saying Malaysia still had to pursue the affirmative programme.

"It is necessary for the country to pursue some of the social and economic objectives to achieve nation building in a multi-racial society," she said.

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

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