Malaysia sees threat of terror attacks in Malacca St

KUALA LUMPUR, June 12 (Reuters) - Malaysia's police chief warned on Tuesday of "real and possible" threats of terror attacks in the busy Malacca Strait which he said could hurt regional economies and harm world trade if they materialised.

Musa Hassan told an International Maritime Bureau conference in Malaysia's capital that one worrying scenario would be if suicide bombers were to hijack a gas tanker sailing in the strait.

"Another threat which is real and possible that is lurking in the Strait is maritime terrorism," he said. "There are still concerns for future attacks especially from terrorist groups that could affect the economy of the region."

He identified no specific threats made by individuals or groups but said the police and the navy from the three countries lining the strait -- Malaysia, Indonesia and Singapore -- must ensure that one of the world's busiest sealanes was kept open and safe.

Musa's remarks echoed concerns among authorities and experts that terrorists may attack shipping, or use ships as floating bombs, in the Malacca Strait, which carries some 40 percent of the world's trade, including 80 percent of the energy supplies of Japan and China.

More than 60,000 merchant ships ply the waterway every year.

The strait, only about three miles wide at its narrowest point, has seen a sharp drop of piracy cases following increased patrolling by the three states.

Only one case of piracy was reported on the Malaysian side of the strait so far this year, against 11 for the whole of 2006, Malaysia's deputy internal security minister Johari Baharum said.

Indonesia is installing 10 U.S.-supplied radars on its side of the strait to help beef up security, Rear Admiral Agus Suhartono, a commander of the Indonesian navy, told reporters.

Maritime officials said the countries should remain vigilant.

"There is no room for complacency," said P. Mukundan, a director of the London-based International Maritime Bureau, adding that pirates remained active in the region.

"Today's high risk areas are Somalia and Nigeria, each with its own brand of hijacking and abduction of crew for ransom."

In the latest incident last week, Somali hijackers seized a Danish cargo ship and its five Danish crew.