KUALA LUMPUR: Malaysia on Sunday denied that it had been supplying arms to terrorists in the region.

The statement that Malaysia exported terrorists or arms was factually wrong and was made with mischievous intent, Malaysian Home Minister Hishammuddin Tun Hussein said at Putrajaya, the administration center of the Malaysian Federal Government.

Malaysia has a very good intelligence gathering system aimed at avoiding threats within the country, he told reporters at the "open house" event hosted by Malaysian Prime Minister Najib Tun Razak and his cabinet ministers to welcome the public to celebrate Hari Raya (Fast Breaking).

If there is any proof of Malaysia exporting terrorists or arming terrorists, Malaysia will take the necessary action, the minister said.

Malaysian Defense Minister Ahmad Zahid Hamidi on Sunday also denied that the country's armed forces had ever been involved in supplying arms to any party outside Malaysia, local media said.

According to him, Malaysia only owns slightly above 60 percent of the arms it actually needs and therefore the argument of it having excess weapons to sell to third parties is untenable.

Malaysia always keeps the process of weapon deals transparent and has never been involved in any case of weapons smuggling, he said.