WASHINGTON, Feb 21: The US said on Saturday it had no indication to suggest that the Malaysian government was involved in nuclear proliferation.

Commenting on a report that a Sri Lankan businessman Buhary Syed Abu Tahir, now living in Malaysia, had helped Dr A.Q. Khan and others smuggle nuclear materials to Iran and Libya, the State Department said: "The entities that are suspected of involvement are private sector entities."

"We have no indication that the Malaysian government is involved ... the government of Malaysia has been working with us, closely and cooperatively," said the department's deputy spokesman Adam Ereli.

He said both the US and Malaysia recognized nuclear proliferation as "a threat to each of us and to the international community as whole."

He said cooperation between the US and Malaysia over the issue predated the current scandal. After learning about Tahir's involvement with Dr Khan's network, the US administration had discussed with Malaysia the need to "work together to act against the networks," he said.