Kuching – Malaysia assured Jakarta on Thursday that it would not grant political asylum to people fleeing the restive Indonesian province of Aceh.

The United Nations High Commissioner for Refugees (UNHCR) voiced concern over Malaysia's stance after police detained almost 240 people, most of them from Aceh, outside its mission in Kuala Lumpur earlier this month.

"There will be no political asylum for people from Aceh. They are illegal immigrants and they will be put in detention," Prime Minister Mahathir Mohamad told journalists after meeting with Indonesian President Megawati Sukarnoputri.

Both leaders discussed issues ranging from trade to counter-terrorism during the one-day talks in Kuching, capital of the East Malaysian state of Sarawak on Borneo island.

Indonesia launched a fresh offensive on May 19 against rebels of the Free Aceh Movement, which has sought independence for the resource-rich province. The offensive has killed hundreds of people, mostly rebels.

Lowell Martin, UNHCR representative in Malaysia, told Reuters earlier this week the mission in Kuala Lumpur had suspended operations to process applications by asylum seekers and refugees because of continued detentions.

Malaysia is afraid of being swamped by illegal immigrants and is not a signatory to the UN Convention on Refugees. Earlier this year the government said Acehnese would not be given special treatment, and would be sent home if caught.