"We are exploring all our options, because the southern corridor development to be a comprehensive and attractive region," he was quoted as saying by national Bernama news agency. "So this will include a theme park and other attractions." Effendi said the government hopes for an agreement with Disney, but it is also "discussing with several other parties to get the best option."

Malaysia officials are concerned about meeting the challenge Singapore poses to its tourism industry. Tourism is currently the country's second biggest foreign exchange earner, but some of this could be eroded once Singapore completes the two casino resorts currently underway, the report revealed.

If Malaysia does manage to sign up Disney it will be the second theme park the country has in Asia. Last September the company opened a new part in Hong Kong. There are also unconfirmed reports that Malaysian government officials have approached Oriental Land, the Japanese operator of Tokyo Disneyland, to run a similar park in Johor.