WASHINGTON - US PRESIDENT Barack Obama spoke by telephone with Malaysia's Prime Minister Najib Razakon on Friday, and discussed proliferation, North Korea and financial regulation, the White House said.

'They discussed the ongoing global economic crisis, and stressed the importance of growth and sound regulatory systems in both their economies,' the White House said in a statement.

'The president described US concerns over proliferation and discussed North Korea and Iran, stressing the importance of implementation of UN Security Council resolutions,' the statement said.

'They also discussed ways to contribute to reconstruction and stability in Afghanistan.'

The statement did not mention Malaysia's claim that Washington had meted out unfair treatment over its decision to relist the country on a human trafficking blacklist.

The annual 'Trafficking in Persons Report", released last week, said Malaysia was failing to comply with minimum standards to eliminate trafficking and 'is not making significant efforts to do so.' -- AFP