KUALA LUMPUR - MALAYSIA'S police are stepping up security in major hotels and shopping malls across the country in the wake of Friday's Indonesia bombings, the country's police chief said.

Musa Hassan, Inspector-General of police, said there was no cause for concern over the security situation in Malaysia, and that he had already issued orders for an immediate increase in security measures nationwide as a precaution.

'I call on them (hotels) to upgrade their security, and I have also instructed all state and district police chiefs nationwide to ensure that security in public places such as malls are enhanced,' said Mr Musa.

The bombings in Indonesia, Malaysia's neighbour, rattled the ringgit currency which lost a third of a percent to 3.578 per dollar, despite firmer local stocks. -- REUTERS