PUTRAJAYA (Malaysia) - MALAYSIA on Tuesday refused to rule out granting political asylum to ousted and convicted former Thai Prime Minister Thaksin Shinawatra, but said he is free to transit through the country.

Foreign Minister Rais Yatim said Thaksin - who is a wanted man in Thailand - has not approached Malaysian authorities to seek permission to come to Malaysia. But the government will have no problem if he wants to transit through Malaysia, Dr Rais told reporters.

'We have got nothing against Thaksin ... If Thaksin wants to pass through Kuala Lumpur I think it shouldn't damage anybody. But if he wants to stay here, that's a different thing. We will have to see the merits of his case,' he said.

Pressed further on whether Malaysia would consider granting or rejecting asylum, he said 'that we cannot say for certain because that matter doesn't come up'.

Thaksin had been living in exile in Britain since August to escape several charges including corruption. He was sentenced in absentia in October to two years in prison by a Thai court.

He was reportedly travelling in China when Britain revoked his visa Saturday, leaving him stranded outside his place of exile.

Thai media have reported that Thaksin may have been heading to Manila. Philippine authorities said he has not applied for asylum and would likely be turned down if he did.

Thaksin was ousted in a 2006 military coup for alleged corruption and abuse of power. He has said he fled from Thailand because he could not get a fair trial there, although the government is led by his allies.

He was convicted of violating a conflict-of-interest law by facilitating his wife's purchase of lucrative Bangkok real estate from a state agency in 2003, while he was prime minister. His wife was acquitted. -- AP

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