Malaysia has arrested three members of a suicide bomb squad involved in a thwarted terrorist plot to attack Western embassies in Singapore, officials said today.

POLICE in Malaysia have arrested four suspected members of a south-east Asian Islamic militant group linked to al-Qaida and is the main suspect in the weekend bombing of a bar in Bali.

Malaysia’s central bank has warned local financial institutions to watch out for suspicious transactions following reports that terrorist suspect Osama bin Laden’s organisation operated an account in Malaysia.