Iraqi forces backed by a US-led coalition have taken 30 per cent of west Mosul from ISIS in an operation launched in October to drive the terror outfit out of its last major stronghold.
Malaysian Defense Minister Hishammuddin Hussein said the success of the Mosul operation would drive hundreds of ISIS terrorists and sympathisers from Southeast Asia back to their home countries.
"Daesh is a common foe that we need to face," Mr Hishammuddin told reporters, using an Arab acronym for ISIS, after meeting Australian Foreign Minister Julie Bishop in parliament.
"If the offensive in Mosul is successful, we will see a lot of hardened returnees and sympathisers to the region, especially in Malaysia, Australia, Indonesia, the Philippines and South Thailand."
He said Australia had also agreed to provide technological support and equipment in efforts to deal with the rising threat of ISIS in the region, particularly the Abu Sayyaf terrorist group that has pledged allegiance with ISIS.
Muslim-majority Malaysia arrested more than 250 people between 2013 and 2016 over suspected terror activities linked to ISIS.
On Monday, Malaysian police said they arrested seven people, including five Filipinos, for suspected links to ISIS.
Malaysia has been on high alert since armed gunmen launched multiple attacks in Jakarta, the capital of neighbouring Indonesia, in January 2016.
Reported by Joseph Sipalan and Edited by Nick Macfie
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)