A MALAYSIAN court has ordered the shutdown of a chemical plant in which Mitsubishi Kasei Corp, Japan's leading chemicals manufacturer, has a 35 per cent stake. The plant was accused of dumping radioactive wastes near a village in the state of Perak.

The ruling evoked a strong response in Japan, and the government has denied allegations of relocating potentially hazardous industries in poorer countries. The Japanese government has also ordered an enquiry into the environmental policies of Japanese-owned companies overseas and issued a formal note of caution to the Mitsubishi Kasei Corp.