KUALA LUMPUR (Jan 31): Malaysia called the peace deal for Israel and Palestine proposed by US President Donald Trump, which he touted as the “deal of the century”, unacceptable and maintained its support for the two-State solution.

"Malaysia finds the proposal utterly unacceptable. Malaysia believes the Palestinians have every right to reject it,” said the Prime Minister's Office (PMO) in a statement today.

The PMO added that Palestine, as an aggrieved party that was subject to prolonged occupation by Israel, was never directly involved or consulted in the formulation of the proposal.

“The proposal is heavily one-sided, seeking to reward Israel as the occupier at the expense of occupied Palestine and her people. The proposal is clearly unfair to the Palestinians and will only perpetuate the injustices they have long endured.

"Malaysia stands by its position that the creation of an independent State of Palestine through the two-State solution, based on the pre-1967 borders, with East Jerusalem as the capital of Palestine, is the only viable solution to the Palestine-Israel conflict," it said.

The PMO added that Malaysia will continue to support “concrete and honest efforts to find a just and lasting solution to the Israeli-Palestinian conflict based on the international law and relevant United Nations resolutions through negotiations involving the parties concerned”.

Trump announced the proposal for Israeli-Palestinian peace at the White House on Jan 28.

According to Reuters, the plan involves Israel stopping new settlement activities for four years, a four-year timeline for Palestinians to agree to a security arrangement with Israel, halt attacks by the Islamist militant group Hamas and set up governing institutions in order to establish a Palestinian State.

The capital of this new State would be in Abu Dis, a West Bank village just east of the municipal borders of Jerusalem.

It is cut off from the city by eight-metre high concrete security walls and checkpoints erected by the Israelis.

Palestinians have slammed the deal as the “slap of the century”,  rejecting any proposal that does not include a Palestinian capital in all of East Jerusalem, which includes the walled Old City and other holy sites for Christians, Jews and Muslims.