KUALA LUMPUR: Australia could drop Malaysia altogether if experts on asylum-seekers recommend the idea after concerns have been risen over Malaysia's commitment to refugee issues. Australia is currently looking to ink people swap deals with Southeast Asian countries after more and more asylum-seekers attempt to enter the country. Prime Minister Julia Gillard last week established the panel, made up of former defence chief Angus Houston, former top diplomat Michael L'Estrange and refugee advocate Paris Aristotle, to assess all asylum policy options. It will look closely at the Malaysian deal and the opposition-preferred policies – reopening Nauru, reintroducing temporary protection visas and boat tow-backs – and report back to the government and parliament in August. “I wouldn't have done it if I wasn't in the business of taking the greatest regard possible for what they come out with,” she told ABC Television Sunday. Australia's opposition claims Malaysia is an “inhumane country" for the government in Canberra to even consider sending asylum-seekers back to, and they have rejected the country's top foreign affairs officials' comments on the topic. High commissioner Salman Ahmad told The Australian yesterday he was surprised the federal opposition was persisting with its negative characterisation of Malaysia. The Coalition says it remains opposed to the government's proposed people swap deal with Malaysia because Kuala Lumpur has not signed the UN refugee convention. Ahmad said he thought the matter had been resolved after a personal explanation to Tony Abbott and opposition frontbencher Joe Hockey in which he sought to explain his country's policies. “Given our small economy, I think we have done very well," he said. “Even though it's not legally binding on us to be treating refugees because we're not a signatory, we have done the best we can and they (Abbott and Hockey) know very well how we treat them when they come to our shores." Back in Kuala Lumpur, however, government officials have expressed their “shock" and “frustration" over the political figures in Australia referring to the country as “inhumane." A spokesman for the foreign affairs ministry told Bikyamasr.com on Saturday that they were currently looking into the matter and were “discussing the situation with our Australian government counterparts." The goal, the official said, who was not authorized to speak to the media, “is to develop an understanding of migrant rights, Malaysia's relationship with asylum-seekers and to develop a policy in line with Australia that will uphold human rights and the rights of refugees." It comes as Australia's Opposition lashed out at Malaysia over its treatment of refugees as talks with Kuala Lumpur continue over new refugee policies following the incident. Opposition treasury spokesman Joe Hockey told Sky News that “the reason why Malaysia is being used is because it is a very harsh and unforgiving environment for human beings." Opposition immigration spokesman Scott Morrison said he had no problem with Malaysia or its government, but the opposition would not agree to process asylum-seekers there because it had not signed the UN refugee convention. “Malaysia has the arrangements they have in place as a sovereign country dealing with the issues as they see them and they have every right to do that," he said. “My argument is not with Malaysia. My argument is with the government that wants to abolish offshore processing protections in the Migration Act."