FOREIGN Minister Bob Carr says the government's Malaysian people-swap deal can still work if the southeast Asian nation decides not to sign the UN Refugee Convention.
The federal government wants to resurrect the Malaysian deal, but the coalition wants to limit offshore processing to countries that are signatories of the UN Refugee Convention, such as Nauru.
Senator Carr is in Malaysia this week and has discussed the deal with local officials.
He confirmed Australia was still committed to resettling 4000 refugees from Malaysia over four years under the arrangement.
The minister said it was "very silly" for the opposition to oppose the plan because of the refugee convention.
"Tony Abbott was suggesting engagement with other countries in Asia that hadn't signed the refugee convention," he told ABC television on Tuesday.
"As Malaysia sees it, they have two million illegal workers, they have 100,000 refugees, they're dealing with this and they can deal with it without signing the convention."
Senator Carr would not be drawn on whether the Australian government preferred Malaysia to sign the convention, saying it was a matter for Malaysia decide on.
"The Malaysians can do without some of the bad mouthing of their eminently good reputation that occurred when the matter was last debated (in Australia)," he said.
"Their sincerity on this can't be doubted."
Under the Malaysian deal, the government would send 800 asylum seekers to Malaysia in exchange for 4000 processed refugees coming to Australia.
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