Problem with Term::Readline with ssh

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I'm trying to use the example code from Term::Readline: http://perldoc.perl.org/Term/ReadLine.html

 use Term::ReadLine;
  my $term = Term::ReadLine->new('Simple Perl calc');
  my $prompt = "Enter your arithmetic expression: ";
  my $OUT = $term->OUT || \*STDOUT;
  while ( defined ($_ = $term->readline($prompt)) ) {
    my $res = eval($_);
    warn $@ if $@;
    print $OUT $res, "\n" unless $@;
    $term->addhistory($_) if /\S/;
  }

It works fine on local machine, but if I put the script on a remote server, then I log in the the server with ssh and execute the script, it does not recognize my up arrow anymore, it only show "^[[A" when I press up arrow. Could anyone give a hint how to fix/debug this? I'm using ubuntu 12.04.