KUALA LUMPUR - Malaysia's economy is expected to expand by at least four percent this year but a war in Iraq will derail growth, Prime Minister Mahathir Mohamad said in remarks published today.

Gross domestic product (GDP) grew by 4.2 percent last year, within the official forecast of between four and five percent.

The government projected GDP to grow between six to 6.5 percent this year but Mahathir, who is also finance minister, said growth in 2003 would be lower at four percent.

"We hope to achieve four percent, maybe more, but this is dependent o­n the world situation," he was quoted as saying by the