Parts of the Malaysian peninsula, including the capital, were shrouded in thick haze caused by fires in neighbouring Indonesia, an official said today.

Air quality levels in the Klang Valley, which includes Kuala Lumpur and surrounding areas, were "unhealthy" and visibility had been cut by more than half, the Environment Department's air division head Che Asmah Ibrahim told AFP .

"The pollution is caused mainly by open burning on the Indonesian island of Sumatra," said Che Asmah.

There were 250 "hot spots", or burning areas, on Sumatra on Monday, compared to 84 on Sunday, she said.

Pollution carried on the south-westerly monsoon winds from Sumatra could remain over parts of the country for the next two to three days if the air remained dry, she said.

In 1997 and 1998, choking haze caused by forest fires in Indonesia enveloped parts of Southeast Asia for months, causing serious health problems and traffic hazards and disrupting airline schedules.

The haze then caused an estimated US$9.3 billion in economic losses. - AFP