Malaysia said today it will stick to its growth forecast of 7.0 percent for 2004 and 6.0 percent this year despite the expected economic fallout from last week's tsunami disaster.

Deputy Prime Minister Najib Razak said the disaster would cost the country an estimated RM100 million, taking into account the destruction of houses, boats, vehicles and other property as well as damage to public infrastructure and transport links.

"Overall, the damage wreaked by this disaster exceeds 100 million ringgit," Najib was quoted as saying by the Bernama news agency.

Economy unaffected

However, Second Finance Minister Nor Mohamed Yakcop said the economy would be unaffected by the tsunami, which has claimed the lives of 68 Malaysians and about 145,000 in coastal areas around the Indian Ocean.

Malaysia's economy expanded 6.8 percent in the third quarter to September and the government would proceed with its goal of ensuring growth remains on track, he said.

Analysts have said Sri Lanka and the Maldives were likely to suffer the most from the Asian tsunami catastrophe, with bigger economies in the region including India, Indonesia and Thailand better placed to withstand the fallout.