Malaysia’s PM defies pressure to quit

By John Burton, THE FINANCIAL TIMES

Abdullah Badawi on Monday defied mounting calls from leading government officials to resign as Malaysia’s prime minister as the opposition prepared to hold an illegal rally in the capital.

Mr Abdullah, who is being blamed for the government’s worst electoral setback, said he planned to stand again as leader of the ruling United Malay National Organisation when party elections were held in December.

The Umno leader traditionally serves as prime minister. But there are doubts whether Mr Abdullah can survive much longer after former allies suggested a power transfer was needed.

Rais Yatim, foreign minister, said the prime minister should set a firm deadline for handing over power to Najib Razak, the deputy prime minister, to quell a growing revolt within Umno.

“I feel if the succession plan is announced, then the grass roots leaders would know the time frame, and that is good to stabilise the party,” said Mr Rais.

Muhyidden Yassim, the trade and industry minister and Umno’s number three official, called for a change in the party’s leadership to prevent a rift. He is seen as a possible challenger for the party leadership if Mr Abdullah does not step down before December.

Mr Abdullah last week said he would discuss handing over power to Mr Razak, at an unspecified date.

The government lost its two-thirds parliamentary majority and an unprecedented five of Malaysia’s 13 state governments in last month’s elections.

There are worries that a messy political fight over Mr Abdullah’s future could delay efforts to keep the economy on track when exports are expected to slow to the US, one of Malaysia’s biggest overseas markets.

A rapid solution to the government leadership crisis could help to fend off a possible effort by Anwar Ibrahim, the opposition leader, to persuade members of parliament to defect and bring down the government.

Mr Anwar was scheduled on Monday night to hold a rally – described as illegal by police – in Kuala Lumpur to mark the end of a five-year ban preventing him from standing for office after he was convicted for abuse of power following his sacking as deputy prime minister in 1998.

But police said the rally was illegal, since the organisers had not received an official permit for it to be held.

The police warned that those attending would be ”sternly dealt with.” Malaysia normally bans outdoor gatherings of five or more persons without a permit.