KL rules out early elections, Abdullah to fight in polls

KL rules out early elections, Abdullah to fight in polls

Jasbant Singh, Associated Press, Kuala Lumpur

Malaysia will not hold general elections before they are
scheduled in 2004, ruling party officials said on Friday, putting
an end to speculation that Prime Minister Mahathir Mohamad would
lead his party in polls before stepping down in late 2003.

In what will be a major test of his leadership, Deputy Prime
Minister Ahmad Abdullah Badawi, Mahathir's anointed successor,
will lead the ruling United Malays National Organization in
elections that it expects to win over the Islamic fundamentalist
opposition.

"Abdullah would have about a year to consolidate himself as
leader of the party and the government before facing the general
elections," an UMNO official said on condition of anonymity.

The benchmark Kuala Lumpur Stock Exchange index closed 2
percent higher at 725.44 points.

Speculation has been building that Mahathir, 76, would lead
the party one last time in general elections before giving up
power to Abdullah in October 2003 following a summit of Islamic
nations in Kuala Lumpur.

Mahathir, who has overseen Malaysia's transformation into one
of Asia's richest nations in 21 years in power, shocked the
country last weekend when he announced without warning at the
party's annual congress that he was resigning.

Party leaders persuaded him to retract the resignation. Under
a transition plan announced Tuesday, Mahathir will hand over his
powers as party chief and head of government to Abdullah, 62, in
16 months in a smooth transition to ensure stability.

In power, Abdullah will "give continuity to policies laid out
by Mahathir" over the past 21 years, an official said, denying
reports that Abdullah might replace Mahathir's economic advisers,
who are highly respected by foreign investors.

Mahathir will keep his eye fixed on the economy, the official
said, and is likely to appoint a second finance minister to help
him. He has held the finance portfolio for more than a year.

Abdullah is likely to take over key tasks in running the
government when Mahathir returns next week from an Italian
holiday. Mahathir has indicated that he would like to focus on a
few major tasks such as education and party matters, the official
said.

The fundamentalists are perceived to be losing popularity
following the Sept. 11 terror attacks in the United States.
Mahathir's party hopes to reverse opposition gains from elections
in 1999 in reaction to anger over the firing and jailing of his
popular then-deputy, Anwar Ibrahim.

Anwar said in a statement released through his lawyers that
the long transition "borders on political absurdity. It only
confirms hesitancy in the decision and a perceived lack of
confidence and competence of the anointed successor."

Mahathir has strengthened the party since 1999, and Abdullah,
dubbed the "Mr. Clean" of Malaysian politics and a seasoned
campaigner, has tried to forge unity and to dispel criticism of
corruption.

Abdullah spearheaded the party in several by-elections
victories over the past two years against the Pan-Malaysian
Islamic Party, whose biggest gain in 1999 was winning control of
a second of Malaysia's 13 states.

Abdullah faces his next test soon - to contest by-elections
for the parliamentary and state assembly seats that became empty
Sunday when the fundamentalists' leader, Fadzil Noor, died after
recent bypass surgery.

Fadzil, a moderate, was an architect of an opposition
coalition with widely disparate ideologies in 1999 that
capitalized on public disapproval over the treatment of Anwar.
The coalition would have made Anwar prime minister if it had won.

Anwar has been convicted of sodomy and corruption and is
serving prison terms totaling 15 years. He claims he was framed
to prevent him from challenging Mahathir for power. The
government denies it.