Indonesian Political, Business & Finance News

KL rules out early elections, Abdullah to fight in polls

| Source: AP

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.

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