Mahathir names deputy as his successor

Mahathir names deputy as his successor

KUALA LUMPUR (Reuters): Malaysian Prime Minister Mahathir Mohamad said on Thursday his deputy Abdullah Ahmad Badawi will succeed him if he steps down, ending speculation on his choice of a successor ahead of party elections.

Mahathir said he believed his United Malays National Organization (UMNO), the dominant party in the ruling National Front coalition, would back Abdullah as his successor at its triennial polls next year.

UMNO is due to hold its annual convention in June and pick candidates for the post of president, deputy president and vice- president, which it does every three years.

A local newspaper said recently that the convention might be held earlier but Mahathir, the party's president, said the date has not been decided.

"UMNO will determine the question of succession," the 74-year- old Mahathir told reporters.

"Of course, if I step down now, Dato Abdullah will take over. But I think UMNO will back Dato Abdullah as successor."

Mahathir, speaking to reporters, gave no hint when he would step down.

It was the first time Mahathir had specifically mentioned Abdullah, 60, as his successor. He had previously said his deputy would normally take over leadership of the country after him.

Mahathir, in office since 1981, is Asia's longest-serving elected leader.

His reference to Abdullah is significant because during Mahathir's 18 years as premier, three heir apparents have been cast aside, including Anwar Ibrahim who was sacked last year after five years in the job and later jailed for corruption. Abdullah was appointed deputy prime minister in January.

For Abdullah to succeed Mahathir, he has to first contest the deputy presidency of UMNO vacated by Anwar and later attempt the presidency, or go straight for the top post in the coming polls.

"We haven't considered anything at all," Mahathir said when asked about the likely date of the party elections. "I think we have plenty of time."

Analysts said Mahathir's comments would help ensure a smooth transition of power in what he has said would be his last term.

Malaysian shares barely reacted. The benchmark Kuala Lumpur Stock Exchange's Composite Index was down 1.69 points at 786.22 at midday, although food products firm Dewina Bhd., controlled by a brother and son of Abdullah, jumped 9 percent.

Analysts said Dewina stock moved on retail speculation the company could benefit if Abdullah did succeed Mahathir. Company officials could not be immediately reached for comment.

"I don't know if many people take the news too seriously because nobody is discounting the fact that Mahathir can pull any surprise he wants to," a securities analyst said.

"But it could help to allay some fears of the succession issue," the analyst said.

Investors fear political instability could arise if there is a prolonged battle within UMNO for the country's top job.

Anwar, the most charismatic of Mahathir's deputies and former heir-apparent, was jailed in April. Anwar accused his rivals of framing him with allegations of sexual misconduct and abuse of power after a public fall-out with Mahathir.

Mahathir said Anwar was morally unfit to remain in office. Professor Shahril Talib, executive director for the Asia-Europe Center at Universiti Malaya said like Anwar, Abdullah had led a national association of teachers, which has played a crucial role in Malaysia's politics, and also influenced Moslem movements in the country.

"His credentials are almost a carbon copy of Anwar," he said. Anwar was UMNO's deputy president before he was expelled from his political posts and the party. Abdullah, one of three UMNO vice- presidents, is acting as deputy president.