Published September 18, 2008

Abdullah takes defence portfolio, appoints Najib as finance minister

Sabah Progressive Party leaves National Front, citing dissatisfaction

By S JAYASANKARAN
IN KUALA LUMPUR
Email this article
Print article
Feedback

PRIME Minister Abdullah Ahmad Badawi has moved to appease supporters of his deputy Najib Razak by appointing the latter as Finance Minister with immediate effect while taking over Mr Najib's defence portfolio.

Mr Abdullah: Indicated that he may relinquish his post before 2010 deadline

Mr Abdullah also gave a grim warning to his former Cabinet colleague Anwar Ibrahim at yesterday's press conference when he described Mr Anwar as a 'threat to the economy and, possibly, national security' of the country.

When asked what action he planned against Mr Anwar, Mr Abdullah's answer could not be described as reassuring. 'I will not indicate the plan,' he said, 'but what I do will be in the best interests of the people and country.'

In a new setback for Mr Abdullah, a small party yesterday announced that it was leaving the ruling coalition because of dissatisfaction with his leadership.

Mr Abdullah also indicated that he may relinquish his post before the earlier deadline. 'I will not be staying (longer) than 2010 naturally. If I should want to go earlier, that is (possible). That is a flexibility that we have arranged,' he told a news conference. In addition, Mr Abdullah reiterated that both men agreed to his plan to hand over power to Mr Najib by June 2010 although, for the first time, he conceded that he could leave earlier, 'depending on my deputy's performance'.

Tellingly, Mr Najib did not concede an inch when asked if the promotion - the finance portfolio is one of the most powerful positions in the country - would mean that he would decline if delegates from the ruling United Malays National Organisation (Umno) ignored the agreement and nominated him, instead of Mr Abdullah, for the party presidency in party polls scheduled for December.

'Both the Cabinet and the Umno Supreme Council have agreed to the decision, so I hope the party will follow it,' said a straight-faced Mr Najib in an answer that Mr Abdullah could not have liked.

In fairness, however, Mr Abdullah did say when he unveiled his handover plan three months ago that Mr Najib would be handed increasingly greater responsibilities ahead of his assuming the premiership. In addition, National Front component parties had complained that foreign investors needed a person who could articulate Malaysia's interests well.

Even so, political analysts interpreted the move as a pre-emptive strike by Mr Abdullah to preserve his position against what could be a potentially stormy Supreme Council meeting today.

Also yesterday, the Sabah Progressive Party, a small member of the 14-party National Front, quit the coalition.

The party has two members in Parliament, and its exit reduces the National Front's majority to just 56 at a time when Opposition leader Anwar Ibrahim is trying to seize power.

To say that the premier is under pressure would be an understatement. Last week, International Trade Minister Muhyiddin Yassin called on Mr Abdullah to step down earlier than planned. On Monday, Law Minister Zaid Ibrahim resigned in protest against the administration's arrest of three people, including a female journalist, under the Internal Security Act.

Looming over the intense internal bickering in Umno is the shadow of Opposition leader Anwar Ibrahim who, on Tuesday, said that he 'had the numbers' of possible defectors to his Opposition coalition and would proceed to topple the government through peaceful means.

The portents are potentially ominous for Mr Abdullah, 67, who could face an open revolt today if enough Supreme Council members believe former premier Mahathir Mohamad's repeated refrain - that Mr Abdullah had to go if the ruling National Front coalition had any chance in the next general election.

The intense political uncertainty is casting a pall over the markets with yields on Malaysian government securities rising and the Kuala Lumpur stock exchange falling briefly to a two-year low yesterday. By and large, however, analysts weren't impressed by Mr Najib's elevation.