Published March 30, 2009

Najib to push radical reform; ministries to be streamlined

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(KUALA LUMPUR) Malaysia's incoming prime minister will radically restructure the country's economy and its state companies to make them more efficient and to wean them off dependence on the government, a source told Reuters on Friday.

Najib Razak, currently deputy prime minister, will take over the top job this week and the economic reforms will be mostly implemented within 100 days, a radical departure from the incumbent Abdullah Ahmad Badawi who did not deliver on reform.

'Najib realises that he will need to move fast and that he needs to undertake major reforms, so an extensive plan has been prepared and is just waiting for final approval and to be rolled out once he is in office,' the senior source said.

The source spoke on condition of anonymity and had direct knowledge of the planned reforms, which were the first indications of concrete measures planned by Mr Najib.

Within a week of taking office he will name a new cabinet which will likely be 'leaner' than Mr Abdullah's, which was often criticised as bloated.

Mr Najib was confirmed last Thursday as president of the United Malays National Organisation (Umno), the biggest party in the National Front coalition that has ruled Malaysia for 51 years, in a party vote that saw key loyalists elected to top posts.

Among the major reforms, government-linked companies are to be made more competitive and to be weaned off the state and there will be big reforms to ministries.

The source said that several ministries would be restructured to streamline administration. Among those considered are the education and higher education ministries, which could be merged.

The Prime Minister's Department, which oversees law, parliament affairs, internal security and home affairs is also being looked at, the source said.

The energy, water and communications ministry could be restructured so that energy becomes a ministry of its own, pitting it in a better position to handle all energy issues, including oil and gas, electricity and even alternative energy. -- Reuters