Published May 13, 2009

National Front regains power in Perak

Appeals court delays handover to opposition; move may deepen rifts

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(IPOH) Malaysia's National Front government, armed with a court order, took control of disputed Perak state again yesterday in a development that will likely deepen political divisions in the country.

Mr Nizar: Leaving the Ipoh state government office after the appeals court ruling yesterday

An appeals court decision yesterday delayed the handover of power to the national opposition after they won the right on Monday in the High Court to retake control of the state which they won at the 2008 elections.

After yesterday's decision, riot police sealed off the assembly building in the state capital of Ipoh, where 90 people were arrested in anti-government protests last week.

The crisis in peninsular Malaysia's second largest state began when the National Front government took control of the state government in February through defections orchestrated by Najib Razak before he became premier in April.

It comes at a time when the National Front coalition is at its weakest in 51 years of ruling this South-east Asian country of 27 million people and as the economy faces its first recession since the Asian financial crisis a decade ago.

'Perak is still in a state of limbo and uncertainty,' said Mohd Nizar Jamaluddin, the chief minister of the opposition People's Alliance state government. 'The courts cannot decide on the status of the government. It must be the people.'

Mr Nizar left the state assembly building after the appeals court ruling, and the National Front chief minister said that he would take power today and reverse all decisions made by People's Alliance government over the last two days. 'I will continue my duties as chief minister until the appeals court decides on this matter,' Zambry Abd Kadir told a news conference in Ipoh.

The stalemate in Perak comes as Malaysia's government is implementing a US$16 billion budget boost to help the economy and as bond yields have risen due to a surging government budget deficit that will hit 7.6 per cent of gross domestic product (GDP) this year. A-rated Malaysian five- year bonds yield a percentage point more than BBB-rated Thai bonds.

The government stumbled to its worst ever election result in national and state polls last year and has since suffered defeats in four out of five by-elections as well as ousting lacklustre premier Abdullah Ahmad Badawi and replacing him with Mr Najib. -- Reuters