Malaysia's Prime Minister Abdullah Ahmad Badawi was sworn in for a second term Monday, winning the backing of his ruling coalition despite unprecedented losses in weekend elections.Trade on the Malaysian bourse was suspended when shares plunged more than 10 percent in the wake of the Barisan Nasional coalition's shock loss of its crucial two-thirds parliamentary majority and four states to the opposition.
Voters punished the government for rising inflation and its mishandling of racial tensions, leading to a backlash from Malaysia's minority ethnic Chinese and Indians as well as Muslim Malays who form its powerbase.
But a defiant Abdullah rejected calls from his predecessor Mahathir Mohamad to step down, and went to the royal palace in Kuala Lumpur to take an oath before Malaysia's King Mizan Zainal Abidin in a solemn ceremony.
Later, after meetings of the Barisan Nasional and the United Malays National Organisation (UMNO) which leads it, Deputy Prime Minister Najib Razak said they had given Abdullah their "full support" to remain as leader,
Abdullah was upbeat despite the rebuke handed to the coalition which has ruled for half a century, and downplayed the loss of the two-thirds majority which had allowed it to amend the constitution at will.
"It will not hamper us from carrying out government policies. We have a strong majority," he said, adding that "the security situation in the country is peaceful and there is no sign of any chaos."
But Abdullah conceded that UMNO, which represents majority Muslim Malays, needed to consider reforms.
"UMNO has accepted what happened was a lesson to us," he said. "We do recognise the shortcomings and we will try to introduce new policies so that we can progress."
Abdullah's task now is to form a new government under the Barisan Nasional, which is made up of 14 race-based parties including ethnic Chinese and Indian parties that were annihilated in the polls.
Meanwhile the opposition, led by former deputy premier Anwar Ibrahim -- who has made a stunning political comeback after his sacking and jailing a decade ago -- was getting down to business.
The opposition parties -- Anwar's Keadilan, the Chinese-based Democratic Action Party (DAP) and the Islamic party PAS -- won an unprecedented four states in the polls.
PAS also extended its margin in northern Kelantan state, which it had held by a thin majority.
Anwar said late Sunday that the opposition parties would be able to put aside their ideological differences and govern effectively.
He said they would "focus on the economic issue and trying to resolve some of the problems affecting the masses, particularly in the issue of poverty and the normal needs of an average citizen."
Anwar is banned from holding public office until April due to a corruption conviction, and he said his plans to enter parliament in a by-election are on hold until he consolidates his party's gains.
Observers said Malaysia's fractured, race-based political scene has been shattered by the electoral outcome, and looked set to be replaced by a modern two-party system.
The Star newspaper said in an editorial that Barisan Nasional could consider reforming into a one-party, multi-racial organisation, to face the challenge from Keadilan which represents all three ethnic groups.
"The first page of the new Malaysian political era opens today," it said.
Malaysia's bourse was shaken by the political earthquake, leading to a one-hour suspension triggered when the bourse fell by more than 10 percent.
The main index finished down 123.11 points, or 9.5 percent, at 1,173.22 in the biggest tumble since the height of the Asian financial crisis in September 1998, when it dived 21 percent in a single session.
Abdullah expressed confidence in Malaysia's fundamentals.
"The government of Barisan Nasional will be a strong government. We will ensure the economy continues to remain strong. Whatever actions we have taken are working well and has been welcomed by the private sector," he said.
Agence France-Presse - 3/10/2008 12:11 PM
Malaysia's ruling party supports PM to remain: deputy PM
Malaysia's ruling party has given Prime Minister Abdullah Ahmad Badawi its "full support" to stay on as leader, Deputy Prime Minister Najib Razak said Monday after a shock election setback.
"The UMNO Supreme Council has given its full support to Prime Minister Abdullah Ahmad Badawi to remain as the prime minister and UMNO president," Najib said after a meeting of the party's policy-making body.
"And this stance is very important to maintain investor confidence in our country and to allow the party to face all the challenges."
Abdullah has faced calls for his resignation after the unprecedented losses in Saturday's polls, which deprived the government of its two-thirds majority for the first time since 1969 and handed the opposition four more states.
"We hope there will not be any doubt about the leadership in UMNO or any speculation that there would be a leadership change," Najib said after the meeting of the United Malays National Organisation (UMNO).
Abdullah was upbeat after being sworn in for his second term earlier Monday, downplaying the loss of the two-thirds majority, which prevents the ruling coalition from amending the constitution at will.
"We were eight seats short of securing a two-thirds majority but we accept the decision," he said.
"It will not hamper us from carrying out government policies. We have a strong majority," he said, adding that "the security situation in the country is peaceful and there is no sign of any chaos."
Abdullah indicated that UMNO, which leads the ruling Barisan Nasional coalition, was in for a period of introspection.
"UMNO has accepted what happened was a lesson to us and it is a signal that we need to give attention to the expectations of the people, which we need to carry out," he said.
"We do recognise the shortcomings and we will try to introduce new policies so that we can progress."
After the stock market plunged more than 10 percent during Monday's session as investors panicked over the election result, Abdullah expressed confidence in Malaysia's fundamentals.
"The government of Barisan Nasional will be a strong government. We will ensure the economy continues to remain strong. Whatever actions we have taken are working well and has been welcomed by the private sector," he said.
Agence France-Presse - 3/10/2008 11:51 AM
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