Malaysian PM says no date set for power transfer, to seek re-election in December party polls

Embattled Malaysian Prime Minister Abdullah Ahmad Badawi said Sunday that he would seek re-election as ruling party leader in December and that he has not set a date for handing over power to his deputy.

On Friday, Abdullah said he has struck a deal with his deputy, Najib Razak, on when he would step down as pressure for him to resign intensified amid public anger over rising fuel prices.

But Abdullah clarified Sunday that no timeframe has been set for the power transfer to Najib and that he intends to stand for the presidency of the United Malays National Organization, or UMNO.

"I will not be retiring before December. I will be contesting for the post of party presidency," he told reporters, adding that no date has been set for stepping down. "That could be anytime, but not in one or two or three months."

Abdullah has been fighting for his political survival after his ruling coalition, led by UMNO, suffered shock losses in March general elections. In its worst performance since independence in 1957, it retained power with only a simple majority in Parliament and lost control of five of the country's 13 states.

Abdullah's critics have since demanded his resignation, accusing him of making numerous policy blunders and allowing problems such as corruption and racial disputes to fester.

He suffered further public criticism after raising retail gasoline prices by 41 percent early this month. More than 1,000 people marched in Kuala Lumpur, Malaysia's main city, Friday in the biggest protest so far against the price hike, calling for Abdullah to step down.

Najib has stood by Abdullah and pledged not to challenge him for power. But political observers said Abdullah risks losing power if other rivals challenge his presidency of the ruling party in December.

Abdullah, who took office in 2003, also faces a threat from the opposition, which claims it has the secret support of enough ruling coalition lawmakers to bring down the government.

Abdullah said Sunday the government will not reverse its decision to cut fuel subsidies, reiterating that the subsidies were untenable amid rising world oil prices. He has, however, promised not to further raise gasoline prices this year.

"I know Malaysians are furious. They are accustomed to getting oil very cheap," Abdullah said. "If they want to protest against the increase, it's OK. We will continue to do what is best for the country."

Opposition parties plans to hold more protests nationwide in the next few weeks, culminating in what they say will be a rally by 1 million people in Kuala Lumpur on July 5.