Malaysian party quits coalition, PM says may step down earlier

Malaysia's premier, who is facing an opposition bid to seize power, was hit Wednesday with the departure of a party in his coalition, and said he may step down earlier than planned.

The resignation of the Sabah Progressive Party (SAPP), which has two lawmakers in parliament, comes after opposition leader Anwar Ibrahim said he has signed up enough defectors to topple the Barisan Nasional (BN) coalition.

SAPP president Yong Teck Lee said the party would become independent and was not applying to join Anwar's three-member Pakatan Rakyat opposition alliance, but he launched a withering attack on the government.

"The BN has lost its moral authority to rule," he said of the coalition that has dominated Malaysian politics since independence from Britain.

"Perhaps, after 50 years of uninterrupted government, some BN leaders have got it in their heads that they have a divine right to rule," he said, accusing it of mismanaging the economy and abusing security laws to arrest opponents.

SAPP has been an irritant to the 14-member coalition since June, when it called for a vote of no confidence in Abdullah. Its departure from the coalition was not unexpected.

But its decision was another body blow for an administration that has been in disarray since March elections, which handed the opposition control of five states and a third of parliament -- its best ever result.

Abdullah, who had announced a plan to hand over to his deputy Najib Razak by mid-2010 in an effort to silence calls for his resignation after the polls debacle, said he could depart sooner than planned.

"I will decide when I want to go... I will not be staying more than 2010," he told a press conference on Wednesday.

"If I should want to go earlier, that is flexible. That is the flexibility we have arranged," he said.

"It depends on the progress of the role I am giving to Najib. Let's see what he can do."

There had been speculation that Najib and other figures in the ruling party were preparing to challenge Abdullah, whose popularity has tumbled due to a weakening economy and broken promises for reform.

In a move seen as an attempt to quell any rebellion in the ruling party, which will hold leadership elections in December, Abdullah also said he was passing his finance portfolio to Najib with immediate effect.

James Chin, a political analyst from Monash University's campus in Kuala Lumpur, said Abdullah had been forced to rethink the handover date because of a groundswell against him in the ruling party.

"The pressure is building up and it is getting to him," he said.

Anwar said this week that he has the support of more than 31 lawmakers from the coalition, giving him a small majority in parliament.

He has called for a meeting with Abdullah to arrange a smooth transition of power, but the premier has refused and demanded he release the names of the defectors.

Abdullah on Wednesday delivered a warning to Anwar, a former deputy premier who was sacked and jailed a decade ago, accusing him of "lying to the public and confusing the people."

"He has become a threat to the economy and national security," he said in what is a serious allegation in Malaysia, where the government can use draconian internal security laws to detain its opponents without trial.

"I will not indicate what plan I will take, what I do will be in the best interests of the people and the country," Abdullah said.

Chin said the comments were a clear warning that Anwar could face arrest under the Internal Security Act (ISA).

"If they arrest Anwar under ISA it will not be accepted by both Malaysians and the international community," he said.

Agence France-Presse - 9/17/2008 10:39 AM GMT