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Malaysian PM reshapes cabinet, drops old guards

Thursday, 20 March 2008


John Burton
FT Syndication Service
KUALA LUMPUR: Abdullah Badawi, the prime minister of Malaysia, announced a big shake-up in his cabinet Tuesday as he sought to shore up support in the wake of the government's biggest election setback in 50 years.
Mr Abdullah dropped several old-guard politicians, including Rafidah Aziz, trade and industry minister since 1987, and replaced them with reform-minded figures or allies. The heads of only four of the 32 ministries were left unchanged.
The Prime Minister hopes that the new cabinet will blunt calls for his resignation after the government lost its two-thirds majority and five of Malaysia's 13 states in polls this month.
One Malaysian fund manager said: "Abdullah is doing now what he should have done in 2004." In that year he led the National Front coalition government to a landslide victory.
Mr Abdullah, whose party power base is weak, was criticised for not cleaning out politicians from the administration of Mahathir Mohamad, who are seen as blocking economic reforms and anti-graft measures. The vote punished the government for falling short of promises in these areas.
The prime minister hopes to avoid a challenge to his leadership in August at party elections for the United Malays National Organisation, the dominant governing group. "Half [the cabinet] will be new faces," Mr Abdullah said.
Muhyiddin Yassin, agriculture minister and an Abdullah ally, will take over the trade post. Rais Yatim, culture minister and an Umno reformist, will become foreign minister. Syed Hamid Albar, a Mahathir holdover, will move from the foreign to the home ministry. Zaid Ibrahim, a prominent lawyer, is expected to push for judicial reforms as law minister following scandals involving the courts.
The economic team was left largely intact. Amirsham Aziz, outgoing chief executive of state-owned Maybank, Malaysia's largest bank, will head the economic planning unit under the finance ministry. Najib Razak will remain deputy prime minister and a potential successor.
Umno's old guard could be angered by the sacking of ministers associated with Dr Mahathir. The appointment of younger politicians is seen as an attempt to appease the party's moderates, who might back Mr Abdullah in a leadership challenge.
Some Umno reformists have been seeking a meeting in May on the poll results, which could trigger a showdown with Mr Abdullah.