Najib takes over as finance minister

Malaysiakini Prime Minister Abdullah Ahmad Badawi today said he would pass on his finance portfolio to his deputy Najib Abdul Razak, while he takes over as defence minister.

Abdullah told a press conference this afternoon that the swap in the cabinet posts will take effect immediately.

The prime minister, who has held the post of finance minister since 2004, said he had informed the cabinet about the decision.

Abdullah also said that he may step down earlier than 2010 depending on Najib's performance.

However, both leaders nevertheless reaffirmed their commitment to the 2010 power transition plan.

Abdullah added that both he and Najib will be defending their respective posts as Umno's top two leaders in the party polls this December.

Najib, who was also present at the hastily-organised press conference, when asked to comment, said: "We have agreed. I'm leaving it to the party. We are offering ourselves to the party and I hope that they will accept."

There has been increasing pressure for Abdullah to quit earlier but it now appeared that Najib has stitched a deal with his boss to placate the demands from the Umno grassroots.

Both men have been at the centre of a political maelstorm, caught by bitter infighting in their Umno party amid a mounting challenge from Opposition Leader Anwar Ibrahim who has promised to form a new government soon.

Anwar a 'threat to nation's economy'

Last week, Najib backed away from a power transition pact made with Abdullah in July, whereby his 68-year old boss would hand over to him the premiership and Umno presidency in June 2010.

Observers say the latest move by Abdullah was to assure Najib that his accession to the top post in the country was assured and also to deflect a campaign led by ex-premier Dr Mahathir Mohamad to unseat him from the Umno presidency.

Abdullah also touched on Anwar's request for a meeting to discuss a power transfer to the opposition Pakatan Rakyat as he claimed to have enough defectors to form a new government.

He said that letter which was sent by Pakatan leaders did not mention about power transfer.

The prime minister also described Anwar as a "threat to the country's economy as well as possible threat to security".

"I will not indicate what plan I have," when asked if he would take action against Anwar.

Najib has also been appointed deputy chairman of top government investment arm, Khazanah Holdings.