KUALA LUMPUR - A ROW erupted within Malaysia's ruling party on Friday over control of northern Perlis state, with the dumped incumbent chief minister saying he is the rightful leader.

The dispute emerged after Saturday's elections produced the worst results in the history of the United Malays National Organisation (Umno), which has dominated Malaysian politics for half a century.

Perlis Sultan Syed Sirajuddin appointed Umno assemblyman Mohammad Isa Sabu as the new head of the state government, leading the party's incumbent Shahidan Kassim to insist he had been selected by Prime Minister Abdullah Ahmad Badawi.

'I have a letter from Prime Minister Abdullah to the Perlis Sultan nominating me as the Perlis chief minister but yet the Sultan has appointed someone else as chief minister,' Mr Shahidan told reporters.

'I am now waiting to speak with the PM to see what we can do next,' he said.

'Of course the Sultan can appoint who he wants, but he did not act on the prime minister's advice.'

A palace statement said the Sultan wanted to appoint someone who he believed enjoyed the confidence of the majority of state assemblymen.

Mr Shahidan admitted there were groups within Umno who were not happy with him continuing as chief minister.

In December, home minister and Umno secretary general Radzi Sheikh Ahmad and Environment and Natural Resources Minister Azmi Khalid, both lawmakers from Perlis, called for a change of leadership in the state.

Mr Shahidan has been at odds with the two for several years, with Mr Radzi claiming Perlis was in a state of disarray under his leadership.