KUALA LUMPUR, MALAYSIA - MALAYSIA'S premier may have thought he had bought some time to remain in power by putting off his party elections until December.

But a growing revolt within his United Malays National Organisation (Umno) following last month's poll disaster has fed speculation that Datuk Seri Abdullah Badawi may be forced to throw in the towel sooner rather than later.

Some Umno leaders have told him to immediately unveil a succession plan, ignoring his protestations that he would not leave without a fight.

The chorus of calls for his resignation suggested he would not remain as PM for more than a few months, one Western diplomat said.

'If he goes, he goes early,' said Dr James Chin, a political scientist at Monash University's Malaysia campus.

'I suspect he will go this year. Everywhere he goes, the delegates are telling him to reconsider his position and prepare for a smooth transition of power.'

For the first time in 40 years, the opposition denied Datuk Seri Abdullah's ruling Barisan Nasional (BN) coalition a two thirds parliamentary majority and seized control of five states in the election, spelling trouble for his future leadership.

There are many reasons why many within and outside Umno are reluctant to wait a few more months.

A protracted leadership tussle and a deep split in Umno - the bulwark of the coalition - would heighten Malaysia's political risks, hamper policy-making and further delay moves to reform the fuel subsidy system that is draining national finances.

The main stock index has fallen by nearly 5 per cent since the March 8 polls, with the nation's largest listed firm, Sime Darby losing nearly 20 per cent, on political worries.

Following the election, Datuk Seri Abdullah has been snubbed twice by the country's largely ceremonial Malay sultans. His slimmer, new-look cabinet has yet to make any impact and his popularity rating has slumped to a record low.

The US$200 billion (S$272 billion) economy, South-east Asia's third largest, is starting to cool following a fallout from the US slowdown while rising food prices could spark widespread anger.

'From the policy front, it is also doubtful that the government can remove the food and energy subsidies as originally envisioned,' HSBC said in a report released late last month.

'It is likely that the government's finances will slip further as it runs bigger deficits to maintain the economic expansion.'

RED CARPET

Another push-factor for Datuk Seri Abdullah, 68, is opposition leader Anwar Ibrahim.

Datuk Seri Anwar's political comeback could pose a big headache for the PM and his coalition, already facing a more independent-minded parliament and closer scrutiny by the country's constitutional monarch.

From April 15, Datuk Seri Anwar will be allowed to run for office again when a five-year ban, imposed following an earlier conviction for corruption, expires.

Datuk Seri Anwar, 60, said last week he would not immediately run in a by-election but would help strengthen the opposition People's Alliance, which snared 82 parliamentary seats and controls five of Malaysia's 13 states.

Some Umno grassroots' leaders have warned that Umno must take Datuk Seri Anwar's challenge seriously. It would need just 30 Barisan MPs to defect and cause the government to fall.

'Umno and Barisan Nasional are now deemed to be quite irrelevant, so I would certainly appeal to them to join the People's Alliance,' a confident Anwar said after meeting his Parti Keadilan's lawmakers at the weekend. The hotel where the event was held rolled out a red carpet to welcome him.

The loudest calls for Datuk Seri Abdullah's ouster have come from his outspoken predecessor, Tun Dr Mahathir Mohamad. The 82-year-old, still widely respected in Umno, said Datuk Seri Abdullah should immediately quit or face a challenge for Umno's presidency in December.

By tradition, the Umno leader is the prime minister.

Trade Minister Muhyiddin Yassin, 61, - the No. 3 in Umno - has also emerged as a critic of Datuk Seri Abdullah.

'I think the grassroots are boiling with utter dissatisfaction. If changes don't happen in Umno, many adverse things will surface,' he said in an interview published by the Umno-controlled Mingguan Malaysia newspaper at the weekend.

Datuk Seri Abdullah has publicly endorsed his deputy, Datuk Seri Najib Razak, as his successor, in a bid to prepare for his eventual exit and to keep the DPM as his running mate in the December party elections, if he is still around by then.

He has so far kept his cards close to his chest on the timing of his eventual departure. 'There are certain things that I like to do now. I cannot leave at a time when the party is in this condition.' - REUTERS