M'sia DPM: Stop bickering

Source StraitsTimes

PUTRAJAYA (Malaysia) - MALAYSIA'S deputy leader on Tuesday called for an end to political squabbles in the country, urging the people to unite to face the global financial crisis that he said could derail the country's growth.

Deputy Prime Minister Najib Razak said the government may have to cut its growth target of 5.5 to 5.7 per cent this year 'if there is more bad news out of the US and if the current situation leads to a significant downturn'.

'Malaysians need to remain united and cohesive as the country prepares to face the global financial economic challenge,' Mr Najib, who is also finance minister, told reporters.

The National Front coalition, which has led Malaysia since independence in 1957, faces the threat of being ousted by opposition leader Anwar Ibrahim, who has moved to engineer defections from the ruling party.

'Now is not the time for politicking, speculation and political game by anybody. The government will act responsibly and swiftly to address any eventuality to safeguard the interest of the people and the nation,' Mr Najib said.

Anwar's People's Alliance coalition won an unprecedented 82 seats in the 222-member Parliament in March and took control of five of Malaysia's 13 states. The National Front now has only a 28-seat majority in Parliament.

The ruling party has indicated Prime Minister Abdullah Ahmad Badawi may step down by March and hand power to Mr Najib.

The domestic political uncertainty is adding to jitters among investors already rocked by the global financial crisis.

But Mr Najib brushed off fears of political chaos in the country, saying the National Front remains firmly in power. The government is confident of weathering the crisis, with ample liquidity in the banking system and robust exports, he said.

He urged Washington to find a quick solution after the US House of Representatives' on Monday rejected a US$700 billion (S$996 billion) bailout plan for ailing financial companies burdened with bad mortgage-related debts.

'Malaysia for a long time has called for an overhaul and re-examination of the global financial system,' Mr Najib said. 'We hope the international community led by the United States will now respond positively to this urgent need.'

The bailout plan is aimed at preventing a possible collapse in the US financial system, which would have dramatic repercussions for Asia and the entire global economy.