KUALA LUMPUR, July 10: Malaysian premier Abdullah Ahmad Badawi is asking his party on Thursday to back a plan for him to retire in June 2010, a party source said, in a move some say could deepen the country’s political turmoil.

A political storm has been brewing in the usually stable Southeast Asian country, with a challenge to Abdullah’s leadership and allegations of sex and murder in the government and opposition souring the mood of investors.

Abdullah was seeking the approval of his United Malays National Organisation (UMNO) party’s policy-making body on Thursday for a plan to hand over to his deputy Najib Razak in June 2010, said the source who declined to be identified.

The party, the dominant member of the coalition that has ruled Malaysia since independence in 1957, began a regular meeting at 0700 GMT on Thursday.

“He is trying to get the supreme council to back his succession plan to stave off any challenge to his leadership,” the source said. “But there may be opposition from some council members to the plan.”

A spokesman for the prime minister’s office said he did not know what would be announced.

The influential Malaysian Insider news website had earlier reported that Abdullah would announce on Thursday plans to retire in June 2010.

The premier, who led the National Front coalition to a landslide victory in 2004, has seen his popularity tank after the government suffered its worst electoral setback in 50 years in a March general election.

Calls for Abdullah to step down, coupled with a resurgent opposition sniping at the ruling coalition’s heels, have triggered fears of a sudden change in government and policy.

LAME DUCK: Some said Abdullah’s handover plan, if approved, could derail his agenda of tackling civil service corruption and reforming the judiciary.

“There are two questions, whether he will be a lame duck prime minister and whether he can continue his so-called programmes and agendas,” said opposition politician Lim Guan Eng, who is chief minister of northern Penang state.

“I think this would create more uncertainty, especially in the current political situation.”

The Malaysian stock market has fallen almost 5 per cent in the last two weeks as jittery foreign investors flee the country. It ended down 0.4 per cent on Thursday. Some analysts said Abdullah’s plan could make investors even more nervous.

“With Abdullah announcing this timeline to step down, all guns are going to be aimed at his deputy, from the opposition, to those within UMNO,” said James Chin, political science lecturer at Monash University, Malaysia.

Najib’s reputation has taken a hit after his name was linked to a sex and murder scandal involving a Mongolian model.

The opposition alliance also said on Thursday it planned to introduce a parliamentary debate by Monday to discuss the lack of confidence in the government.

“We are submitting a motion to debate the confidence crisis towards the government,” said Tian Chua, the spokesman for the opposition People’s Justice Party.—Reuters