Malaysia PM Names Deputy Najib As New Finance Minister

KUALA LUMPUR (Dow Jones)--Malaysia's prime minister said Wednesday he is naming his deputy, Najib Razak, as finance minister, and assuming Najib's portfolio as defense minister, effective immediately.
Prime Minister Abdullah Ahmad Badawi also said at a news conference that he and Najib were reaffirming their commitment to a plan for a transition of power in 2010, at which time he will hand over the premiership to Najib.
"We are both committed to the succession plan," Abdullah said.
He said he won't remain as premier beyond 2010, but doesn't rule out stepping down earlier.
"The timing is flexible. I will decide when I want to go ... I will not be staying more than 2010."
He didn't say what events might lead to an earlier departure.
Najib, who was also present, described Abdullah's decision to make him finance minister as a "magnanimous decision." The post has traditionally been held by the prime minister.
Abdullah also said he had offered himself for reelection as president of United Malays National Organization (UMNO), the dominant party in the ruling Barisan Nasional coalition, in party elections in December.
Likewise, Najib will run for reelection as deputy president in the UMNO elections.
Abdullah said Najib, who is currently chairman of the government committee that oversees investment in the country, will also be appointed as deputy chairman of Khazanah Nasional, the state investment arm.
Malaysia is expecting two major investments, Najib said, without elaborating. He added that overall investment in the country this year is expected to be higher than that of last year.
Abdullah also suggested he may act against opposition leader Anwar Ibrahim, whose recent actions, he said, had "raised uncertainty" and "could be perceived to be a threat to the economy and national security."
"I will not indicate what plan I will take ... Whatever I do I will do it in the best interest of the country," Abdullah said in response to questions on whether he would act against Anwar.
(END) Dow Jones Newswires