The Stage Is Now Set For Najib As Prime Minister

The stage is now set for Deputy Prime Minister Datuk Seri Najib Tun Razak to be installed as the nation’s sixth Prime Minister.

Najib was yesterday formerly elected as president of Umno at the party’s general assembly in a handover that by party tradition was uncontested.

Najib, the eldest son of Malaysia’s second illustrious Prime Minister, Tun Razak Hussein, is to take over as premier on April 3 from Datuk Seri Abdullah Ahmad Badawi, who is stepping down after 5 ½ years in office.

Najib, 55, became the Deputy Prime Minister on Jan 6, 2004.

Abdullah chose Najib as his deputy three months after assuming the post of Prime Minister following the retirement of his predecessor Tun Dr Mahathir Mohamad in October 2003.

Abdullah, 69, in his last policy speech as party president, called on the members to give their solid support to enable Najib to take Malaysia to greater heights.

The prime minister, who pledged to give his undivided support to Najib as the new Umno president and prime minister, said he is handing over the national responsibility to Najib whom he described as "a younger leader who has the maturity and experience to navigate the nation to greater heights."

Abdullah has held the post since October 2004.

Najib’s elevation to prime minister comes at a critical time when the economy is heading for recession despite a RM60 billion stimulus package that he announced earlier this month.

He had earlier in November last year announced a RM7 billion stimulus package to avert recession in 2009.

On Wednesday, Bank Negara Governor Tan Sri Dr Zeti Akhtar Aziz said the central bank expects exports to fall by a quarter this year.

“The Malaysian economy will most probably register a contraction in the first half but Bank Negara is optimistic that the stimulus measures undertaken will lead to a recovery in the second half.

“Currently, we have already priced in further economic deterioration in the global economy in 2009 and we do expect the first half of the year to see quite a significant economic contraction because we are also comparing against an exceptionally high growth during the first half of 2008 (6.7 per cent),” she said.

The economy is projected to register a growth rate of -1 per cent to 1 per cent this year and the government and central bank have implemented measures, such as fiscal spending packages and interest rate cuts, to spur the economy.

These measures are projected to take time to work through the economy and should bear fruit in the second half.

Najib has promised to use the current global economic downturn to boost the country up the economic value chain and to liberalise services, reduce dependence on commodities and oil exports as well as low-end electronics.