Prime Minister Abdullah Ahmad Badawi dismissed suggestions that the allegations faced by his deputy Najib Razak involving murdered Mongolian Altantuya will affected the handover in two years time.

"I think that is separate. This is a decision at a party level," said Abdullah at a packed press conference today.

umno special briefing abdullah ahmad badawi announce resignation date 100708 03 Najib's close confidant has been charged with abetting the murder of Altantuya Shaariibuu and there were allegations that the deputy prime minister had an affair with the woman.

Abdullah said he had struck an agreement with his deputy Najib Razak to hand over power but first wanted the opportunity to implement reforms and projects initiated since becoming premier in 2003.

"I have decided to hand over my position to Najib to take over as party president in June, in the middle of 2010," Abdullah told a press conference.

"I have achieved an agreement with Najib that I will not lead the BN and Umno in the next election... and also this means that a transition of power must take place," he said.

Najib: Support PM at party polls

Abdullah had resisted calls to quit after general elections that handed the opposition unprecedented gains, and a fuel price hike that triggered public outrage and a series of protests.

"There are many things and programmes I want to achieve before I hand over and I hope that Najib will continue as my deputy in carrying this out," he said as he stood alongside Najib and other senior Umno leaders.

Najib pledged his support for Abdullah and urged the party to accept his decision and re-elect the premier in leadership elections in December where disgruntled Umno elements had been expected to vent their feelings.

umno special briefing abdullah ahmad badawi announce resignation date 100708 04 "Today starts the process of the transition of power in an orderly manner, following Umno tradition, where he has given support for me to be his replacement," he said.

"I will continue to accept Abdullah as head of the party," he said.

"I urge members to support the candidacy of Abdullah Ahmad Badawi as president of the party in the upcoming elections and urge party members to accept this."

After a meeting of Umno division and branch leaders - whose support Abdullah needs to stay in power - the embattled premier said he was confident the party would accept the long-range departure plans.

"The meeting gave me a standing ovation after this so I think it was well received," he said.

Political uncertainty

Political uncertainty since the elections, which has hurt Malaysia's financial markets, was heightened after opposition leader Anwar Ibrahim said he is poised to seize power with the help of government defectors.

Anwar and Najib are now gripped in an astonishing political brawl, with both facing serious misconduct accusations that could decide who will be the next prime minister.

Anwar faces new allegations of sodomy - the same charge he was jailed over a decade ago - which he says are fabricated by the government, and Najib has been forced to deny accusations that he had an affair with Altantuya, who was murdered in 2006.

The opposition alliance on today filed a motion in parliament seeking to hold a debate on the "loss of confidence" in the BN coalition government, which is led by Umno.

"The public has lost confidence in the integrity of the government," said Anwar's wife Wan Azizah Wan Ismail, who leads the opposition PKR.

"The people are now facing a huge crisis, having to bear the burden of expensive fuel, the higher cost of food and basic needs. The parliament should debate this motion," she said.