Prime Minister Mahathir Mohamad has appointed a second finance minister in a mini-reshuffle seen as paving the way for his retirement in October next year, analysts said today.

The announcement late yesterday naming Jamaluddin Jarjis, chairman of national power firm Tenaga Nasional, to the post took the political and business community by surprise, they said.

Also moved up were Tengku Adnan Tengku Mansor as minister in the prime minister's department and senator Zainuddin Maidin as deputy information minister.

Tengku Adnan, 52, was deputy minister in the same department and Zainuddin, 63, was the information ministry's parliamentary secretary.

All three are members of Mahathir's United Malays National Organisation (Umno), the lynchpin of the ruling coalition, and will be sworn in on tomorrow.

Analysts said the appointment of a second finance minister would not lead to any policy changes as key decisions still rest with the 76-year-old veteran premier, who is also finance minister.

Mini-reshuffle

The mini-reshuffle was part of moves by Mahathir to ease his workload and prepare for his departure in less than a year when he hands over power to his deputy Abdullah Ahmad Badawi after 22 years at the helm, the analysts said.

Mahathir, who took over the finance portfolio after Daim Zainuddin resigned in June last year, said this year he was seeking a suitable candidate as second finance minister.

"Those appointed are all sycophants. Mahathir is rewarding his loyalists before he steps down. The reshuffle will not bring about any major changes," political analyst P Ramasamy told AFP .

"He is preparing the way for his resignation and putting in place people loyal to him."

Jamaluddin, 51, is an engineer by profession and sits on Umno's Supreme Council, the party's highest decision-making body.

He is the second person to be appointed second finance minister, after Mustapa Mohamed who held the post from September 1998 until November 1999 when he lost his parliamentary seat in general elections.

Surprise appointment

Jamaluddin's appointment came as a surprise as he was not seen among candidates previously tipped to take up the post.

The Malaysian Strategic Research Centre's Abdul Razak Baginda said Jamaluddin's appointment was to "fill in the gap" in the next 11 months before the premier resigns.

Mahathir is scheduled to take two months' leave and will host two major international conferences next year, and therefore needs "someone to hold the fort" when he is away, Razak said.

One senior Umno official said Jamaluddin's appointment was "based on trust and confidence, not on academic qualifications."

"Uppermost in the PM's mind is to strengthen and reinforce the government machinery before he leaves. Changes are already underway. Abdullah is assuming more and more responsibilities and will take over when the time comes," he said.

"The focus now is on strengthening the party before general elections."

A general election is not due until late 2004. - AFP