Malaysia's first leadership change in a generation has introduced a new political style to a country dominated for two decades by the often controversial retired prime minister Dr Mahathir Mohamad.

His successor, Abdullah Ahmad Badawi, has worked quietly to consolidate his power since taking over on October 31, but signs have begun to emerge of a fundamental shift in how the government does business.

Just days before his retirement, Mahathir handed a multi-billion dollar rail construction deal to a local consortium headed by politically well-connected tycoon Syed Mokhtar Albukhary, but last week Abdullah suggested strongly that the deal will be shelved.

Two changes

The move is a possible signal of two changes, analysts say: an end to the mega-projects favoured by Mahathir, such as the creation of the new administrative capital of Putrajaya, and the beginning of more transparency in how major contracts are awarded.

Abdullah said he would prefer to give priority to projects involving healthcare, education and agriculture.

The new premier's action over the rail deal was the second indication in just over a month that Mahathir, who ruled for 22 years, is not pulling the strings from behind the scenes as some critics had suggested he would.

The first was Abdullah's refusal to rubberstamp Mahathir's choice of Defence Minister Najib Razak as deputy prime minister - a post he has still not filled.

Instead, analysts say, he has spent his first 30 days quietly consolidating his position in the ruling party as factions jockey for influence after Mahathir's departure.

He has held back on any cabinet reshuffle, hanging onto two powerful ministries - finance, which was held by Mahathir, and his own home affairs portfolio.

"He's taking his time, he has to establish control of Umno (United Malays National Organisation)," said National University of Malaysia political scientist P Ramasamy (left).

"It is not weakness, he's waiting for right time to call his shots."

Apart from winning over the party, Abdullah is preparing for a general election expected in the first half of next year, in which the main opposition threat comes from the hardline Islamic Party (PAS).

The Islamists are strong in the rural north of the country, and that is where Abdullah chose to make his first trip as prime minister, displaying an easy charm as he handed out live goats, seeds and fertiliser to villagers whose crops and livestock were devastated by floods.

Quieter style

Along with his credentials as an Islamic scholar, diplomats say he aims to cut the ground from under PAS by distancing himself from the urban excesses of the Mahathir era and giving priority to agriculture and public services.

His style, as expected, is quieter than that of Mahathir, who regularly ruffled feathers both domestically and internationally with his outspoken opinions and strongarm tactics.

But, according to the headline over an article by the then-editor of the New Straits Times last month, the new premier is "Nice, but there's steel, too."

The editor, Abdullah Ahmad, a Mahathir appointee, felt the steel two days later when he was sacked, ostensibly for offending Saudi Arabia in an article about authoritarian Muslim regimes while observers suggest his dismissal had more to do with internal Umno politics.

Opposition Democratic Action Party leader Lim Kit Siang acknowledged Friday the shelving of the rail deal could signal a move towards more transparent governance and the end of mega-projects, but said more time was needed to judge the new premier.

Mahathir, meanwhile, has faded from the public eye, rarely appearing in the newspapers which recorded his every move and utterance for 22 years. - AFP