(AFP) Finance Minister Daim Zainuddin said today he has taken two months' leave to concentrate on paperwork and urged people not to heed speculation about his political future.

Last week's announcement of the holiday sparked renewed speculation of a rift with Prime Minister Mahathir Mohamad and of Daim's possible resignation.

The powerful finance minister told reporters he had asked Mahathir to give him time to concentrate on clearing files so development projects could go ahead.

"I need to ensure that economic activities continue to move in the midst of a sluggish economy," Bernama news agency quoted him as saying.

Daim is not attending cabinet meetings or those of the ruling party top leadership. He is still going into his office and attending parliament and other functions during his "holiday".

The finance minister said that if he did not take a holiday he would have to attend many meetings and that would leave little time for paperwork.

"If I just skip cabinet meetings, that would be unfair ... that is why I am sacrificing my leave to go to work," he said.

Ignore speculation

He urged people to ignore speculation about his action.

"It is best to ignore such speculation. If we reply, they will say it is correct and the speculation will go on."

Daim is widely considered Malaysia's second most powerful man after Mahathir. There have been frequent rumours of rifts in the past.

An opposition leader, Lim Kit Siang, has criticised what he called "political games" between Mahathir and Daim at a time when the economy is feeling the effect of the US slowdown.

The Sun newspaper in an editorial today described Daim's holiday as "somewhat odd".

Noting that rumours of Daim's departure from politics have been around for a year, it urged him to clarify his future plans.