The Razak family dynasty cannot support anything non-Umno, said political analyst James Chin.

Based on this, he believes it is unlikely that Nazir Razak would form a new political party.

"I do not think Nazir can form a political party. It will be seen as a direct attack on his brother  (Prime Minister) Najib (Abdul Razak)," he told Malaysiakini .

Nazir and Najib are sons of second prime minister and former Umno president Abdul Razak Hussein.

Chin, who is University of Tasmania's Asian Institute director, was responding to a report in Asia Sentinel that Nazir, who heads the CIMB bank, would form a new party .

The report claimed that Nazir approached former deputy education minister Saifuddin Abdullah, one of Umno's few liberal-minded leaders, to lead the new party.

Sources have also disclosed to Malaysiakini that Nazir is actually setting up a NGO as opposed to a political party.

"He will release a media statement on this soon to clear the air," said one of them.

Meanwhile, Chin ( photo ) also noted how the third force in Malaysian politics failed to work in the past.

"If a new political party is formed, as speculated, then it will try to 'take away' middle ground from both BN and Pakatan Rakyat.

"If that is successful then they have to decide which side to support.

"The two coalition system in Malaysia will stay for a while, no change soon," he added.