KUALA LUMPUR, June 25: Veteran Malaysian leader Mahathir Mohamad will step down as prime minister and be replaced by his deputy Abdullah Ahmad Badawi next year, his ruling party announced on Tuesday.

Party secretary general Khalil Yaacob said in a national broadcast that Mahathir’s resignation would take effect after a summit meeting of the Organization of the Islamic Conference here on October 24-25, 2003.

This time-frame would ensure an orderly transition of power and allow Mahathir to fulfil his commitments, which include hosting the Non-Aligned Movement summit in February as well as the OIC meeting, he said.

Mahathir “has decided to step back and relinquish all his (political) posts,” Khalil said, ending the uncertainty which had gripped this normally-stable Southeast Asian nation since the weekend.

The 76-year-old leader, who has been in power for 21 years, stunned Malaysians on Saturday with a tearful resignation announcement at the end of his ruling United Malays National Organisation annual assembly.

While the nation watched on live television, he was hustled from the podium into a private room by horrified party leaders, and Abdullah returned to say that Mahathir had agreed to stay on.

Mahathir himself said nothing further publicly, however, and flew off on holiday to Italy the day after plunging the nation into political turmoil. He is due to return on July 3.

Khalil read his statement clarifying Mahathir’s future at the party headquarters under a huge portrait of the veteran leader and flanked by Abdullah and other party leaders.—AFP