DR. MAHATHIR STEPS DOWN
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DR. MAHATHIR STEPS DOWN

Just this past April, Dr. Mahathir received an invitation from President Bush to meet in Washington, the first state visit to the White House for a Malaysian leader. Dr. Mahathir capped a triumphal June tour of Europe with a significant meeting between himself and the Pope. At what appears to be the height of domestic influence and international recognition, reports datelined Kuala Lumpur June 25 confirm that the Prime Minister is stepping down voluntarily. He will leave office on October 25, 2003.

Dr. Mahathir, who is 76, has been in power since 1981 as leader of a modern, moderate Islamic state. Under Dr. Mahathir and the multi-ethnic UMNO Party (United Malays National Organization), Malaysia has been one of the most stable countries in Asia. Malaysia has proven to be a progressive and successful multi-ethnic state, with strong integrative forces supporting the country's ethnic Malays, Chinese and Indian populations.

Dr. Mahathir has named Deputy Prime Minister Abdullah Ahmad Badawi to succeed him. Mr. Abdullah, 62, became deputy four years ago, and is an active political figure in Southeast Asia. He is a moderate Muslim, with a degree in Islamic studies. He has served as Education Minister and Defense Minister, and is currently Home Affairs Minister.

Dr. Mahathir's handpicked successor is not expected to bring about any radical change in Malaysia's policies, at least not in the short term. Nonetheless, media pundits may well be confounded as the Malaysian political system operates to reinforce the role of the leader as a central policy maker. In effect, chances are very good that Mr. Abdullah will be as strong a policy personality as Dr. Mahathir has been over the last 21 years.

We consider it likely that Mr. Abdullah will press the moderate position within the Islamic Conference, and continue to provide balanced leadership on issues of regional importance in Southeast Asia, including matters affecting the multilateral trading system and the Doha Development Agenda.

ISSN 1492-7187, TRADE POLICY MONITOR, May-June 2002,
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