New Malaysian Prime Minister Sworn In

Najib Razak Inherits A Flagging Economy; Predecessor Resigned After Party Was Swept From Power

(AP)  Malaysia's new prime minister, Najib Razak, took the oath of office Friday, inheriting myriad challenges, including a flagging economy, a racially divided society and a moribund ruling party.

The 55-year-old, British educated Najib replaces Abdullah Ahmad Badawi as the country's sixth prime minister. Abdullah resigned Thursday - part of a power transition dictated by the ruling United Malays National Organization in the wake of massive losses in last year's general elections.

Reading the oath of office in a simple ceremony at the national palace, Najib swore to "fulfill the obligations of this post with honesty and with all my strength."

"I will pour my full loyalty into Malaysia and preserve, protect and defend the Constitution," he said, dressed in traditional Malay dress - a black tunic and loose trousers with a knee-length gold embroidered cloth tied around the waist. He was accompanied by his wife, Rosmah.

Among the dignitaries present were Abdullah, his wife, and former Prime Minister Mahathir Mohamad and his wife.

Najib, who is expected to announce a new Cabinet lineup next week, faces a mammoth task ahead in healing the country's politics, society and economy, which is expected to shrink by 1 percent in 2009.

He also faces a belligerent opposition, which accuses him of corruption in a deal to buy French submarines when he was defense minister. It has also alleged he was linked to the killing of a Mongolian woman, who was the estranged lover of a close friend. Najib has denied the allegations as "malicious lies."

"Unlike Abdullah who inherited a battleship in full steam, Najib is taking over a battered ship and this may explain why he seems solemn and thoughtful rather than celebratory," wrote analyst Joceline Tan in The Star newspaper.

But front pages across Malaysia were reveling.

"It's his time," the New Straits Times said in a full page headline that showed Najib in a dark suit. "Enter Najib," said the Star.

Najib's rise to the premiership is as much a story of Abdullah's political decline.

Abdullah took office in October 2003, riding a huge wave of popularity as he replaced Mahathir Mohamad, a manipulative and sharp-tongued leader who brooked no opposition or dissent during 22 years in office.

In contrast, the soft-spoken Abdullah captured the hearts of Malaysians with promises of reforms in the judiciary, police force and civil service. He pledged greater political freedom and more political space for critics.

Most promises fell by the wayside although he ushered in limited freedom of speech.

Conservatives in his party say that was his undoing as it bolstered the newly resurgent opposition led by former Deputy Prime Minister Anwar Ibrahim.

In the March 2008 elections, the ruling National Front coalition suffered its worst results in the 51 years it has been in power. It failed to get a two-thirds majority for the first time in 40 years, conceding 82 seats to the opposition in the 222-member Parliament. It also lost an unprecedented five states.

The loss was largely a result of ethnic Chinese and Indian minorities switching allegiances to Anwar as they chafed against decades-old policies that give preference to majority Malays in jobs, education and business.