Pak Lah Hands Over Finance Portfolio To Najib. What Gives?

Prime Minister Datuk Seri Abdullah Ahmad Badawi has just made a surprise announcement that Deputy Prime Minister Datuk Seri Najib Tun Razak has been appointed the Finance Minister with immediate effect. Najib has also been made deputy chairman of Khazanah Nasional. In a politically motivated swap, the PM took over the defence portfolio.

What the rationale is for such an appointment at this juncture remains to be seen. Suffice to say that there must be some compelling political reasons for this sudden move. One sign of a truce between the big two was a remark by Pak Lah that he and Najib are 'committed' to the 2010 transition of power, although he 'may leave earlier'.

Whatever bargaining, wheeling and dealing that led to the Finance Minister's job for Najib should come out pretty soon.

Meanwhile AP reports that the move appears to be an attempt by Abdullah to gradually hand over responsibilities to Najib as part of a planned power transfer. Abdullah had said previously that he would step down in mid-2010.

He told reporters that he is now "more flexible" about when to retire, but "I won't be staying more than 2010 naturally ... Might go earlier."

The announcement comes amid calls by dissidents in the ruling party for him to retire early even as the opposition tries to topple the government.