Malaysian PM vows he will not resign over financial scandal

Najib is believed to retain significant support from powerful party officials within his United Malays National Organization (UMNO), despite internal grumbling after the UMNO-controlled ruling coalition suffered its worst-ever general election showing in 2013.

“I appreciate the president’s reminder that under Umno’s constitution, it is the job of the deputy to assist the president”.

Previously, Zahid said that he met the “donor” and two days ago was quoted as telling pro-Umno news portal Agenda Daily that the colossal sum came from the leadership of a government in the Middle East, and not an individual.

Najib, who chairs 1MDB’s advisory board, has denied the money came from 1MDB, which is being investigated by Malaysian and foreign agencies. UMNO is the largest political party in Malaysia and has played a dominant role in Malaysian politics since independence in 1957.

The Muslim, ethnic Malay party has dominated multicultural Malaysia through coalition governments for decades, enshrining policies that favour the Malay majority.

Mahathir insisted that no prime minister in this country had been so rich, and whatever the reason could be, he said RM2.6 billion was simply unjustified for a prime minister.

“In light of the challenges, no matter how big, I will not at all surrender”, Mr Najib told the assembly, vowing to “continue to lead UMNO towards victory”.

Muhyiddin is facing possible sanctions in Umno following his speech on Monday in which he continued criticising Prime Minister and party president Datuk Seri Najib Razak.

The uncertainty created has also hit an economy reeling from falling oil and gas prices, with the ringgit losing almost a quarter of its value against the dollar this year.

“The fall … is not due to our failure in managing the economy but was caused by external factors, among them the fall in oil prices and other commodities”, said Najib.

But he has been wounded by attacks from Mahathir and UMNO Deputy President Muhyiddin Yassin.

“Najib has all of the important party machinery in his hand to keep this assembly under control”, said Saifuddin Abdullah, a former deputy minister under Najib who moved to the opposition amid the recent turmoil.

Responding to his critics, Najib said the August reshuffle had been necessary for maintaining government unity.

“Even though there are traitors, and no matter how many times we are pushed to the ground, there shall be no retreat, no surrender”, Najib told the assembly in Kuala Lumpur.

“No retreat! No surrender!” he repeated forcefully.