Malaysia PM says to run in party polls in Dec

KUALA LUMPUR (Reuters) - Malaysia's prime minister said on Thursday he would seek re-election as leader of his political party, dismissing talk that he would quit after his ruling coalition fared badly in elections earlier this month.

Abdullah Ahmad Badawi said he was ready to face challengers for the presidency of the United Malays National Organisation (UMNO) which he has led since late 2003.

"If they have the support and they want to challenge me, I have to face," he told reporters. "I'm not going to run away."

UMNO, the dominant party in the ruling Barisan Nasional coalition, will hold internal party elections during its annual assembly from December 16 to 20, he said after a party meeting.

By tradition, the UMNO president is the prime minister.

Barisan suffered its worst setback in its near-unbroken 50-year reign since independence in this month's election. It lost its two-thirds majority in federal parliament and surrendered an unprecedented five states to the opposition, including its industrial heartlands. Malaysia has 13 states.

In another blow to Abdullah's authority, UMNO on Thursday threw its support behind a politician picked by a Malay sultan to lead the oil-rich northeastern state of Terengganu.

Barisan retained power in Terengganu but the sultan there refused to accept incumbent chief minister Idris Jusoh, who was backed by Abdullah.

On Sunday, the palace named its own candidate, only to be snubbed by Abdullah who said that it was unconstitutional.

"It's not a question of losing face," Abdullah said on Thursday. "We cannot go on disputing."

Malaysia has nine sultans who take turns ruling for five years as king. The current king is the Terengganu ruler.