Beleaguered Malaysia PM staves off threat, for now

By Jalil Hamid and Ramthan Hussain

KUALA LUMPUR (Reuters) - Malaysian Prime Minister Abdullah Ahmad Badawi is under intense pressure from his own ranks and the opposition trying to seizing power through defections, but he may yet pull off a Houdini-like escape.

The threat of ruling party lawmakers switching camps and dragging down the government following a poor showing in elections in March is heightening Malaysia's political risk and unsettling investors.

"It's a slippery slope for anyone," said James Chin, professor of politics at Monash University in Malaysia.

"The defections are not inevitable. A lot depends on how strong Abdullah will be in coming months and how fast he moved to consolidate his party."

Abdullah, who has rejected calls to quit over his coalition's dismal performance in election, has been fighting to defuse the revolt among lawmakers.

Analysts say the lawmakers could still be coaxed to stay despite the carrots dangled by former deputy premier Anwar Ibrahim who is leading the opposition effort for a change in government.

Debate has also emerged over whether mass defections are constitutionally permissible, strengthening Abdullah's hand.

The opposition Pakatan Rakyat -- a loose alliance of Islamists, a Chinese-based party and Anwar's multi-racial group -- won a record 82 seats in the 222-seat lower house of parliament in the general elections. It needs just 30 seats to win a simple majority and form the government.