Malaysian Front regroups after electoral setback

Malaysia's ruling coalition tried to regroup yesterday after a shocking electoral setback that decimated its ranks and sent markets swooning over the political uncertainties ahead.

Prime Minister Abdullah Ahmad Badawi was sworn into office after his Barisan Nasional (National Front) coalition lost the two-thirds majority in parliament it had held for nearly four decades at the weekend's elections.

He got a much-needed vote of support from his United Malays National Organisation (UMNO) to stay on as both party president and prime minister at a special meeting of the party on Monday, despite calls from his predecessor Mahathir Mohamad to quit.