The New Nation - Internet Edition

Reuters, Kuala Lumpur

Former premier Mahathir Mohamad quit Malaysia's main ruling party on Monday and urged others to follow suit in a move that could weaken its hold on power and unsettle financial markets.

The still influential Mahathir, who was prime minister and leader of the United Malays National Organisation (UMNO) for 22 years until 2003, said he would only return to UMNO after Prime Minister Abdullah Ahmad Badawi quit as leader.

It was not immediately clear whether Mahathir, 82, would form a splinter party to fight UMNO, but analysts said the move was aimed more at jolting the party to act against Abdullah and to preserve his legacy.

"He has to fight to defend his legacy, he has to fight against UMNO's attempts to erode his credibility," said Tian Chua, a leader of the opposition Parti Keadilan Rakyat (PKR) led by former deputy premier Anwar Ibrahim.