Mr Abdullah has claimed a mandate to rule despite the unprecedented election losses, but observers say he is on borrowed time. -- PHOTO: REUTERS

KUALA LUMPUR - Malaysia's ruling party will consider an open contest for president against Prime Minister Abdullah Ahmad Badawi, who has vowed to remain in power despite disastrous election results, a party leader said on Monday.

Mr Abdullah, who is president of the ruling United Malays National Organisation (Umno), has faced increasing calls to step down after leading the Barisan Nasional coalition to its worst ever performance in the March 8 polls.

Umno heavyweights have called for the scrapping of the current system, under which a candidate must have the support of nearly a third of the party's divisions before they are able to challenge the president, which is hard to do without the backing of the leadership.

Deputy Prime Minister Najib Razak, who is Umno deputy president, said Monday the party may review the system to allow an open leadership contest.

'There is no commitment to abolish the system. We have to listen to the views of the party members first,' he said.

'The final decision will be made by the supreme council (Umno's top policy making body),' he said.

Umno is scheduled to hold a leadership election in December and by tradition the party president automatically becomes prime minister.

Former premier Mahathir Mohamad and other party leaders have called for Mr Abdullah's resignation after the ruling coalition conceded five states and lost a third of parliamentary seats to the opposition for the first time since 1969.

Dr Mahathir and other Umno leaders have called for current system to be scrapped to allow Mr Abdullah to be challenged since he has refused to quit.

Mr Abdullah, 68, has claimed a mandate to rule despite the unprecedented election losses, but observers say he is on borrowed time.

Senior lawmaker Tengku Razaleigh Hamzah had said he would challenge Abdullah's leadership if he received enough support. -- AFP