NAJIB SWAPS ABDULLAH AS FINANCE MINISTER!

Malaysiakini has reported the most interesting news for today:

Malaysiakini report- Najib takes over as finance minister

Prime Minister Abdullah Ahmad Badawi today said he would pass on his finance portfolio to his deputy Najib Abdul Razak.

MCPX

Abdullah told a press conference this afternoon that Najib would take over as finance minister with immediate effect.

The prime minister, who has held the post of finance minister since 2004, said he had informed the cabinet about the decision.

Both leaders also reaffirmed their commitment to the 2010 power transition plan.

There has been increasing pressure for Abdullah to quit earlier but it now appeared that Najib is still committed to the agreement for a power transfer in two years' time.

The Star Reports a bit more than Malaysiakini:

PUTRAJAYA: Datuk Seri Abdullah Ahmad Badawi announced he would be handing over the Finance Ministry portfolio to his deputy. In a direct swap, Abdullah would take over the Defence Ministry from Datuk Seri Najib Tun Razak.

The Prime Minister announced this at a press conference Wednesday.

The swap of duties is to take effect immediately.

The move is part of the agreed transition plan which both Abdullah and Najib reaffirmed on Wednesday.

In July, Abdullah and Najib agreed to the transition plan for the Prime Minister to hand over power to him in 2010. The plan was endorsed by the party supreme council later.

More to come.

Interesting development... I wonder what is the motive behind it?

UPDATES: From Malaysian Insider

KUALA LUMPUR, Sept 17 - In a minor Cabinet reshuffle today, Prime Minister Datuk Seri Abdullah Ahmad Badawi named his deputy Datuk Seri Najib Abdul Razak as finance minister. Abdullah, who was the finance minister, will take over Najib's defence ministry portfolio. He said he may step down sooner than 2010. The swap was announced after today's Cabinet meeting.

Najib has also been made deputy chairman of Khazanah Nasional. Today's announcement comes amid widespread speculation over a transition plan hammered out between the country's top two leaders for Najib to take over power in 2010. Said Abdullah today:' "The transition is flexible. It is up to me. It will be no later than 2010 but it may be sooner." Abdullah added that he would also offer himself as a candidate to be Umno president while Najib would stand as deputy president at this year's Umno elections. Najib, who was also at the press conference, said: "I would like to thank the prime minister for his confidence. "Giving me this post shows he is magnanimous, it shows his sincerity in picking me as his successor." Sources said Datuk Seri Nazri Aziz is also expected to be named de facto law minister to replace Datuk Zaid Ibrahim, who quit this week over the Internal Security Act (ISA) arrests of DAP leader Teresa Kok and two others.

Updated Malaysiakini report:

Prime Minister Abdullah Ahmad Badawi today said he would pass on his finance portfolio to his deputy Najib Abdul Razak, while he takes over as defence minister.

MCPX

Abdullah told a press conference this afternoon that the swap in the cabinet posts will take effect immediately.

The prime minister, who has held the post of finance minister since 2004, said he had informed the cabinet about the decision.

Abdullah also said that he may step down earlier than 2010 depending on Najib's performance.

However, both leaders nevertheless reaffirmed their commitment to the 2010 power transition plan.

Abdullah added that both he and Najib will be defending their respective posts as Umno's top two leaders in the party polls this December.

Najib, who was also present at the hastily-organised press conference, when asked to comment, said: "We have agreed. I'm leaving it to the party. We are offering ourselves to the party and I hope that they will accept."

There has been increasing pressure for Abdullah to quit earlier but it now appeared that Najib has stitched a deal with his boss to placate the demands from the Umno grassroots.

Both men have been at the centre of a political maelstorm, caught by bitter infighting in their Umno party amid a mounting challenge from Opposition Leader Anwar Ibrahim who has promised to form a new government soon.

Anwar a 'threat to nation's economy'

Last week, Najib backed away from a power transition pact made with Abdullah in July, whereby his 68-year old boss would hand over to him the premiership and Umno presidency in June 2010.

Observers say the latest move by Abdullah was to assure Najib that his accession to the top post in the country was assured and also to deflect a campaign led by ex-premier Dr Mahathir Mohamad to unseat him from the Umno presidency.

Abdullah also touched on Anwar's request for a meeting to discuss a power transfer to the opposition Pakatan Rakyat as he claimed to have enough defectors to form a new government.

He said that letter which was sent by Pakatan leaders did not mention about power transfer.

The prime minister also described Anwar as a "threat to the country's economy as well as possible threat to security".

"I will not indicate what plan I have," when asked if he would take action against Anwar.

Najib has also been appointed deputy chairman of top government investment arm, Khazanah Holdings.