In 2002, the Malaysian government underwent significant political consolidation. Despite Prime Minister Mahathir Mohamad's sudden announcement in June of his resignation, he will remain in office until October 2003, after which Deputy Prime Minister Abdullah Badawi will replace him as prime minister. The government's political consolidation derived partly from its war on terrorism, which allowed it to marginalize the mainstream opposition. Additionally, opposition parties themselves are in disarray. Economically, the country performed well, and unorthodox measures introduced after the Asian financial crisis have begun to pay off. In foreign affairs, Malaysia achieved good accommodation with the U.S. but suffered from hiccups in its bilateral relations with regional neighbors.
University of California Press