Malaysia seen delaying election, eyes new cash handout - sources

07/06/2012 - 5:23

KUALA LUMPUR (Reuters) - Malaysian Prime Minister Najib Razak is likely to call elections from October onwards as he looks to win over voters with another round of cash handouts and a generous budget, senior government sources with knowledge of the issue told Reuters.

Delaying elections from a widely anticipated June date signals Najib is concerned the ruling National Front may struggle to regain its two-thirds majority in parliament as the trade-reliant economy's growth slows amid the euro zone debt fallout.

About 2.6 billion ringgit ($821 million) was allocated to poorer households earlier this year, leading the opposition to accuse the government of vote-buying ahead of what could be the most fiercely contested polls since Malaysia gained independence in 1957. The new handout under consideration would be distributed to over 5 million households ahead of the Muslim festival of Eid al-Fitr in August, the sources said.

(Reporting by Niluksi Koswanage; editing by Stuart Grudgings)