Malaysian Prime Minister Abdullah Badawi, under political pressure since his ruling party's poor election showing, says he will step down next March.

Abdullah's decision may allow his deputy Najib Razak to succeed him, the Financial Times reported.

The report said that Abdullah's efforts at economic reforms and set up anti-corruption measures met with opposition within his own United Malays National Organization party.

The 68-year-old Abdullah heads the 13-party Barisan national coalition.

Abdullah's political headaches began after elections in March in which his party lost its two-thirds parliamentary majority. The opposition also took control of five of the country's 13 states.