The prime minister has warned against intolerance

The Malaysian Prime Minister, Abdullah Badawi, has said he will resign on Thursday, completing the transfer of power to his deputy, Najib Razak.

Mr Abdullah handed over as president of the Umno party, which has governed Malaysia since independence, last week.

Mr Najib has again rejected allegations of the murder of a Mongolian woman as "malicious baseless lies".

Two policemen who used to be in Mr Najib's protection team are on trial for the killing of the 28 year old.

One of Mr Najib's senior aides admitted having an affair with the woman.

Earlier this week Mr Abdullah gave a strongly-worded warning to the party congress.

He said the United Malays National Organization party would perish unless it stopped suppressing dissent, jailing opponents and discriminating against Malaysia's minority Chinese and Indian races.