Mahathir, 92, sworn in as Malaysia’s seventh prime minister

KUALA LUMPUR, (Reuters) - Mahathir Mohamad was sworn in as Malaysia’s seventh prime minister yesterday after a stunning election comeback, defeating the coalition that has ruled the nation for six decades since independence from Britain.

Malaysia’s constitutional monarch, Sultan Muhammad V, administered the oath of office just before 10 p.m. (1400 GMT), in a ceremony carried live on state television from the palace.

Mahathir, 92, dubbed the “Father of Modern Malaysia” during his previous 22 years in power until 2003, was dressed in a traditional black “baju melayu” tunic and sarong, with an Islamic cap on his head. His return from retirement makes him the oldest elected leader in the world.

Hundreds of Malaysians lined the road leading to the palace, waving party flags and cheering. The Election Commission announced the result long before dawn and there was some consternation in the capital Kuala Lumpur over the time taken to swear in the new prime minister.

At a press conference after being sworn in, Mahathir reassured the financial community and said he would prioritise stabilising the economy and return billions of dollars lost in a graft scandal at state fund 1Malaysia Development Berhad (1MDB).

“We believe that we can get most of the 1MDB money back ... we have to increase the confidence of investors in the administration,” he told reporters.

Malaysian markets were closed and will reopen only on Monday, but overseas investors were nervous about the ouster of Prime Minister Najib Razak after a decade in office and the ringgit lost four percent in offshore trading.

An overseas Malaysian equity fund initially showed a 6 percent drop in share values but partly rebounded on Thursday.

“There should be no cause for any devaluation of the ringgit,” Mahathir said.