Malaysia's PM says can manage without 2/3 majority

KUALA LUMPUR (Reuters) - Malaysian Prime Minister Abdullah Ahmad Badawi said on Monday his ruling National Front coalition can manage without the two-thirds majority it has enjoyed for four decades in parliament.

Abdullah's ruling coalition lost the two-thirds majority in parliament in weekend elections that delivered the worst electoral setback to the National Front in its 50-year rule and cast uncertainty over his continued leadership.

"It's not something we worry about," he told reporters after a meeting of his United Malays National Organisation (UMNO) party and its partners in the National Front coalition.

"We can manage," Abdullah added when asked about the ruling coalition's loss of the two-thirds majority after Saturday's election.

Abdullah's deputy, Najib Razak, widely seen as his possible successor, expressed strong support for the prime minister.

"The UMNO Supreme Council hopes there will be no doubts regarding the UMNO leadership and there will be no speculation on the leadership change," Najib said.

Abdullah also sought to allay investors' worries of any shift in government policy, saying the government would ensure the economy remains healthy.

He said the government would only change policy if it was necessary. "We will ensure the policies will contribute to growth and confidence in the economy."

(Reporting by Jalil Hamid; Editing by Bill Tarrant)