Embattled Malaysia PM vows 'no surrender' as party backs him

Malaysian Prime Minister Najib Razak on Thursday defiantly rejected calls to step down over a political funding scandal as the ruling party doubled down on its support for him in the face of an uncertain electoral outlook.

Najib vowed not to give in to "traitors" seeking his removal, as he addressed the annual assembly of the ruling United Malays National Organisation (UMNO), the most closely watched in years for signs of any revolt against the party leader.

"Even though there are traitors, and no matter how many times we are pushed to the ground, there shall be no retreat, no surrender," Najib told the assembly in Kuala Lumpur.

"No retreat! No surrender!" he repeated forcefully, in a speech that drew a standing ovation from the more than 2,000 delegates clad in the party's red colours.

Najib's troubles have raised new questions over whether UMNO -- which has ruled since independence 58 years ago but faces steadily declining support -- can survive the next elections, due by 2018, with his brand now tainted.

It was revealed in July that Najib received nearly $700 million in what the government has called "political donations." Najib has resisted calls to explain the money's source and purpose.

The discovery came just as he was battling separate allegations that hundreds of millions of dollars were missing from deals involving a state firm he launched, 1Malaysia Development Berhad (1MDB).

Najib, 62, made only passing reference to the affair in his speech, saying he had briefed party leaders on the matter. He offered no new details.

Malaysia's anti-graft agency said it interviewed Najib last week over the allegations, but it also gave no details.

Both Najib and 1MDB vehemently deny any wrongdoing, but vocal critics including former strongman premier Mahathir Mohamad say Najib has abused his office to cow whistle-blowers and hobble investigations, and should face a criminal probe.