The 1999 elections reinforced several challenges to Mahathir 's leadership:-
First, there was a backlash over Mahahir's ill treatment of Anwar Ibrahim
Second, his party UMNO suffered electoral reverses to an Islam fundamentalist party - Pan - Malaysia Islamic Party - in Kelantan, Terengganu and Kedah. Nationally, the UMNO won 71 seats compared to 94 in 1995.
Bowing to the challenge, Mahathir declared in mid 2002 his intention to quit as prime minister in October 2003 , well before the election in 2004 .
UMNO chose the party ' s first vice president, Ahmed Badawi as prime minister.