Prime Minister Dr Mahathir Mohamad will start work next week after returning last night from a two-month holiday abroad ahead of his retirement in October.

The veteran Southeast Asian leader was welcomed by his deputy Abdullah Ahmad Badawi at the airport upon his return from London, Bernama news agency said quoting a statement issued by Mahathir's office.

The 77-year-old leader, who appointed Abdullah as acting premier and finance minister during his absence, will resume work o­n Monday, the statement said.

Mahathir, who marks 22 years in power in July, has pledged to hand over power to the 63-year-old Abdullah after hosting an Organisation of Islamic Conference (OIC) summit from October 11-14.

Abdullah's two-month stint at the helm was seen as a rehearsal for when he replaces Mahathir, who is credited with dragging Malaysia from the commodity-based economic backwaters into the manufacturing mainstream of Asian exporters. - AFP