Prime Minister Abdullah Ahmad Badawi announced that petrol prices would rise 41 percent to 2.70 ringgit a litre and diesel 63 percent to 2.58 Ringgit. Electrical power tariffs would go up by as much 26 percent and inflation may skyrocket. The Malaysian government decide on 3 June 2008 to revamped its old subsidy system. Malaysian Prime Minister Abdullah Ahmad Badawi is risking a political backlash after losing ground in elections in the past year. Oppositions Parties pledged to rally the nation’s poor in nationwide protests.

Middle Rocks and South Ledge are two maritime features to the south of Pulau Batu Puteh (Pedra Branca). Middle Rocks consists of two clusters of rocks situated 0.6 nautical miles south of Pedra Branca. The disputed South Ledge is to be a no-man land.  South Ledge is a low-tide elevation (in other words, it is submerged at high tide) further south, 2.1 nautical miles, of Pulau Batu Puteh.  In 1979, Malaysia published a map which showed for the first time that Pulau Batu Puteh lay within its territorial waters.  This judgement concludes the 28-year dispute with Singapore.

Microsoft Chairman Bill Gates spoke to thousands of attendees at the World Congress on Information Technology 2008 in Kuala Lumpur, Malaysia. However is heart was not here, as Gates appearing in front of them via holographic technology. A 15-foot tall, high definition holographic image of Gates was projected onto a plastic foil screen at the Kuala Lumpur Convention Center. Gates’ five minute speech, recorded in Seattle two weeks earlier.

Tun Doctor Mahathir Mohammad announced his resignation from UMNO to a cheering supporters in Kedah. Dr Mahathir, 82, said he will only come back when there is change in leadership. He said it resigned in protest against Datuk Seri Abdullah Badawi’s poor leadership. He was Malaysia’s Prime Minister for 22 years before he handpicked Abdullah for the job. Mahathir joined UMNO at its inception in 1946. After the 13 May 1969 riots, Mahathir was sacked for his letter to first Prime Minister Abdul Rahman criticising the latter’s handling the country’s administration.

Dr. Mahathir became the Prime Minister of Malaysia when Tun Hussein Onn stepped down due to health reasons. Mahathir was the nation’s first Prime Minister that came from a modest social background. The first three prime ministers were members of the royal or elite families. Dr Mahathir was the fourth Prime Minister of Malaysia. He was to hold on to this post for the next 22 years till 2003.

Malaysia published the Peta Baru (the New Map), which displayed and specified Malaysia’s territorial sea which labeled Pulau Batu Puteh (Pedra Branca) as Malaysian territory. Pulau Batu Puteh is a good 25 nautical miles from Singapore, and only 7.7 nautical miles from Johor. The new map which extended its territorial sea limit to 12 miles (19km) from its coast.

Tun Hussein Onn appointed Mahathir as Deputy Prime Minister and in a Cabinet reshuffle, appointed him concurrently as the Minister of Trade and Industry.

Mahathir rejoined UMNO and was subsquently appointed as Senator in 1973. He relinquished the senatorship post in 1974 in order to contest in the general elections where he was returned unopposed in the constituency of Kubang Pasu, and was appointed as the Minister of Education.

Mahathir was sacked from the UMNO Supreme Council, following his widespread distribution to the public of his letter to Tunku Abdul Rahman, the Prime Minister at that time about his handling of the race riots of 13 May 1969. In his letter, he had criticised the manner in which Tunku Abdul Rahman had handled the country’s administration which was believed to favour the ethnic Chinese. Mahathir was subsequently expel of his party membership on 26 September 1969. Mahathir joined UMNO at its inception in 1946.

Malaysia gained independence from Britain (National Day). Malaysia established itself as a constitutional monarchy.