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S Krishnasamy, 61, was shot dead on Friday in the office of his party, the Malaysian Indian Congress (MIC), in the southern city of Johor Baru.
Police and the party said the motive behind the attack was not clear.
"I cannot say whether it has something to do with politics, a private matter or in connection with the constituency. An elected representative has many connections," MIC president S Samy Vellu was quoted by state news agency Bernama as saying.
Politics is in turmoil among the minority ethnic Indian population after more than 10,000 Indians staged an anti-government protest in November to complain of racial discrimination.
The activists accused the MIC of selling out their interests.
Vellu said some ethnic Indians were trying to show his party in poor light and that the elected representatives were not working for the benefit of the community.
"When people think we are no longer useful, perhaps a shoot- to kill can occur," Samy Vellu said.
MIC is a senior member of Prime Minister Abdullah Ahmad Badawi's 14-party ruling coalition. Abdullah is widely expected to call snap elections in the coming weeks.

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While in India he fooled all Indians by saying no visa restrictions enforced for Indians. Now, time for Samy Vellu (stooge of Malaysian Islamic regime) to go.
Samy Velu,you stole the little wealth allocated to the Indians by the government- the Telecom Shares,your policy all this while has been to give pea nuts to the masses and you will take the lion share so that the Indians will always be subservient to you and you can act like a 'jaminthar'.You plant gangsters in meetings so that no members dare to question your wrong doings.Don't over stay your welcome,don't say that you still have allot of unfinished work for the community,you have been at the helm for 30 years,how many more years do you need? For God sake please resign, if not, you will not have the opportunity to regret!!!We don't need a party like MIC, "toothless mouse'.Without MIC, any allocation from the government, if any, will go to the deserving poor Indians and not to MIC leaders.
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