Facilitated by the Barisan Nasional government policies, Malaysia’s economy started showing clear signs of recovery. In the first quarter, Gross Domestic Product (GDP) growth averaged 11.7%, the second quarterly double-digit increase since the 1997 financial crisis. While playing its role to support a full recovery, Gerakan continued to champion the cause of non-racial politics in the spirit of Vision 2020.

The party launched its “Gerakan IT 2000” project to connect the party with the younger generation of Malaysians it intends to serve. On 13th August 2000, Gerakan Youth launched its “Anak Malaysia” programme to develop a generation of united, progressive, dynamic, self-confident and innovative young Malaysians. In September of the same year, Gerakan held its “New Millennium NDC” in Penang, the first National Delegates Conference outside Kuala Lumpur in 15 years. By bringing its premier event to Penang, the Party returned to its roots and encouraged the people to assess its service to the state and nation since 1968.

During the period between 2000 to 2004, the Party had to ensure that Penang continues to deliver despite political maneuverings by the MCA. In 2003, merger talks were initiated with the MCA and both parties set up a high level committee co-chaired by the respective heads to pursue the matter.

The Party achieved a significant milestone in 2003, when it documented “Gerakan: Reinventing for the 21st Century”. This document charts the party’s future plan for the 21st Century Gerakan - the party of the future. The party aimed to project itself as a learning and intelligent party. As a result, the party established Wawasan Open University (which will provide opportunities for tertiary education for all Malaysians, especially working individuals), Sedar Institute (a public policy and socio-economic research centre which provides input for political discourse on issues confronting the nation) and Satu Academy (a training centre for new members and also for re-training existing members).

Gerakan received the approval permit from the Ministry of Higher Education in September 2006 to establish the Wawasan Open University. Its new 12 storey main campus block behind the stately Yeap Chor Ee mansion in Penang was officially opened by the then Prime Minister Dato’ Seri Abdullah Ahmad Badawi on 19th January 2008.

Dr. Lim Keng Yaik launched Gerakan’s “twin tower”, Menara PGRM 2, adjacent to the existing party headquarters in Cheras, Kuala Lumpur on 25th May 2003. The second tower was completed in 2006.

In November 2003, Dato’ Seri Abdullah Ahmad Badawi took over the Premiership from Dato’ Seri Dr. Mahathir Mohamad. Dato’ Seri Abdullah led Barisan Nasional to an astounding victory in the 2004 General Election. Gerakan won 30 out of 31 state seats and 10 out of 12 parliamentary seats contested under the Barisan Nasional ticket.

In Penang, Gerakan won all the 13 state seats it contested, as well as 3 parliamentary seats. In the new Cabinet, Dr. Lim Keng Yaik was put in charge of the bigger Ministry of Energy, Water and Communications. Gerakan was given two additional government posts: a Deputy Minister and a Parliamentary Secretary post.

In addition to the Chief Minister of Penang (Dr. Koh Tsu Koon), Gerakan has 3 State Executive Councillors in Penang (Dr. Toh Kin Woon, Dr. Teng Hock Nan and Teng Chang Yeow), and 1 each in Kedah (Fong Chok Gin), Negeri Sembilan (Woo Siak Chee), Perak (Chang Ko Youn) and Selangor (Dr. Lim Thuang Seng). Gerakan also has 3 Senators serving in the Dewan Negara (Dr. S. Vijayaratnam, Dr. Chin Fook Weng and Rhina Bhar.)

In 2005, Dr. Lim Keng Yaik announced that he would retire at the end of his presidential term in 2008. During the lead-up to the party’s 34th National Delegates Conference which was held on August 26 - 27, Dr. Lim urged party members to elect a new generation of leaders. He emphasized that leadership renewal is inevitable, and it involves the willingness “to pass the torch to the next generation.” Delegates at the 2005 party National Delegates’ Conference responded to the president’s call and picked a new Central Committee line-up. This milestone election saw a high delegates turn up of 88.6 percent, with 1,617 delegates out of 1,843 in attendance. Although Dr. Lim was challenged by his then-deputy, Kerk Choo Ting, the former successfully retained his position. Dr. Koh Tsu Koon won the deputy president’s post uncontested. The 3 vice presidents elected in 2005 were Dr. Teng Hock Nan, incumbent Dr. S Vijayaratnam and Chang Ko Youn.

Another major milestone in the history of the Party was the approval of a permit by the Ministry of Higher Education to set up and operate the Wawasan Open University (WOU), to provide distance learning opportunities based on open admission to those who missed out in obtaining tertiary qualifications in their younger days. This was the culmination of six years of efforts led by Dr Lim Keng Yaik who assumed the post as WOU’s Council Chairman.

On 22nd September 2006 at a ceremony held at the Party Headquarters, the Minister, Dato’ Seri Mustapha Mohamad, formally presented the approved permit to the Party. With that, Gerakan became the first party to obtain a permit to set up an open university. The WOU main campus and headquarters in Penang was officially launched by Prime Minister Dato’ Seri Abdullah Ahmad Badawi on 19^th January 2008. On 29th November 2008, Tun Dr. Lim Chong Eu was officially installed as WOU’s first Chancellor in its main campus, witnessed by WOU’s Council Chairman Tun Dr. Lim Keng Yaik and the Gerakan’s National leadership led by President Dr. Koh Tsu Koon.

In terms of infrastructure of the Party, the building of Gerakan Tower 2 was a major event. The completed building was officially opened by Party President Dr. Lim Keng Yaik on the morning of 7th April 2007 at a special ceremony attended by Gerakan leaders and members. Menara PGRM 2 houses service suites, corporate and professional offices, food and entertainment outlets.

After having led the party for over 26 years, Dr. Lim Keng Yaik who was adamant in handing over the baton of the Party to a younger leader, continued to plan for a very smooth leadership transition. The Party’s 2006 National Delegates’ Conference held on 2nd and 3rd September approved the provision for an Acting President as well as Acting Chairman at the state, division and branch levels, by amending Article 45.2 of the Party constitution. Prior to this amendment, the posts of President or Chairman had to be filled within 30 days of a vacancy occurring without any provision for an acting capacity.

On 7th April 2007, the Party’s National Delegates assembled in the Dewan Wawasan for a dialogue. On the next day, which was also Dr. Lim’s 68th birthday, an Extra-Ordinary Delegates’ Conference (eNDC) of the Party was held during which Dr. Lim Keng Yaik resigned as Party President and Dr. Koh Tsu Koon, the Deputy President took over as Acting President. Having served as President since being first elected in Port Dickson in 1980, Dr. Lim Keng Yaik in his farewell speech said the hand-over “marks a smooth transition of leadership to a new generation of leaders. I am confident and firmly believe that, this transition should ignite a new fervour and energy to bring Gerakan further to the forefront in the next decade. I assure you that a good Gerakanist does not just fade away. Instead we will be around for as long as we are still needed to continue to play our part as Gerakanist in our struggle to build a Malaysian nation which is fair and just for all”.

Indeed, it was one of the smoothest party leadership transitions ever seen in the country. In recognising Dr. Lim Keng Yaik’s immense and selfless contributions to the Party, the eNDC appointed him as the National Adviser of the Party with immediate effect.