He was re-elected in June 1999, taking 52.4% of the vote and defeating challenger Gwanda Chakuamba who was the leader of the opposition movement. In 2002 he proposed an amendment to Malawi's constitution that would have allowed him to run for a third term, but this was abandoned in the face of demonstrations against him, as well as vigorous opposition from the legislature and courts. After serving two terms, he therefore handed over power to his successor after the May 2004 election, in which UDF candidate Bingu wa Mutharika (who was handpicked and groomed by Muluzi) was elected to succeed Muluzi as President.