KUALA LUMPUR—Malaysian Prime Minister Muhyiddin Yassin has handed his resignation to the king but will stay on as interim premier, the palace said on Monday, after months of political turmoil culminated in the loss of his majority. Muhyiddin’s hand had been weakened by months of infighting in his coalition and it is unclear if the developments will ease Malaysia’s political crisis after a tumultuous 17 months in office for the prime minister. The palace said an election was not the best option and King Al-Sultan Abdullah was happy for Muhyiddin to stay on as caretaker. “The king has received the resignation letter of Muhyiddin Yassin and the entire cabinet effective immediately,” it said in a statement on Facebook. “Following the resignation, the king is pleased for Muhyiddin to fill the role as caretaker prime minister until a new prime minister is appointed.” Later, in a nationally televised speech, Muhyiddin said …