This is the second recall motion against Mr Chen
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A second attempt to pass a recall motion against Taiwanese President Chen Shui-bian has failed.
Taiwan's opposition was hoping to get enough votes to force a referendum on the future of the embattled leader.
But they failed to get the two-thirds majority they needed for the motion to pass. A similar bid earlier this year also failed.
Mr Chen has been under pressure because of a series of scandals involving his family and close aides.
Tens of thousands of people - both supporters and opponents of the president - have taken to the streets in recent weeks to voice their views.
Troubled leader
The allegations against Mr Chen started in May when his son-in-law, Chao Chien-ming, was detained and later charged with insider trading.
Other allegations followed, against the president, his family and close aides. Mr Chen himself was questioned in August over alleged misuse of funds, but prosecutors have yet to release the findings of their investigation.
Mr Chen has faced regular protests calling for him to step down
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The president has apologised for this son-in-law's actions, but denies any personal wrongdoing and has refused to resign.
Friday's bill, submitted to parliament by People First Party legislator Lu Hsue-chang, said Mr Chen lacked the ability to govern, and accused him of corruption.
The motion needed at least 147 votes to pass, but the opposition Kuomintang party and its allies only managed to get 116 votes.
The opposition admitted beforehand that the motion was unlikely to pass, but said it hoped some members of Mr Chen's ruling Democratic Progressive Party (DPP) would back the bill. In the event, DPP members boycotted the vote in protest.
The opposition has vowed to keep up the pressure on Mr Chen, though.
Hundreds of thousands of anti-Chen protesters rallied in Taipei on Tuesday to mark Taiwan's national day - the largest protest in a month-long campaign.