Prime Minister Abdullah Ahmad Badawi won a huge mandate for his five-month leadership and a victory over Islamic fundamentalists in Sunday's elections, analysts said.

The unexpected swing, which saw the Barisan Nasional coalition taking back control of at least one of two states ruled by the opposition Islamic party PAS, was a big stamp of approval for Abdullah after he succeeded Mahathir Mohamad who retired in October after 22 years in office.

The coalition, led by Abdullah's Umno, also wiped out the Parti Keadilan Rakyat led by the wife of jailed ex-deputy premier Anwar Ibrahim, which failed to win a single seat, according to unofficial results.

"It's an overwhelming endorsement of Abdullah's leadership. It shows that the more extreme Islamic forces have been kept at bay and that the Malays are in favour of a moderate Islam," said Abdul Razak Baginda of the Malaysian Strategic Research Centre.

He said Abdullah's economic policies, including his fight against graft, as well as his Islamic credentials and moderate Islamic approach had scored points with the electorate.

Moderate Islam

Diplomats were more cautious, saying it was premature to accept that the strong win reflected a rejection of the PAS's fundamentalist Islam.

But what is clear is that Abdullah has strengthend his grip tremendously in Umno and will face no pressure in party polls due later this year, they said.

"The western world will be comfortable with the Umno moderate Islam rather than the PAS brand. It's good. It will enhance Abdullah's international standing," one diplomat said.

"But the intriguing thing is did they win because Abdullah is seen as the incorruptible Umno leader or him playing the Islam message well? It is very early days but the sense is that Abdullah appeals to the rural Muslim voters. He has got the formula right, they trust him."

Another diplomat described it as a "mixed blessing."

"It is good for Abdullah because to be an effective PM, he needs a huge mandate," he said.

"It is also good for Malaysia because it's an endorsement of the secular Islamic model and the plural system that has been successful for nearly 50 years but there is a risk of complacency. There is almost no sense of opposition anymore to keep them on their toes."

Huge boost to economy

Song Seng Wun, regional economist with Singapore-based GK Goh, said it would be a huge boost to the economy.

"It is easier to manage the economy when things are on the upswing. It reinforces investors' confidence and more importantly, it will encourage domestic investors to come in as well," he said.

"But for foreign investors to put Malaysia firmly on their map, it will still depend on the new adminstration ability to carry through its promise to be more transparent and to cut down corruption." - AFP