(AFP) Prime Minister Dr Mahathir Mohamad is now more firmly in control of Malaysia compared to four months ago, thanks to the Sept 11 terrorist attacks in the United States, a political analyst here said today.

Eric Teo, director-general of the Pacific Basin Economic Council-Singapore, said Mahathir had succeeded in presenting himself as an Islamic moderate by "deftly" handling the fallout of the attacks.

Southeast Asia's longest serving leader turned the tables on the main opposition PAS, by portraying them as allied with Islamic extremists, Teo told a forum organised by the Singapore Institute of International Affairs.

Mahathir "has succeeded very well in re-engineering Malaysian politics" after Sept 11 in favour of the ruling coalition Barisan Nasional and its main component Umno, he said.

Malaysia, a largely Muslim nation, has "actually found more political stability" now, with the forces of moderation taking the upper hand, said Teo, who also serves as a consultant and strategist for several top corporations.

Teo said since the last elections in 1999, Mahathir's support among the majority Malays had been eroded, partly due to the jailing of his former deputy Anwar Ibrahim for sodomy.

Divided electorate

The opposition has said Anwar's prosecution was a political ploy to silence a possible challenger to Mahathir, and PAS, which wants to establish a rigid Islamic state, trebled its parliamentary seats in the 1999 elections.

The next polls are not due until 2004.

"Sept 11 came as a blessing for Dr Mahathir when he reaffirmed his moderate Muslim credentials and by then managed to reconquer the moderate Muslim majority," Teo said.

In other fronts, Mahathir also has to deal with a divided Chinese electorate, but should retain the support of East Malaysians, who are expected to benefit from more economic pump-priming funds into their area, Teo said.

However, Teo said the veteran Malaysian leader "cannot use the security angle for too long" to win support.

"You have to deliver other fruits on the table. You cannot overuse this in the next 6-12 months," he said.