PAS' move to enact strict Islamic criminal laws in a state it rules may scare away foreign investors and set back the opposition in impending general elections, analysts and politicians said today.

The northeast Terengganu state, ruled by the hardline Islamic party, approved a bill on Monday to enact Shariah laws which prescribes amputation and death by stoning for lawbreaking Muslims.

PAS said the move, which came nearly three years after it won power in the state, was aimed at restoring "God's laws" which had been trampled on and forgotten due to a colonial mentality.

PAS new leader Abdul Hadi Awang, who is also Terengganu chief minister, stoked further fears of Islamic extremism among the minority Chinese and Indians when he declared the laws could be extended to non-Muslims.

"For now, it will apply to only Muslims but when the time comes, the... laws will be extended to all non-Muslims," he said without setting a timeframe but added non-Muslims would be given time to understand the laws.

Intense opposition

Analysts and politicians said PAS' move would break-up the fragile PAS-led opposition alliance and cost it votes in the general election, which must be called by 2004 but is now widely expected next year, before Prime Minister Mahathir Mohamad steps down in October 2003.

It is also making non-Muslims, particularly Chinese who form a third of the country's 23 million people, worry about Islam in the post-Mahathir era, they said.

PAS former ally, the Chinese-based Democratic Action Party (DAP), criticised PAS arrogance in "thumbing its nose at the masses" by going ahead with the laws despite intense opposition.

"The PAS move reinforces the perception of many non-Muslims and moderate Malay voters that PAS is the greater of the two evils compared to the (ruling) Barisan Nasional," said DAP secretary-general Kerk Kim Hock.

"It will affect the opposition's struggle for democracy and human rights... and pave the way for a grand Barisan Nasional victory in the next general elections."

But Abdul Hadi retorted: "Even if we lose in the general election because of implementing this law, PAS will not feel guilty as we have done our duty (to Allah)."

DAP last year withdrew from the opposition alliance, which had gained protest votes against Mahathir's rule in 1999 polls, over PAS insistence to create a theocratic Islamic state.

First test

The first test of the law's popularity will come next week in two by-elections in northern Kedah state following the death of PAS leader Fadzil Noor.

"It will be a test for PAS to gauge to what extent the laws are supported by rural Malays but it will push away non-Malays even if they sympathises with the opposition," political analyst P Ramasamy told AFP .

He warned the move could also hit foreign investment in the state.

"It won't be soothing to foreign investors and there are already lots of concerns over this outmoded and ancient thinking," he added.

Many experts say PAS has no right to impose criminal laws which comes under the federal government's jurisdiction but PAS insists these are religious matters which come under state care.

The Shariah bill still needs to be sent to the state ruler for endorsement before it is gazetted which could take up to several months, officials said.

PAS however, may not have a chance of imposing the law as the federal government has power to block it under the constitution.

PAS tried in 1993 to impose Shariah criminal laws in neighbouring Kelantan state which it also controls but the move was vetoed by the federal government. — AFP