The opposition Islamic party PAS today predicted that general elections would be held next month, before Prime Minister Mahathir Mohamad retires in October.

An election is due only by the end of 2004, but there has been widespread speculation that it will be held early.

Some observers expect the vote to come soon after Mahathir hands over to his deputy Abdullah Ahmad Badawi, however, not before.

PAS vice-president Mustafa Ali told the official Bernama news agency: "We are ready at any time. We expect it (general election) to be held this September."