A rural Malay heartland ruled by Islamic fundamentalists has become a crucial battlefield in forthcoming elections which will shape Malaysian politics.

The stakes are high in northeast Terengganu state for both the Islamic party PAS and Prime Minister Abdullah Ahmad Badawi's Umno in the March 21 vote.

PAS, which vaulted to national prominence in 1999 polls by wresting control of Terrenganu and tripling its parliamentary seats, seeks to spread its influence and prove its victory was not a false dawn.

But Umno, the linchpin of the ruling Barisan Nasional coalition, is seeking to cut short PAS' rule in Terengganu and reverse the big swing in 1999, which was attributed mainly to Malay anger over the controversial sacking and jailing of ex-deputy premier Anwar Ibrahim in 1998.

Winning back Terengganu is a major test for Abdullah, who is in charge of the party's campaign there and is seeking his own mandate from voters just five months after taking over from veteran premier Mahathir Mohamad.

"Terengganu is the main battleground. It is seen as a benchmark for Abdullah's election victory," said Abdul Razak Baginda, executive director of the Malaysian Strategic Research Centre.

Major inroads

If PAS retains control, it would point to the growing popularity of Islamic forces in line with global trends attributed to the perception that the west's war on terrorism is a war on Islam, he said.

PAS also rules neighbouring Kelantan state, which it has held since 1990, and is widely expected to retain power there.

It made major inroads into northern Kedah state in 1999 polls and is gunning for victory there - which would give it control of three of Malaysia's 13 states - but the odds are stacked against it.

In Terengganu however, it is a close battle if the number of green PAS flags or the Barisan Nasional's blue masts dotting the streets of the sleepy state capital and rural villages is anything to go by.

Since coming to power, PAS has focused on social welfare by raising financial and education aid for the poor, resolving outstanding land title issues, abolishing toll payments and cutting taxes.

It has also banned gambling, limited alcohol sales and shut down entertainment outlets.

All this has scored points with the Malays, who make-up some 95 percent of Terengganu's nearly one million people, with many making their living as fishermen and farmers.

PAS' religious card

Another big draw for the Muslim Malays is PAS's religious card. It aims to turn Malaysia into a theocratic state under Shariah laws complete with amputation and stoning to death, although such laws aren't enforced in the state yet.

"Economic development has slowed down but I hope PAS will win. They have improved the morals of our young generation," said student Masnor, in her 20s and clad in a headscarf.

Zaharah Salleh, 48, the owner of a tiny village coffeeshop, has been an Umno supporter but said she may switch allegiance.

"I am having second thoughts. PAS's rule here has clearly brought many benefits for the poor and this may not continue if Umno returns to power. It's a tough decision," she said.

But it's the opposite side of the coin for her brother Zakaria, a contractor.

"I switched support to PAS five years ago because of the Anwar issue but I am back with Umno now because PAS cannot bring rapid development to the state," he said.

Umno accuses PAS of establishing an oppressive state with its Islamic laws a threat to Malaysia's multiracial harmony, and for failing to match its spiritual focus with economic development.

Hamstrung by cut in oil royalties

PAS says it is hamstrung because the federal government withdrew some RM800 million worth of annual oil royalties, which contributed some 70 percent to state revenue when it was under Umno. It has taken the federal government to court over the matter.

The conservative party also argues its model of Islamic rule is tolerant, and promises justice for all regardless of race.

An unlicenced karaoke joint and gaming outlet operate in the state capital's Chinatown while beer and pork, considered unclean by Islam, are sold openly to non-Muslims.

PAS secured nearly 57 percent of the popular vote in the state in 1999 compared to 41 percent for Umno. It won 28 out of 32 state assembly seats, and all eight parliamentary seats. - AFP