(AFP) - Veteran Asian leader Dr Mahathir Mohamad celebrates his 76th birthday tomorrow, riding a new wave of support generated by fallout from the terror attacks on the United States.

Fear of Muslim militancy in multi-cultural Malaysia has riven the opposition and made Mahathir's moderate form of Islamic rule seem a safe haven in a frightening new world, analysts say.

Mahathir, who has served as prime minister for 20 years, faced growing competition from the hardline Islamic Parti Islam SeMalaysia (PAS) after sacking his popular deputy Anwar Ibrahim in 1998.

PAS trebled its parliamentary seats in 1999 elections at the expense of Mahathir's ruling party, which it accuses of being corrupt and un-Islamic, but has been forced onto the defensive by the Sept 11 attacks.

Within weeks, the ethnic-Chinese-based Democratic Action Party (DAP) had split from an opposition alliance with PAS, saying it could not agree with PAS's plans to impose an Islamic state if it came to power.

Arrests of alleged Islamic militants, which had begun before the terror attacks, intensified and some 18 people, mainly members of PAS, have in recent months been ordered detained without trial for two years.

Political dissent

They are alleged to be Afghan-trained members of a so-called Malaysian Mujahedin Group (KMM), which is accused of plotting the violent overthrow of the government, while critics say Mahathir is merely using the "terrorism" bogey to crush political dissent.

"Mahathir appears stronger now. The public perception is that only he can ensure stability in the country," Ronnie Liu, DAP publicity chief told AFP .

Liu said the public first doubted Mahathir's claims of Islamic militant activities by the KMM, as no evidence has been presented.

"But after the Sept 11 attacks, the people conveniently linked it to KMM and say Mahathir had done a good job," he said.

"People now say he should be around to ensure stability and prevent chaos."

Malaysian Trades Union Congress President Zainal Rampak agreed that Mahathir's popularity rose after the terror attacks.

"He is seen to have crushed Islamic extremism in multiracial Malaysia," he said. Some 60 percent of Malaysians are Muslims, while there are large minorities of non-Muslim ethnic Chinese and Indians.

PAS acknowledges that Mahathir gained political mileage out of the tragedy in the US, but party youth chief and lawmaker Mahfuz Omar said it was only a temporary phenomenon.

Huge support

Mahathir had won huge support in his early days in power because people believed he would crush corruption and establish a transparent government, but his popularity had begun to wane before Sept 11, Mahfuz said.

"He led the people to adore him but we know now that his policies failed to bear fruit."

While Mahathir's popularity might now be resurgent, it would not last, and PAS did not depend on any particular incidents or issues for influence but on its long-term commitment to serve the people, Mahfuz said.

"Our strength is with our grassroots. My birthday message to Mahathir - step down before you are condemned by your race and religion."

Mahathir, Asia's longest-serving elected leader, has said this will be his last term in office, but not all analysts are convinced that he will in fact step down before the next elections due in 2004.

The prime minister, whose favourite song is "I Did It My Way", has declined to set a retirement date.

His supporters say his policies changed Malaysia from a sleepy backwater into one of Asia's more successful developing countries.

Critics say he bent independent national institutions to his will, stifled dissent and tolerated croynism.