Although it is politically prudent for the DAP and PKR to form an effective electoral pact, both parties will have to first address a thorny issue - PAS.

Due to its past experiences, the DAP has laid down an uncompromising stance that it would not cooperate with PAS in the coming general election, not due until 2009, if the Islamic party does not drop its Islamic state agenda.

DAP has also declared that it would severe its ties with PKR if the party backs PAS' 'Islamic State' agenda. This had somewhat pushed PKR into a corner.

While it is a multi-racial party, PKR is dominated by Malays and relies heavily on Malay-Muslim votes for support.

From now until the next general election, PKR must find a compromise with the DAP and PAS.

When DAP National Chairperson Karpal Singh insisted at a recent rally in Penang that his party would only cooperate with PKR based on religious freedom enshrined in the constitution, it was also clear that the party does not want to be seen as a political partner to PAS.

The DAP knows, better than anyone else, that being seen to be close with PAS would spell political suicide as MCA and Gerakan would jump at the first opportunity should DAP make a 'wrong move'.

Religious freedom

It is highly likely that the DAP will go alone in the coming general election to safeguard its interests.

"We will only work with PKR based on the constitutional principle that allows freedom to other religious beliefs. If PKR were to support PAS on the Islamic State issue, then we would go it alone in the coming elections.

"We do not want to suffer again," Karpal told the massive 6,000-crowd at the rally.

The DAP leader recalled that his party had suffered massive setbacks in previous general elections when it was seen to be cooperating with PAS on seat allocation.

After nearly capturing the Penang state government in 1990, DAP lost ground in the 1995 and 1999 general elections. Its electoral reverses were so bad that DAP lost its parliamentary opposition leadership to PAS in 1999 when party heavyweights Lim Kit Siang and Karpal both lost their parliamentary seats.

Political observers noted that these setbacks were caused by DAP tacit electoral understanding with PAS and Barisan Nasional's effective campaign to instilling fear among voters about the Islamic danger posed by the pact.

In 2004, DAP's successful campaign to distance itself from PAS and assuaging fears among the voters resulted in the party winning 12 parliamentary seats and bringing Lim and Karpal back to Parliament.

Due to this bad experience, DAP has adopted a cautious approach in forming pacts with any political party with links to PAS.

Anwar's assurance

In an immediate response, PKR advisor Anwar Ibrahim, who also spoke at the rally, assured Penangites that his party would only work with PAS if it was prepared to uphold the country's present constitution.

But he stopped short of calling on PAS to drop its Islamic state agenda, asserting that the constitution had allowed equal freedom to all religions in this country and a multi racial party such as PKR was duty bound to uphold it.

"We will uphold the constitution and form electoral pacts only with parties that do so," he said to thunderous applause from the crowd.

As a non-Malay majority state, Penang is an interesting place to watch in the coming general election in the event that there is a DAP-PKR pact .

It has a strong DAP base - both Karpal and Anwar hail from Penang. PKR's only parliamentary seat, Permatang Pauh, held by Anwar's wife Dr Wan Azizah Wan Ismail, is in Penang.

Prime Minister Abdullah Ahmad Badawi is also a Penang boy. Due to Penang's political significance, both DAP and PKR are aware that their pact could ill afford to be shot down by the BN.

An open electoral understanding, let alone cooperation, with PAS could dealt the death blow to both DAP and PKR, in Penang, at least.