Malaysia's Islamists win key by-election

The Pan-Malaysian Islamic Party (PAS), part of Anwar Ibrahim's three-party opposition alliance, won the seat in the Southeast Asian country of 27 million people, by 2,631 votes, overturning a government majority of 628.

The only poll published during the campaign had predicted a narrow PAS victory over the ruling National Front coalition, although it did not specify a margin.

Turnout in the constituency in northeast Malaysia was almost 80 percent and the vote was held amid a heavy police presence although it passed without incident.

Najib, who will take office in March after the incumbent decided to step down early under pressure, had declared this seat a "must win" ahead of polls for top party jobs in his United Malays National Organisation, the main government party.

The vote was seen as a test of Malay Muslims, UMNO's core support, who account for 88 percent of voters here, well above the national average of 60 percent, and some of whom have shifted support to PAS, which wants an Islamic state.

The result in Kuala Terengganu came with the National Front still reeling after big losses in the March 2008 general election and after Anwar, who was once deputy prime minister until his imprisonment on sodomy charges in the late 1990s, was returned to parliament with a huge majority in August last year.

The result will not fundamentally alter the balance of power in the Malaysian parliament where the government still has a

majority of 52 seats in the 222-member house.

(Reporting by Razak Ahmad, writing by David Chance; Editing by Richard Williams)