KUALA LUMPUR, Feb 15 (Reuters) - Malaysian police broke up a small anti-government protest on Friday, arresting two people after a scuffle, as the country braced for a fresh flurry of protests ahead of elections next month.

In a sign of the administration's sensitivity to street protests in the run-up to the March 8 poll, about 100 police turned out to disperse a group of just 15 opposition party supporters outside the Malaysian king's palace.

They had gathered at the imposing yellow-domed palace to urge the king to alter what they said were unfair electoral rules.

The monarch, currently abroad on holiday, is a symbolic head of state, but opposition parties have chosen to lobby him because they say they distrust the Election Commission and the ruling coalition, which has effectively governed since independence.

"The Election Commission lies," said a large yellow banner held aloft by protesters outside the palace. A fight broke out when they defied orders to disperse, but no one was injured.

The Barisan Nasional coalition is widely expected to regain power in the March 8 poll, though with a reduced majority.

The commission denies the electoral system favours Barisan Nasional, but opposition parties say electoral boundaries are drawn unfairly and electoral rolls stuffed with "phantom voters".

Though small, the protest points to an unruly campaign, with another planned for Saturday by a Hindu rights group, which last November brought more than 10,000 ethnic Indians onto the streets of the capital in an anti-government rally.

Many Indians accuse Barisan Nasional, a multi-racial group dominated by ethnic Malays, of racial discrimination.

(Reporting by Bazuki Muhammad; Writing by Liau Y-Sing; Editing by David Fox)