KUALA LUMPUR - MALAYSIA'S political landscape was dramatically transformed on Sunday after the government slumped to its worst ever election results, losing its two-thirds majority and four states to a buoyant opposition.

The stunning rebuke suffered by the Barisan Nasional coalition, which has ruled for half a century, put a serious question mark over the future of Prime Minister Abdullah Ahmad Badawi, who faced angry calls to quit.

His government was punished over rising inflation and the mishandling of racial tensions in a result that for the first time in four decades deprives the coalition of its ability to change the constitution at will.

A visibly exhausted Abdullah said the coalition could still form the next government, but conceded on Saturday's election could be a vote of no-confidence in his leadership, which has been criticised as weak and ineffective.

'Maybe. There are a lot of messages from the people,' he told reporters at the headquarters of his United Malays National Organisation party.

He said there was 'no pressure at this time' to resign, and later told the state news agency Bernama that he was not quitting any post.

Opposition leader and former deputy premier Anwar Ibrahim, who has made a spectacular political comeback since his 1998 sacking and imprisonment, was jubilant.

'It is a new dawn for Malaysia,' he said, adding it defeated the 'myth' that Mr Abdullah's Umno party, which leads the coalition, was invincible.

'I can see some leadership turmoil happening in Umno,' he said. 'They will have to reinvent by focusing on leadership change.'

Veteran leader Mahathir Mohamad, who ruled for two decades before handing over to his chosen successor Abdullah in 2003, accused the prime minister of 'destroying' the coalition and suggested he should quit.

'I think he should accept responsibility for this. He should accept 100 per cent responsibility,' he said. 'I am sorry but I apparently made the wrong choice.'

But the United States signalled it was ready to keep up close cooperation with the current government, saying Mr Abdullah remains a viable partner.

'We have seen the preliminary election results and we look forward to working closely with Prime Minister Abdullah's government on a wide range of issues of mutual interest,' State Department spokesman Kurtis Cooper said.

While Malaysia's minorities had been expected to abandon the government, pollsters said the coalition also suffered a loss of support from the majority Muslim Malays who form its bedrock.

Ms Bridget Welsh, a South-east Asian expert at Johns Hopkins University in the United States, who is here for the elections, said the result represented a 'profound transformation' for Malaysia.

'Abdullah's administration did not fulfil the promises for which he had a phenomenal mandate when he came into office, and this is the main reason he's lost a tremendous amount of support,' she said.

Ms Welsh said the challenge would now be for the disparate opposition parties to put aside their differences and work in harmony, particularly in the state Parliaments, where they will mostly form coalitions.

Barisan Nasional won 137 seats in the new 222-seat assembly.

Mr Anwar's Keadilan party won 31 seats, the Chinese-based Democratic Action Party (DAP) won 28 and the Islamic party PAS won 23.

The opposition held a total of just 20 seats in the outgoing Parliament, which Mr Abdullah won in a landslide victory in 2004 in a burst of goodwill after taking over from Dr Mahathir.

In an unprecedented result, the states of Kedah, Penang, Perak and Selangor are now in opposition hands, and expected to be governed by coalitions, while PAS extended its hold on Kelantan, which it had ruled with a thin majority.

Bernama news agency said PAS would appoint chief ministers in Kedah and Perak while a DAP figure will preside in Penang and a Keadilan chief minister will run Selangor.

Barisan Nasional last surrendered its two-thirds majority in 1969 in a result that was followed by serious racial clashes.

The government urged calm on Sunday and police banned victory celebrations or any incidents that 'can threaten national security'. Economists said the upset election results would reverberate in the stock market and could dampen investor confidence. -- AFP