Though it is not without opposition, Malaysia's ruling coalition is expected to win convincingly the upcoming general election. It will be the first leadership test for newly appointed Prime Minister Abdullah Badawi, and the election is expected to spur spending, adding more fuel to the propeller of an economic recovery which could see GDP growth of 6 percent in 2004.

The passing of the prime ministerial baton in October from Mahathir Mohamed, who had been in power for 22 years, to Abdullah was one of the smoothest ASEAN power transition in recent times, even though it also signaled a major change of leadership.

Already in his second month at its helm, the new prime minister has made a mark on the economy, announcing a tough new stance against graft while canceling a major but controversial $3.8 billion infrastructure contract awarded by the previous government. Observers believe the cancellation could pave the way for a re-examination of other large infrastructure projects approved under Mahathir, such as the Bakun Dam project.

The ruling Barisan Nasional (BN) coalition party has essentially been in power since independence and is currently made up of 14 component parties with the United Malay National Organisation (UMNO), headed by Abdullah, the dominant party.

Although a victory by this ruling coalition is not in doubt, the new administration needs to strengthen its support among Malay voters, ahead of elections likely to take place by the end of the first quarter.