Then, there's the fact that one of Malaysia's oil-rich states, Terengganu, has fallen to Pas. Pas is already talking about increasing the royalty share, last adjusted in 1976. The federal government, however, is saying it's business as usual. Abdullah also dismissed suggestions that Umno might counter Pas with a greater emphasis on the New Economic Policy, which economists say distorts the competitive environment. The NEP, which seeks to lift ethnic Malays to economic parity with the richer Chinese, is up for renewal next year.
Some analysts see the policy as a drag on Malaysia's growth.
Previously it was about ethnic imbalances. Now there are other forms of imbalances, sectoral for instance. The Malays have become more confident. Faced with such issues both Umno and Mahathir will need to take a long, hard look at the election outcome. Umno politicians who came close to losing their seats voiced concern about the party's performance.