KUALA LUMPUR, March 21: Malaysia's ethnically mixed ruling coalition retained a key two-thirds parliamentary majority on Sunday, defeating an Islamist-led opposition after a campaign dominated by the role of Islam in a multi-faith nation.

In the first electoral test since veteran leader Mahathir Mohamad ended his 22-year rule by retiring last October, the Barisan Nasional coalition won 146 of the 219 seats in parliament.

The two-thirds majority allows Prime Minister Abdullah Ahmad Badawi's government to pass laws uncontested. At the same time, opposition parties had won only 12 seats.

The ruling alliance has formed every government since independence from Britain in 1957, and Abdullah's real test was in winning back support from the Malay Muslim majority, the bulk of whom deserted Mahathir in 1999.

Abdullah's own United Malays National Organisation (UMNO) heads the Barisan Nasional, and its main rival for the Malay vote is Parti Islam se-Malaysia (PAS).

PAS's smaller ally, Parti Keadilan, champions the cause of jailed former deputy prime minister Anwar Ibrahim, whose humiliation by Mahathir sparked a protest vote against UMNO in 1999. But the issue has faded, although there is still sympathy for Anwar.

Barisan Nasional coalition appeared close to winning all of Malaysia's 13 provincial assemblies. "This big win means a lot to us all. It represents the acceptance, the support of the people for the coalition," Abdullah said in a speech soon after declaring victory.

"It looks like we've made a lot of gains in the Green Belt," a senior government source told Reuters, referring to northern Malay-dominated states where Islam's influence is strongest.

The Barisan Nasional alliance, led by Abdullah's United Malays National Organisation (UMNO), recaptured Terengganu state from the Islamists and was close to taking Kelantan too. "It's touch and go in Kelantan," said the source, referring to the reported coalition victory in a state held by the opposition Parti Islam se-Malaysia since 1990. -Reuters