In a stunning upset in the parliamentary elections, the ruling party, The National Front, lost its two-thirds majority, and five states, to the opposition for the first time since independence. But Badawi refused to resign, taking his oath of office for a second 5-year term.

The big winner in the elections appears to be former Deputy Prime Minister Anwar Ibrahim, once expected to succeed Mahathir, but whose popularity so annoyed his boss that he was fired, tried and sent to prison for six years. Mr. Anwar’s multi-racial People’s Justice Party won 31 seats, the biggest opposition presence in the new parliament and the worst defeat the ruling coalition had suffered in 39 years.

"It’s a new dawn for Malaysia," Anwar told a press conference. "I don’t think Malaysia will ever be the same again." The protest vote against the government, he predicted, would change Malaysia’s race-based political parties – the majority Malays, the Chinese and the Indians. While in prison he corresponded with fellow political prisoner, Lim Guam Eng, and they planned to challenge the government coalition when they were released to make it more accountable and democratic. Anwar has formed a coalition of opposition parties to the government which includes minority Chinese and Indians. His message is that he wants to see a multi-racial government. A Malay himself, he said he would treat the majority Malays fairly but also see to it that Indians and Chinese had their share.

One of the surprises of the election is that Indian and Chinese parties were expected to oppose the government’s National Front party which has governed Malaysia for 50 years; 22 years under Mahathir. But apparently some of the majority Muslim Malays, who were dissatisfied with Badawi’s leadership, also joined the opposition.

After the surprise election results, Anwar explained to reporters that the opposition did not have the power to abolish the pro-Malay New Economic Policy nationwide, but could in the five states they now control. His political ally in the opposition, Lim Guan Eng, head of the Democratic Action party, who has already been sworn in as chief minister of the rich industrial state of Penang, announced he will do away with the government’s policy, which favors Malays in awarding contracts, jobs and financial assistance, and all state government workers and civil servants will be required to publicly declare their assets. "This is a government based on democracy. . . . that believes in equal opportunity and social economic justice."

Anwar predicted that in the five opposition-governed states, the governments "will reduce race-based, affirmative action policies and begin to implement a more competitive merit-based system. The poor of all races will receive the benefits of low cost housing and education."

Many view the charismatic Anwar as a future Prime Minister. His term in prison bars him from public office until April, but then he will be free to run. Meanwhile his daughter and wife won seats in Parliament. While Anwar was in prison, his wife remained active politically on his behalf, speaking at international as well as domestic conferences. One of her lecture tours brought her to Manila.

The opposition that Anwar heads, seeks to challenge the government’s stifling control of the media, and freedom of assembly and the jailing of political opponents.

"There is an outcry for democratic reform." Anwar said "People want to see justice."