Malaysia govt says race tension may cause poll dip

By Mark Bendeich

PUTRAJAYA, Malaysia (Reuters) - Malaysia's racial tensions could contribute to a "slight dip" in support for the government at the next election, but the campaign is unlikely to spark race riots, the deputy premier said on Monday.

Malaysia appears to be heading into one of its most racially charged election campaigns for many years. Minority ethnic Indians and Chinese complain of unequal treatment at the hands of a government dominated by majority Malays.

Rising food and fuel costs are also hot issues, setting the scene for a difficult campaign for the ruling coalition, which is still considered certain to win but with a reduced majority.

Deputy Prime Minister Najib Razak told Reuters that a dip in support for the coalition, Barisan Nasional, would be acceptable, given it had won a record victory at the last election in 2004.

"We can accept a slight dip as compared with 2004," Najib said in an interview.

"Realistically in any parliamentary democracy, you've got to have your ups and downs and you cannot be at an all-time high two elections in a row. I think that would be too much to expect."

But he sought to play down the role of racial tensions at the next election, which he said would be called "soon". Though not due until 2009, political experts and economists expect them next month, before the economy begins to slow and inflation picks up.

"I don't think that it's that significant," Najib said when asked about the likely impact of racial tensions on the campaign.