Malaysia govt loses key state of Penang - source

Opposition rallies had drawn big crowds, especially Chinese and Indian voters unhappy with Abdullah's Malay-dominated coalition.

Chinese and Indians account for a third of the population of 26 million and some complain the government discriminates in favour of Malays, when it comes to education, jobs, financial assistance and religious policy.

But the final result is unlikely to be clear until at least 1600 GMT on Saturday. About 70 percent of Malaysia's 10.9 million eligible voters had cast ballots, the country's chief election official said.

An early hint of the changing political winds was a police ban on victory processions after the results. Malaysia's worst episode of racial violence, in 1969, was sparked off by just such a parade.

The poll, called before it was due in May 2009, was widely seen as a referendum on Abdullah's rule.

But the electoral system was also on trial as opposition parties accused the multi-racial Barisan Nasional coalition of vote-rigging to continue its five-decade-long grip on power.

A phone survey on election eve showed non-Muslim voters were set to deliver a protest vote against the coalition, said Ibrahim Suffian, of local market-research firm, the Merdeka Center.

It also showed signs of a protest vote among the Muslim majority, which is made up almost entirely of ethnic Malays and generally votes for the main ruling party, UMNO.

"We saw some numbers that indicate that there might be a swing among Malay voters towards the opposition," he said, adding many of Abdullah's supporters appeared to have stayed at home.