By Rozanna Latiff
KUALA LUMPUR, July 11 (Reuters) - Voters in Malaysia's southern state of Johor will cast their ballots on Saturday in a regional election that could test the unity of Prime Minister Anwar Ibrahim's coalition government, as frictions over reforms, ethnic issues and the economy fuel talk of an early national poll.
The state election will not directly impact Anwar's majority in the national parliament, but the move by a key coalition partner to run an independent campaign could test his resolve if the result exacerbates simmering tensions within the federal alliance.
Anwar, in office since 2022, has been credited with restoring stability after years of political infighting.
His administration, however, is made up of disparate blocs including a one-time rival coalition, the formerly dominant Barisan Nasional (BN), which has chafed at playing second fiddle to Anwar's Pakatan Harapan alliance.
Frustration has grown among Anwar's progressive allies over the slow pace of reforms, while ruling coalition parties have often clashed over how to tackle racial and religious issues in the multi-ethnic, Muslim-majority country.
Though national elections are not due until 2028, Anwar said in May he would consider calling a snap poll if the internal divisions continued to widen.
BN has governed Johor since 2022 and chose to seek re-election without backing from Pakatan.
BN is seen by analysts as the frontrunner but is facing a tough challenge from Pakatan as well as opposition bloc Perikatan Nasional, led by the resurgent Islamic party PAS.
The election in Johor, which borders Singapore, is also being closely watched by investors. The state is an emerging regional financial hub, attracting billions of dollars in data centre and AI-driven investments in recent years with progress underway on a Johor-Singapore special economic zone.
But development has been uneven with many Johor residents squeezed by rising property and living costs driven partly by proximity to its wealthier neighbour.
The poll will also mark the electoral debut of Bersama, headed by Anwar's protege-turned-rival and former economic minister Rafizi Ramli, which has attracted a wave of defectors from Pakatan.
The Johor poll comes three weeks before an election in Negeri Sembilan state on August 1 that will serve as another test of federal stability. Pakatan is expected to contest all 36 seats, having won 17 seats at the last state election.
(Reporting by Rozanna Latiff; Editing by John Mair and Lincoln Feast.)
