On 8 November 1977 the Yang di-Pertuan Agong, then also the Sultan of Kelantan, declared a state of emergency in the state of Kelantan. The Emergency Powers (Kelantan) Act 1977 was passed by Parliament the next day giving the federal government implied power to govern the state. Although being part of the Barisan Nasional coalition, 12 out of 14 PAS members of Parliament had opposed the passing of the Act. Consequently, PAS was expelled from the BN coalition.[2]
During the emergency, Mohamad Nasir retained the post of Menteri Besar but with limited powers as the ultimate executive power was vested in the Director of the Federal Administration for Kelantan which was appointed by the Prime Minister under the Emergency Powers (Kelantan) Act 1977.[2] A senior civil servant, Hashim Aman (who later was appointed as Chief Secretary to the Government in 1982, only to retire in 1984) was appointed to the said position during the emergency period.[3]
In March 1978, an election was held in Kelantan, months ahead of the national election. The election was contested by PAS, UMNO and Pan-Malaysian Islamic Front (BERJASA), a new party formed by Mohamad Nasir. UMNO won the election by winning 23 seats, while BERJASA won 11 and PAS with 2 seats paving way for UMNO to form government in Kelantan for the first time.[1]
After the election, BERJASA joined Barisan Nasional and Mohamad Nasir became a Senator and Minister without Portfolio in the federal government, while Mohamed Yaacob of UMNO became the new Menteri Besar of Kelantan. Mohammed Yaacob retained the post until his defeat in 1990, right after PAS regained control of Kelantan.