A low dividend payout of 4.25 percent for a 40-year pension by a state pension fund last year has provoked anger among its 10.3 million contributors, officials said today.

"Obviously we are not happy. We had hoped it will be five percent to reflect last year's improved economic performance," said Shafie B.P. Mammal, (left) deputy president of the Malaysian Trades Union Congress, which represents more than o­ne million workers in the country.

Shafie said a special council meeting would be held tomorrow to discuss what action workers would take to express outrage against the Employees Provident Fund (EPF).

"Picketing by workers is o­n the list. But we will decide o­n Monday," he told AFP .

In 2001, EPF declared a dividend of five percent despite the economy posting a marginal growth of 0.4 percent. In 2002, the country recorded 4.2 percent growth.

The EPF attributed the low dividend to a tough investment environment.

"The dividend rate declared (for last year) reflected the difficult investment environment of a low interest rate regime for the last four years as well as a lacklustre stock market," Abdul Halim Ali, EPF board chairman was quoted as saying by the Edge business newspaper.

Lim Kit Siang, chairman of the opposition Democratic Action Party called for a nationwide protest against the low dividend.

EPF should have been able to declare at least 5.43 percent for 2002 if not for the high provision of 2.14 billion ringgit (563 million dollars) for paper losses in equity last year, he said.

Lim said workers should demand greater accountability and transparency of the EPF's stewardship of the 203 billion ringgit under management. - AFP