Thousands of workers are expected to protest nationwide next month against a low dividend payout of 4.25 percent by a state pension fund, a labour chief said today.

"We will hold a picket at all Employees Provident Fund (EPF) offices. We want to express our displeasure," said Zainal Rampak, president of the Malaysian Trades Union Congress (MTUC), which represents more than o­ne million workers.

Zainal told AFP the MTUC decided o­n the May 21 action after a special council meeting late yesterday to discuss the low payout for 2002 to the EPF's 10.3 million contributors.

Zainal said the MTUC would call off the picket o­nly if the EPF lifted the dividend to five percent.

Lacklustre stock market

The 4.25 percent dividend, the lowest in 40 years, provoked anger as Malaysia posted an improved economic growth rate last year over 2001.

In 2001, the 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," EPF chairman Abdul Halim Ali said.

Don't picket

Meanwhile, the Human Resources Ministry has advised MTUC against staging the picket.

"There are enough avenues to express their concerns through discussions or direct negotiations.Differences in opinion can always be resolved through discussions.

"The nation is facing many challenges, including the aftermath of the Iraq war, and an uncertain future in respect of the Severe Acute Respiratory Syndrome (Sars) outbreak which will have a very strong bearing o­n tourism-related areas," its minister Dr Fong Chan o­nn was quoted as saying by Bernama .

He appealed to MTUC to look at the "larger picture" and maintain the present united front.

"Please understand the difficulty that we are facing. If there is any opinion, they should refer to us and I am sure the EPF authority will be more than willing to meet with them," he said, adding that he was also willing to meet the union representatives.