KUALA LUMPUR: Malaysia Prime Minister Abdullah Badawi has warned rights activists to abide by the law or face tough action as opposition groups plan to push ahead with a street rally on Saturday calling for free and fair elections.

Wrapping up a three-day annual assembly of the United Malays National Organisation (UMNO), Mr Abdullah, the party president, issued a stern warning to rights activists who have not been granted a police permit to demonstrate.

On the issue of fuel subsidies, Mr Abdullah reiterated that the government could not afford to continue with the practice.

As crude oil prices reach US$100 a barrel, he said subsidies would cost the country US$11 billion a year.

But he promised that lower-income groups would continue to enjoy subsidies under a restructured system.

He said: "I think Malaysians are reasonable people, they will understand. To insist on same rate for everybody – the poor and the rich – to me, that doesn't seem right."

But on the question of when the general election would be held, Mr Abdullah remained tight-lipped.

It is widely expected to be held by early next year.

He reminded UMNO members not to stir up sensitive racial and religious issues in the multi-ethnic country.


- CNA/so