(AFP) Prime Minister Dr Mahathir Mohamad warned Malaysian workers today to beware foreign capitalists trying to exploit and control the world through globalisation.

Opposition leaders meanwhile demanded a halt to what they called abuse of the compulsory state retirement fund to prop up politically linked firms.

The main union movement called for a freeze on the hiring of foreign workers amid the economic slowdown.

Mahathir, in his May Day message released by national news agency Bernama, said workers should unite with the government to face the dangers of unfettered globalisation.

He said that since the end of the Cold War, capitalists "no longer need to hold back their desire".

"The intention to control and exploit the world has returned."

"They create various approaches to realise their objective. Among them is globalisation or a world without borders where their money could cross all borders to control everything," Mahathir said.

The new capitalists, he said, saw workers only as a means of profit and would switch businesses to other countries to take advantage of cheaper wages.

"Finally, those who are already rich, this new breed of capitalists, will be richer and the poor will be poorer."

Public protest

Mahathir's appeal to workers to heed foreign threats came as the normally docile union movement showed signs of restiveness with his government.

The Malaysian Trades Union Congress (MTUC), which represents 550,000 workers, is planning a rare public protest on May 12 against alleged misuse of the Employees Provident Fund (EPF).

It is angry at the EPF's action in allegedly bailing out politically connected companies.

The congress has also criticised the fund's six percent dividend paid to 9.7 million contributors last year, the lowest in 26 years, and Mahathir's decision to cut worker contributions to the fund for one year to stimulate the economy.

Lim Kit Siang, chairman of the opposition Democratic Action Party, said workers should resolve to make the RM185 billion ringgit in EPF funds directly accountable to contributors "and not just to one person, whether finance minister or prime minister."

Syed Husin Ali, president of the Malaysian People's Party, criticised the finance minister's control over EPF investments.

"Because of that millions in workers' money has evaporated," he said in his May Day message.

Malaysia is being hit by the US slowdown but the Malaysian Institute of Economic Research still targets growth of 4.0 percent this year.