Protesters waved their fists and shouted ``reform'', while passing cars honked in rhythm with the opposition rally cry.

Hundreds hopped on motorcycles, their helmets over their white caps donned for Friday afternoon prayers, and headed towards parliament, where Prime Minister Mahathir Mohamad was unveiling the 1999 budget.

But they never made it. Dozens of riot police moved in and dispersed the crowd with water cannon.

Police had warned those who joined the anti-government march could face arrest under the Internal Security Act, which allows indefinite detainment without trial.

The demonstrators are supporters of jailed dissident Anwar Ibrahim, ousted as deputy prime minister and finance minister on September 2.

City police chief Kamaruddin Ali said that no one had applied for permit to hold today's demonstration, as requiredby law in this Southeast Asian country.

``We charged... people on Wednesday for illegal assembly and will not hesitate to do the same again,'' Kamaruddin was quoted as saying in today's editions of the Star.