Timor-Leste police have fired tear gas at protesters who rallied against a plan to buy new official cars for MPs, which triggered anger in one of the poorest nations in South-East Asia.

More than 1,000 people, mostly university students, rallied near the National Parliament in Dili to protest against the plan approved last year to procure cars for each of the 65 members of parliament.

The plan was the latest flashpoint in the resource-dependent country, where more than 40 per cent of its population lives below the poverty line, according to the World Bank.

"We ask for the parliament members to cancel the decision to purchase the (Toyota) Prado for the sake of self-improvement," said Leonito Carvalho, a student from Dili-based private university Universidade da Paz. "Otherwise, we will r

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