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The crowd chanted "PM resign" as speakers criticised Prime Minister Abdullah Ahmad Badawi for last month's 41 percent fuel price hike, which has deepened his unpopularity after disastrous March general elections.

Anwar, who is fighting back against new accusations of sodomy -- the same charge that saw him jailed a decade ago -- has said he is poised to seize power with the help of defecting government lawmakers.

The marathon protest, which Anwar was due to address later, went ahead at a stadium in the suburbs of Kuala Lumpur despite a police ban and fears authorities may use force to break up the gathering.

"The recent price hikes have had a devastating effect on the lives of the people, and worst-hit have been the poor," Selangor state chief minister Khalid Ibrahim told the crowd.

"We are calling on the government to remove the hikes and end the people's suffering or face being thrown out by the people."

The stadium was ablaze with demonstrators wearing T-shirts in red, the colour of the protest movement. Many sported bandanas with the slogan "No Price Hike" as they watched performances and listened to speeches.

"The people are sufferring and I don't know how long we can go on like this," said 40-year-old housewife P. Kalaiselvi, who came with her husband and four daughters.

"We would like the government to hear our problems and to help us but they are only helping themselves."

Despite the fears of a crackdown, security was light and the only ruckus was triggered when the lead singer of a rock band performing on stage exposed his backside in a political gesture.

The conservative crowd which included many families was enraged, and pelted the band with empty water bottles before organisers apologised and restored calm.

The fuel price hike has heaped pressure on Abdullah after the March polls which handed the opposition its best ever result -- a third of parliamentary seats and control of five states.

Anwar is now embroiled in a political battle with deputy prime minister Najib Razak -- Abdullah's heir apparent -- trading serious allegations that have deepened Malaysia's political crisis.

A week ago an aide to Anwar filed a police report claiming that the 60-year-old opposition leader had sodomised him, causing Anwar to flee to the Turkish embassy, saying he feared for his life.

The claims threatened his stunning political comeback, staged after he was sacked as deputy premier in 1998 and jailed on sodomy and corruption charges he said were orchestrated by the government.

In the next sensational turn of events, a private investigator made allegations linking Najib to a Mongolian woman murdered in 2006. A close friend of Najib is on trial for abetting the murder.

At a press conference organised by Anwar, Balasubramaniam Perumal released a sworn statement saying he had given police detailed information about 28-year-old Altantuya Shaariibuu which was never raised during the trial.

However, a day later, he retracted the claims linking Najib to Altantuya, saying he made them under duress.

His nephew on Saturday filed a missing person's report, saying he and his family had disappeared.

Criminal Investigation Department director Bakri Zinin said Malaysian police had enlisted the help of Interpol and authorities in neighbouring countries to help locate the investigator.

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