Timor-Leste has scrapped a plan to give its lawmakers free cars after thousands of people took to the streets to protest against it.

On Tuesday, demonstrators burned tyres and set a government vehicle alight, leading the government to bow to public pressure and drop the plan hours later.

Despite this, many returned to the streets, with one protester estimating around 2,000 people demonstrated in the capital Dili on Wednesday.

Though the protests were initially triggered by the cars, the issues have expanded to include calls to end lifetime pensions for retired lawmakers.

The unrest occurs amid rising discontent across Asia, where angry young protesters are targeting perceived government excesses.

A student who participated in the protests expressed frustration over lawmakers wanting luxury cars while citizens suffer economically.

Timor-Leste has one of the youngest populations in Southeast Asia, with over 70% under 35 years old, and faces high inequality and unemployment.

The protests signal a growing movement in the country against political elites, echoing sentiments seen in other Asian nations experiencing similar unrest.