The cabinet has told International Trade and Industry Minister Rafidah Aziz to write a letter to reply the issues raised by former premier Dr Mahathir Mohamad on the government's automotive policy.

According to a Bernama report, Prime Minister Abdullah Ahmad Badawi told reporters today that Rafidah "had to reply because the issues concerned her ministry".

Among the issues raised by Mahathir, who is also Proton adviser, was the concentration of Approved Permits (AP) on only a few companies, the government's automotive policy as well as the entry of foreign cars at very low prices which reduced the national car's competitiveness.

Mahathir had said this at a press conference called last Tuesday where he defended Proton chief executive officer Mahaleel Tengku Ariff's outburst and criticism of the government's auto policy in an interview he gave to Oriental Daily , a Chinese language newspaper.

Meanwhile, Abdullah, who is also finance minister, said the government's decision not to reveal the names of AP holders remains unchanged.

Mahathir in previous comments had asked for the list of AP recipients to be revealed.

When approached yesterday outside her office, Rafidah declined to comment.

'Proton is our car'

As to whether the cabinet asked Rafidah to explain how only 20 companies were issued with 54,000 APs, Abdullah said "she was asked a lot of things. She will prepare and provide information for the cabinet."

Mahathir had claimed that out of the 67,000 APs issued last year, only 12,600 were given to 82 companies while the bulk of 54,000 APs were given to 20 companies.

In responding to more questions, Abdullah also said: "Proton is our car, we want it to succeed. Yes, we have been protecting Proton (but) while we reduce protection gradually, Proton must develop its competitiveness."

He also said the government has yet to make its decision on the new national auto policy as it needed to further study the matter.

"The decision on the matter would be made at a future cabinet meeting," Abdullah said, but declined to disclose the details of the policy which was submitted to the cabinet yesterday.

After delaying announcing the new policy in June, Rafidah said the auto policy would likely be unveiled in September by the Ministry of Finance.

On the issue of skyrocketing oil prices, the prime minister said the cabinet also discussed the increase in oil prices in the world market which currently were hovering at record levels of US$61 per barrel.