Former premier Dr Mahathir Mohamad today alluded that Umno Youth deputy chief Khairy Jamaluddin was 'all talk but no action'.

Speaking to reporters at a press conference in Putrajaya, he said Khairy and Umno Youth have done nothing to alleviate the problems faced by the Malays in Penang.

The former premier was asked if Khairy had indirectly attacked Mahathir when he said the state government helmed by Gerakan was responsible for the problem.

The former premier said Khairy, who is also Prime Minister Abdullah Ahmad Badawi's son-in-law, had not done anything concrete besides making racist remarks.

"What have they done? They are in full power now. They can grab (Penang Chief Minister Dr Koh) Tsu Koon by the scruff of his neck and throw him into the sea because they are so powerful.

"But they haven't done anything other than make racist speeches in order to gain popularity with the Malays. He is entitled (to make such statements). All those who are in support of the government can freely voice their opinions. Those who don't, cannot say anything," he added.

Khairy recently came under fire for telling an Umno Youth gathering that the minority Chinese Malaysians would take advantage of a weakened Umno.

While claiming that he was misunderstood, the 31-year-old Oxford graduate however refused to apologise for what he termed as remarks that defended the dignity of his race.

'Very important person'

References to Khairy ( left ) were also made when Mahathir was asked if he would still consider the mediation proposal for veteran politician Mohamad Khalil Yaakob to help bridge the differences between the former premier and Abdullah.

"I understand he informed Khairy and also the prime minister. Of course, he had to inform Khairy as he is a very important person in the party because even menteris besar have to wait when he comes," he said.

"I can sit (at the mediation) provided it is a serious discussion and open to all. No hiding. What I have to say is not a secret and they can refute (if its not true)," he added.

Mahathir then made a passing remark that Abdullah would need to be honest with his son Kamaluddin's business interests.

"Just like the other day he said his children did not do business in Malaysia. But we know that Scomi (owned by Kamaluddin) got more than a billion dollars contract to supply this drilling mud to all the petroleum companies operating in Malaysia," he said.

New Umno boys

On being allegedly sidelined in Umno, Mahathir said the party now has many spin doctors.

"There are new Umno boys now. They are very loyal, they work very hard to spin. The new Umno information chief Brendan Pereira ( News Straits Times group editor) and [P] Gunasegaram (the Sun and Nexnews group executive editor). All very loyal, they work hard to spin," he added.

As for former MAS chief Tajuddin Ramli's claim that Mahathir had forced him to buy the national carrier's shares, he said:

"When he got MAS, my god, he just got bubbling away at all the possibilities. From Malaysian helicopter services to practically being the owner of MAS, he was so very delighted. Now he is saying I forced him."