BN Youth will not take any action against Pasir Gudang MCA Youth division over its decision to cut ties with Prime Minister Najib Abdul Razak, BN Youth chief Khairy Jamaluddin said today.

"I've been told by Wee Ka Siong (the MCA deputy president) that the matter is now closed and that MCA Youth Pasir Gudang division has been reminded that it cannot unilaterally cut ties with the leadership of BN.

"They have been told this by their own party. So as far as I'm concerned, this issue is now closed," Khairy told a press conference today after the Ragbi Piala Agong finals match at Stadium MBPJ in Kelana Jaya.

The Pasir Gudang MCA Youth division had decided to cut ties with the prime minister because of Najib's support for the red shirts rally of Sept 16.

The rally, which was held to "uphold Malay dignity", had been marred with anti-Chinese racial elements.

“We don’t agree with the Sept 16 rally, which has spoilt race relations. But Najib praised the rally as peaceful. Therefore, we have decided (to break ties),” Pasir Gudang MCA Youth chief Cia Chow Hui had said.

This decision caused a furore within the BN coalition.

Khairy had told the rebel wing that it would be best for it to exit from the ruling coalition if it had to resort to such drastic action.

He also said the division’s action could jeopardise ties within the ruling coalition.

"The cooperation can be damaged with such individual actions," Khairy was reported as saying then.