Umno-BN is not shaken by news that political titan Dr Mahathir Mohamad is setting up a new opposition party, Deputy Prime Minister Ahmad Zahid Hamidi said today.

Speaking to reporters in Mongolia, where he is attending a regional summit, Zahid said Umno-BN would go all out to stay in government, and would employ Mahathir's own tactics against him.

"The person who wants to form a new party was once a leader who took action against his political rivals, so based on what we were taught, we will do the same.

"If that person is on the other side, then we will do as he once did before to his political enemies," Zahid was quoted as saying by Bernama.

He said this when asked if the government was afraid of the new party Mahathir intends to form.

Mahathir yesterday confirmed speculation that a new party was in the works, adding that it would be part of the opposition fighting BN in the next general election.

The former prime minister said his son Mukhriz, former deputy prime minister Muhyiddin Yassin, and former Umno vice-president Shafie Apdal have all expressed interest in being part of the new party.

Zahid, who is also home minister, said they were trying to influence the voters ahead of the next general election, which is due to be held in two years’ time.

He also said the recent Kuala Kangsar and Sungai Besar by-elections showed BN still has the people's support, and he would leave it to them to judge the ruling government's performance.

BN won thumping victories in both the by-elections last month, despite Mahathir himself turning up to campaign for Amanah in what he called a referendum on the public support for Prime Minister Najib Abdul Razak.