Prime Minister Abdullah Ahmad Badawi is to take control of national automotive policy as the country bids to revive the Proton brand and become a regional hub for the industry.

Abdullah will chair a committee tasked with drawing up a national auto policy by September, a statement said on yesterday.

The committee will revise Malaysia's vehicle imports system which has been criticised for allowing foreign competitors to undercut Proton, the national automaker.

"A committee under the prime minister's department has been formed to formulate a national automotive policy," said the one-page statement issued after a weekly cabinet meeting.

It added that there were "weaknesses under the current vehicle import system".

"The policy that will be adopted will address all problems related to the auto industry and will protect the status of Proton as a national car," the statement said.

Gag order for Rafidah

Cabinet also forbade outspoken Trade and Industry Minister Rafidah Aziz, who was initially given the task of drawing up an automotive policy, to issue any statements to the media.

Abdullah's move apparently stems from comments made by Proton's former chief executive officer Tengku Mahaleel Ariff, who said last month that the 20-year-old carmaker was being "poorly treated" by the government.

He found support from former premier Mahathir Mohamad, now an official adviser to Proton, who said special permits allowed importers to bring in cars which were underpriced.

However, Rafidah retorted that the national carmaker should become more competitive and improve the quality of its "shoddy" vehicles instead of complaining about the import scheme.

The national carmarker used to sell six out of every 10 new cars in Malaysia but growing foreign competition is eating into its market share, which fell to 44 percent in 2004 from 48 percent in 2003.