Finance Minister Lim Guan Eng has praised the offer to resign Khazanah managing director Azman Mokhtar and eight other directors as a smart move.

"This is a smart decision (that can) allow the prime minister room to make his choice," he told the media at the Parliament lobby today.

He said the prime minister will decide whom he wants to appoint to the board.

"It is always the prime minister who makes the final decision, after all, he is the prime minister," Lim said.

"I think we should leave it to the wisdom of the prime minister (Dr Mahathir Mohamad)."

Lim, however, stressed the matter was discussed in the cabinet meeting yesterday.

Earlier today, Khazanah issued a statement announcing that Azman, executive committee board chairperson Nor Md Yusof and seven other board members had tendered undated resignation letters to facilitate s smooth transition if necessary.

They are Nazir Razak, Nirmala Menon, Mohamed Azman Yahya, Mohammed Azlan Hashim, Yeo Kar Peng, Andrew Sheng Len Tao and Raja Arshad Raja Uda.

Earlier this month, Mahathir claimed that Khazanah had deviated from its original objective of helping the bumiputera.

Khazanah was established in 1993 during Mahathir's first tenure as prime minister.

The premier said Putrajaya would review the companies in which Khazanah has a stake in.

It will also seek to sort matters to return the wealth fund to its original path of holding shares allocated to the bumiputera until a time when the latter can buy them.