Deputy Prime Minister Najib Abdul Razak is satisfied with the latest price reduction by Proton and Perodua, the final discounts by the two national car companies.

"I've discussed with second finance minister (Nor Mohamed Yakcop). This is the full reduction of Proton and Perodua.

"We've calculated and are satisfied with the discounts offered," he was quoted as saying by Bernama .

Proton today announced a special package for selected models, enabling would-be buyers to save between five and seven per cent on-the-road price.

Perodua also announced a four per cent price reduction for its sedan models including for Kancil 600cc and 850cc manual.

This is the second reduction by the two national car makers.

Foreign cars

Last Friday, Proton lowered the prices of selected models by between 2.5 and seven percent while Perodua had slashed the prices of Kancil 600cc and 850cc earlier.

However, the government was not happy with the rates and instructed the Finance Ministry to monitor car prices.

Najib was also asked whether the government would also ask foreign car makers to bring down their prices.

"It's up to them. This is a competitive market. I believe they will also study and consider an appropriate price reduction.

"If Proton and Perodua have revised their prices downwards, they (foreign car manufacturers) will also have to follow suit," he added.

The government had recently unveiled the National Automotive Policy (NAP) where taxes were restructured.