Umno information chief, Annuar Musa, citing car manufacturer Proton as an example, said the competitive automotive industry had prompted many companies to merge.

“We are proud that Malaysia has an automotive industry but the situation has changed. Since we are no longer competitive, the government has to give billions in subsidy to prevent Proton from closing shop.

“The subsidy money should be used for the people’s benefit,” he told reporters after giving a talk for Umno members here today.

Annuar said he had urged the Prime Minister, Najib Razak, to modify non-beneficial legacy of past leaders.

“We cannot continue to support Proton because public funds are used to save a business model which should go for a merger. The cost of privatisation must also be reviewed so that the people are not burdened by taxes.”

Annuar also defended Sabah Umno deputy chairman Salleh Said Keruak who was criticised after appearing to have suggested that the Petronas Twin Towers could be destroyed in order to erase the legacy of former premier Dr Mahathir Mohamad.

“The Opposition spun Salleh’s statement by quoting just a part of it. The minister did not mean to destroy KLCC (Petronas Twin Towers).”