Issues surrounding national car Proton and the Malaysian automobile industry have been resolved, said Prime Minister Abdullah Ahmad Badawi today.

"I believe so because explanations have been given," he was quoted in a Bernama report when asked whether he considered the matter settled.

On Wednesday, the cabinet has asked International Trade and Industry Minister Rafidah Aziz to write a letter to reply the issues raised by former premier and Proton advisor Dr Mahathir Mohamad on the government's automotive policy.

Mahathir had questioned the concentration of Approved Permits (APs) on only a few companies, the government's automotive policy as well as the entry of foreign cars at very low prices which reduced the national car's competitiveness.
He also defended Proton chief executive officer Mahaleel Tengku Ariff's outburst and criticism of the government's auto policy in an interview he gave to a Chinese language newspaper.

Received by Mahathir

Speculations have been rife that the embattled Rafidah was asked to go on leave after her tussle with Mahathir - her once close ally.

However, yesterday the premier denied that action will be taken against her and that Rafidah had applied for the leave three weeks ago.

Abdullah also confirmed that the letter written by Rafidah had been sent to and received by Mahathir.

"I am not going to reveal the content because the letter is for Tun (Dr Mahathir)," he said.