Khazanah Nasional Bhd is not the government, Prime Minister Dr Mahathir Mohamad said in response to an MCA leader's concerns about public funds being used for the third national car project.

"Khazanah is not the government. It is a company... They are quite free to do business

"If there is a company in Khazanah that is interested, they can still invest," Mahathir told a press conference in Kuala Lumpur this afternoon.

Previously, Entrepreneur Development Minister announced that several partners have been shortlisted for the project, including Siltera.

This prompted MCA deputy president Wee Ka Siong to point out that Silterra is wholly-owned by Khazanah, which is chaired by Mahathir.

Wee said Silterra had cumulative losses totalling RM7.3 billion for 10 years up to 2011, mostly funded by Khazanah.

The MCA leader said the government must be held to its promise that no public funds would be used, either now or in future via bail-outs or cross-subsidies, and the promise that public interest would not be compromised must be kept.

Wee also commented on another firm that is believed to have been shortlisted for the project - Composites Technology Research Malaysia Sdn Bhd (CTRM).

"If this is true, CTRM is a subsidiary of the DRB-Hicom Group owned by tycoon Syed Mokhtar Albukhary, similar to Proton Bhd.

“Due to their history, the emergence of these two companies now raises serious doubts over the promise that no public funds will be used for the third national car project," Wee added.

In the “About Khazanah” section on its website, the firm states: “We are the strategic investment fund of the Government of Malaysia.”