Former deputy premier Anwar Ibrahim said that embattled national car maker Proton's future will depend on its ability to seek a fruitful foreign partner soon.

"Time is running out for Proton and the sooner it seeks a reliable and faithful foreign partner, the better it will be," he told malaysiakini in an interview after attending a function in Petaling Jaya last night.

His comments come in the wake of recent reports that German car maker Volkswagen have abandoned plans for an alliance with Proton.

"Proton needs a strong foreign partner to enhance every area, in terms of quality, research and development and competitiveness," he said in an interview with malaysiakini last night.

Proton shares plunged 11 percent yesterday on news that Proton and Volkswagen's year-long negotiations had failed to which Anwar commented that Malaysian investors have little faith left in the company.

"It reflects the general confidence of the public, despite (former Prime Minister and Proton advisor) Dr Mahathir (Mohamad) claiming that he had put Proton on the right track. Clearly, the public has lost confidence," said Anwar.

It was also reported today that another renowned automaker, Mitsubishi Motors of Japan, has also ruled out a joint venture with Proton.

Ninth Malaysian Plan

Meanwhile, Anwar was also asked to comment on Deputy Finance Minister Tengku Putera Tengku Awang claims that government coffers have not run dry although allocations for the Ninth Malaysia Plan will be less than for the previous one.

He explained that the country is still experiencing a budget deficit and was not even able to meet the allocations approved for the Eight Malaysia Plan.

"Even some contractors have yet to be paid. So I fairly anticipate that the allocations will have to be drastically reduced, other than to resort to massive borrowing," he added.

Asked about his participation in a DAP retreat held in Cameron Highlands, Anwar said that it was a rare opportunity for him to meet DAP leaders and hold discussions on various topics.

He however ruled out that the meet was meant to formalise ways of DAP rejoining the Barisan Alternatif - an alliance between Parti Keadilan Rakyat (PKR) and PAS.

"We have not gone to that stage yet. But what we have done is to set the parameters and listen to the concerns of both parties on the need to have a credible opposition," he said.

Anwar, also PKR advisor, is presently lecturing in the Washington DC-based Georgetown University. He is back in the country for a brief visit.