Ailing national automaker Proton will decide by year end if it will have a local or foreign partner to help revive the company, a report said today.

Second Finance Minister Nor Mohamed Yakcop said in a Business Times report that Proton would have a concrete recovery plan by end 2006 including whether it will take on any partners.

Critics have warned that Proton, which suffers from a reputation for poor quality, must find a strong partner with the necessary technological expertise to buy a controlling stake if it wants to secure its long-term survival.

Nor Mohamed said the government had not seen any proposal from either Naza Group and DRB-Hicom, both of which assemble and distribute vehicles locally, to buy Khazanah's near 43 percent stake in Proton.

Proton's market share has fallen steadily in recent years due to increased competition and as its vehicles have gained a reputation for unimaginative design.

Proton was set up in 1983 as part of Malaysia's drive into heavy industry.