(May 29): Prime Minister Dr Mahathir Mohamad has reiterated that the third national car project will be fully funded by "private entities" such as SilTerra Malaysia Sdn Bhd, which is a wholly-owned subsidiary of Khazanah Nasional Bhd.

"We welcome the willingness by private entities such as SilTerra to lend its expertise in the new national car project.

"SilTerra is Khazanah's sister company, and it is capable of producing car components following its vast experience in making semiconductor chips for various industries for more than 20 decades," he said, Malaysiakini reported.

He added that the third national car project is not just about making a car, but also using Malaysia's talent pool and resources to create an environment in which entrepreneurs and industries can thrive.

The project will create job opportunities for youths, especially local engineers, which will help make Malaysia a producer.

The Prime Minister had said this in a reply to senator Chai Kim Sen, who had asked whether the RM20 million grant for the project was to help SilTerra, which had cumulative losses of RM7.3 billion over 10 years up to 2011.

The Prime Minister added in his reply that as part of Khazanah, SilTerra plays a crucial role in the country's strategic interests in terms of being a catalyst for technology investment in Malaysia, Malaysiakini reported.

The company recorded annual earnings of RM600 million on average, Mahathir said, and profits of RM60 million for three consecutive years.