CYBERJAYA, April 16 — Prime Minister Tun Dr Mahathir Mohamad repeated his emphasis today on Malaysia’s need for a third national carmaker notwithstanding his administration’s recent attention to rail projects.

While acknowledging the rail sector will receive billions in federal allocations, the prime minister stressed that the stimulatory effect on the economy was not the same with consumer spending in the automotive sector.

"No, we are investing (in trains) but the main thing is, when we build in Malaysia, only the government is the customer, because the railways belongs to the government.

"So the government must make a decision to encourage local production, by buying more from local sources,” Dr Mahathir said when asked if the government should focus its spending on public transport instead of pursuing another national car.

MORE TO COME