The government will go ahead with the construction of the second line of the Mass Rapid Transit (MRT Line 2) despite the current global economic problem, said Prime Minister Datuk Seri Najib Razak.

He said it was the government's commitment to ensure the project could be carried out smoothly for the benefit of all, including in terms of providing employment opportunities and income.

"This clearly shows that Malaysia is not a failed country as claimed by certain politicians and the government is not facing any financial crisis," said Najib in his blog posting at www.najibrazak.com.

Najib, who chaired a discussion on acquisition for the MRT Line 2 construction Tuesday, said it also proved that the government always gave priority to initiatives pertaining to the country's development.

"I want to say again that we will continue to spend prudently, especially for people-centred projects, like infrastructure and transportation," he added.

For MRT Line 1, Najib said 43 per cent of the total value of the package had been given to Bumiputera contractors as an initiative to ensure the agenda on bumiputera economy.

"For Line 2, the government continues to encourage bumiputera participation with at least 45 per cent of the total value of the package to be given to them, apart from the minimum requirement of 30 per cent of consultancy work for bumiputera contractors as set by MRT Corp," he added.

The prime minister also gave the assurance that the government would continue with efforts to improve the public transportation system in the country.