The Cabinet today agreed to appoint former premier Tun Abdullah Ahmad Badawi as the new Petroliam Nasional Berhad (Petronas) adviser effective this April 1.

Prime Minister Datuk Seri Najib Razak said Abdullah replaces Tun Dr Mahathir Mohamad whose appointment was terminated by the Cabinet earlier this month, Bernama reported.

"The decision to terminate Tun Dr Mahathir Mohamad's appointment was made by the Cabinet because he no longer supports the government in power, particularly after launching a 'Citizens Declaration' alongside Opposition leaders," Najib reportedly said in a statement today.

On March 11, the Cabinet had unanimously decided to terminate Dr Mahathir’s appointment as Petronas adviser because he no longer backed the current government and therefore should not hold any position related to the government.

In response, Petronas had said it respects the government's decision to dismiss Dr Mahathir, as the appointment of its adviser was the prerogative of the government.