A PKR leader has acknowledged that former prime minister Dr Mahathir Mohamad was wrong in using the term "keling", which is considered derogatory to Indians, in his speech.

However, Shaharuddin Badaruddin said, the people must not be distracted from the issues concerning 1MDB and Prime Minister Najib Abdul Razak.

"In our effort to build national unity, we must be brave to discard terms that have taken root in the Malay community but have a negative connotation on other races.

"The usage of such words must be re-evaluated," said Shaharuddin, who is a PKR vice-president.

"Although I regret the usage of the word and urge Mahathir to rethink the need of using such words in future, at the same time, Malaysians must be cautious of attempts to divert attention," he added in a media statement.

Shaharuddin said Malaysians are still waiting for Najib’s explanation on who "Malaysian Official 1" (MO1) is and the involvement of MO1 in the 1MDB imbroglio.

Recently, a brief video-clip surfaced depicting Mahathir using the word "keling" during a Save Malaysia event in May in Langkawi.

He had used the term when launching a broadside against Najib and the battle against the Islamic State threat.

Following this, a police report was lodged against Mahathir.

Penang Deputy Chief Minister II P Ramasamy and MIC leaders also criticised Mahathir for using the word.

Among others, Ramasamy asked civil society leaders how they could back Mahathir’s move to form a new party when he still possessed a racist mindset.