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When Mahathir the Advisor is powerless

Mahathir: Proton’s failure is due to political interference, the government’s failure to collect import duties from car importers and, above all, its failure to chart a clear future for the company.

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Mariam Mokhtar: Nazri Aziz and Proton

Why did he keep quiet when Mahathir Mohamad was still prime minister? In fact, Nazri was Minister for Entrepreneur Development from 1999 to 2004.

In one fell swoop, Nazri insulted the millions of low to middle income Malaysian families who would not have been able to enjoy car ownership without Proton. Nazri has also neglected to consider the interests of hundreds of thousands of workers who depend on Proton to make their living – the Malaysians who work for Proton itself and those employed in related industries.
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In 2012, Mahathir told Bloomberg TV that Proton had done rather well since it was launched in 1983. Indeed, in 2002, the year before he resigned, Proton was enjoying a 60 per cent share of the car market.

http://www.freemalaysiatoday.com/category/opinion/2017/03/05/nazri-and-the-proton-saga/

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23 January 2018

FMT News‏ @fmtoday

My successors inherited a ‘profitable’ Proton, says Mahathir

PUTRAJAYA: Dr Mahathir Mohamad again defended national car project Proton which he launched three decades ago, saying his successors inherited a profitable company which started going downhill due to government fiddling.

“The national car project made so much profit that it was able to build Tanjung Malim (plant) with its own money without borrowing any money from the bank or seeking government assistance.

“It was a profitable venture until the government started fiddling with it. They insisted on all kinds of things,” the former prime minister who led the country for 22 years told a press conference with Pakatan Harapan (PH) leaders here.

He said Proton’s troubles were due to the policies of Abdullah Ahmad Badawi, who succeeded him, and the current prime minister Najib Razak.

In an apparent response to Najib’s recent attacks over his economic policies, Mahathir said the country’s economy was in good shape when he left the government in 2003, despite having gone through the Asian economic crisis.

“Things were doing well in this country when I stepped down. This is why I waited and did not step down in 1998 as we were facing a economic crisis.

“I left the country shipshape,” he said.

Mahathir set up Proton in 1983. It started production in 1985, as part of his aggressive industrialisation drive of the Malaysian economy.

At its peak, Proton dominated local automobile sales with nearly 80% of new passenger cars sold coming from its factories.

http://www.freemalaysiatoday.com/category/nation/2018/01/23/my-successors-inherited-a-profitable-proton-says-mahathir/

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7 March 2017

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…during his tenure as prime minister, Proton collected up to RM4 billion in profits and built a plant costing RM1.8 billion without government or commercial loans.

It also paid a total of RM18 billion in taxes, he said.

Proton, a one time national car, was Mahathir’s brainchild.

It is now owned by DRB-Hicom.

malaysiakini.com‏Verified account @malaysiakini 39m39 minutes ago

The government is responsible for Malaysian carmaker Proton’s financial woes, as it had delayed the disbursement of promised research and development grants, former Proton chairperson Dr Mahathir Mohamad says.

He stated this after Tourism and Culture Minister Nazri Abdul Aziz had said Proton was one of the former prime minister’s “white elephant” projects.

“The government pays for research and development in manufacturing, but even when there were funds allocated for Proton, the government was late in supplying it due to budget constraints.

“Proton then used its own funds to develop three new cars and this has caused it to face financial problems,” Mahathir said in a blog post yesterday.

Mahathir, who said his three Proton cars have never given him problems, added that the carmaker first faced issues when the government allowed widespread import of foreign cars.

This despite Proton being barred from entering the countries from which these foreign cars originated, he said.
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He said protection for Proton was not the cause for high car prices in Malaysia, instead it is due to a rise in import duties.

“The cost of imported cars have always been high, even before Proton existed, including when cost of living was lower,” he said.

https://www.malaysiakini.com/news/374731?utm_source=dlvr.it&utm_medium=twitter

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5 March 2017

FMT News‏ @fmtoday 2h2 hours ago

Has Nazri Aziz finally crawled out of the Putrajaya woodwork only a few days ago to notice that Proton is in trouble? Why did he keep quiet when Mahathir Mohamad was still prime minister? In fact, Nazri was Minister for Entrepreneur Development from 1999 to 2004.

It’s disingenuous of the Tourism and Culture Minister to say that Proton is Mahathir’s white elephant. Is it not also Khazanah’s? After all, like MAS, Proton’s troubles appear to have begun after Khazanah acquired it.

With the advent of social media, Nazri must have been aware that criticisms against Proton have been flooding the networks. People complain about the window seals, the anti-rust coating and the power windows. Malaysians living overseas notice that foreign Proton models are more sturdy and sport additional safety features. They also say the exported cars are cheaper than those sold in Malaysia.

Nazri’s outburst against Mahathir was a reaction to the former PM’s objections to the sale of Proton shares to foreign interests. Pointing to Proton’s continual requests for additional funding, Nazri claimed that the company was a failure.
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Proton could have been more efficient, but why did Nazri not deal with the problems years ago rather than raise them now, and only to use them as ammunition against Mahathir?

The problems in Proton are analogous to the problems in the civil service. Nazri, like the rest of us, has always been aware of them. These problems include high wages and various benefits which cannot be sustained, especially in these times of economic trouble. Few have the political will to confront these problems.
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Proton started declining after Tengku Mahaleel Tengku Ariff was removed as its managing director in 2005. Tengku Mahaleel had successfully accumulated cash reserves in excess of RM4 billion, and built a huge 150,000-unit plant in Tanjung Malim.

Some observers allege that Tengku Mahaleel’s removal was a direct result of his criticism of the AP system. With the emphasis on importing vehicles, there was a danger that Malaysia would become an automobile assembly hub instead of an automotive manufacturing base.

These comments displeased the government, and Tengku Mahaleel’s contract was terminated.

During Khazanah’s guardianship of Proton, the funds that Tengku Mahaleel had carefully built up were depleted. Where has the money gone to? With Proton needing large cash injections, it is not surprising that it will be sold to anyone who is interested.

Mariam Mokhtar is an FMT columnist.

With a firm belief in freedom of expression and without prejudice, FMT tries its best to share reliable content from third parties. Such articles are strictly the writer’s (or organisation’s) personal opinion. FMT does not necessarily endorse the views or opinions given by any third party content provider.

http://www.freemalaysiatoday.com/category/opinion/2017/03/05/nazri-and-the-proton-saga/

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DRB-Hicom reported in May a net loss of RM991.9 million for the year ended March 31, compared with a net profit of RM300.2 million a year earlier, mainly dragged by poor performance at Proton.

http://www.freemalaysiatoday.com/category/nation/2016/06/07/putrajaya-to-inject-rm1-25-billion-into-proton/

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8 June 2016

From Potong Harga to Potong Saja?

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KUALA LUMPUR: Putrajaya is to inject up to RM1.25 billion into Proton Holdings Bhd by subscribing to convertible debt to be issued by the auto maker.

The Wall Street Journal reported that if the government chose to fully convert the debt into shares, it could become Proton’s largest shareholder again.

Malaysia’s sovereign-wealth fund Khazanah Nasional Bhd sold its majority stake in the national car maker to Malaysian conglomerate DRB-Hicom for about USD412 million in 2012.

Proton has struggled to grow its share in an increasingly competitive domestic market and a gradual scaling back in import tariffs, said the report.

In a local stock exchange filing, DRB-Hicom said its unit had entered into a conditional agreement with Malaysia’s Ministry of Finance Inc’s Govco Holdings Bhd, which would take up to 1.25 billion new redeemable convertible cumulative preference shares, or RCCPS, issued by Proton.

The company said the RCCPS would have a par value of 1 sen and premium of 99 sen each at an issue price of 1 ringgit.

“The proposed RCCPS issuance will enable Proton Holdings Bhd to regularise its cash flow and settle the long outstanding balance payable to the Proton Holdings Bhd group’s various local and international creditors, vendors and suppliers,” DRB-Hicom said in the filing.

Under the agreement, Proton should try “to seek and identify a strategic and renowned partner” who will assist in research and development to become a competitive player in the global automotive industry, DRB-Hicom added.

http://www.freemalaysiatoday.com/category/nation/2016/06/07/putrajaya-to-inject-rm1-25-billion-into-proton/

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9 April 2016

Malay Mail Online ‏@themmailonline

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Simon Thong Retweeted CloudhHAX Car

Simon Thong added,

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Malay Mail Online

A file picture of the Proton Iriz. The International Trade and Industry Ministry says many of Proton’s newer models display ‘advanced technology, high quality and performance’. ― Picture by YS Khong

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