KUALA LUMPUR (April 16): Former prime minister Tun Dr Mahathir Mohamad said it was the Malaysian Government's duty to support Proton Holdings Bhd as the national car company had contributed to the country's industrialisation.

The Edge Malaysia business and investment weekly (Edge Weekly) in its latest April 18 to 24 issue, quoted Dr Mahathir as saying government support for national car industries was a norm globally.

“Every country, when they get into the automotive industry, they protect the industry. They protect it in many ways, sometimes through taxes, sometimes through non-tax conditions.

“The government has to support the industry. Everywhere in the world, the government supports R&D costs. That is the duty of the government because the private sector contributes to the development of the country,” said Dr Mahathir, who is also Proton's former chairman.

His comments followed the Government's move to approve a RM1.5 billion loan to Proton. In a statement last Thursday, International Trade and Industry Minister Datuk Seri Mustapa Mohamed said the Government task force to rejuvenate Proton would ensure that conditions attached to the loan were met.

Proton is now a privately-owned company following a take-over offer by DRB-Hicom Bhd in 2012. Proton shares were delisted from Bursa Malaysia on May 16, 2012. 

Yesterday (April 15), DRB-Hicom shares fell one sen or 0.9% to close at RM1.06 for a market capitalisation of RM2.05 billion. The stock saw some three million shares traded.

DRB-Hicom shares had fallen 15% this year compared to the FBM KLCI's  2% gain. For a better understanding on Proton, kindly pick up and read the latest Edge Weekly issue.

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