KUALA LUMPUR (Sept 29): The government will not interfere in the sale of Proton Holdings Bhd's stake.

Second Minister of International Trade and Industry Datuk Seri Ong Ka Chuan said Proton is now privately held by DRB Hicom, so they are free to sell.

"They are free to make their own decision," he said.

Ong said Proton has previously talked to the Chinese automobile manufacturer.

"I think they are looking for the best offer. We are not going to interfere," he added.

He also pointed out that Proton will have to work with foreign car makers, as the Malaysian market is relatively small, compared with the U.S. or China markets.

"We only have a combined automobile market of 600,000. (The) Malaysian market cannot support the research and development (R&D) expenses needed in the car-making industry," he added.

Quoting sources, it was reported that a stake of as much as 51% will be sold in Proton.

Proton is said to have shortlisted carmakers, including Volkswagen AG’s Skoda unit and Suzuki Motor Corp, to sell a stake and raise money to turn around.

The carmaker has also chosen proposals from companies, including Renault SA and Peugeot parent, PSA Group.

Meanwhile, according to earlier reports, a taskforce led by Performance Management and Delivery Unit (Pemandu) chief executive officer Datuk Seri Idris Jala is responsible in monitoring the implementation and success of Proton’s business recovery plan, which aims to enhance the competitiveness of the national car maker.

This follows the announcement by the government on April 8 that it had approved Proton’s request for a soft loan amounting to RM1.5 billion, to enable the company to make payments to vendors that supply components to it.

At 12.30 p.m., shares of DRB-Hicom, which controls Proton, fell 2 sen or 1.3% to RM1.50, for a market capitalisation of RM2.88 billion.