Najib says Proton 'must prove itself' in international markets

-A +A

KUALA LUMPUR (June 14): Prime Minister Datuk Seri Najib Tun Razak said Proton Holdings Bhd "must prove itself" as a competitive global car manufacturer, which would rely less on Malaysian buyers.

Najib said Proton, with the help of the Government's special task force, must strengthen its export markets.

"In April, the Government approved a loan of RM1.5 billion to Proton Holdings so that the company could pay for components that had been supplied. This was not a bailout, as the loan came with strong conditions. But the urgent need for the cash injection laid bare the fact that there are serious structural flaws within Proton.

"The loan was not a blank cheque. The company must prove itself, both in the domestic and the international markets. Ultimately, Proton must build up a strong export programme and become less reliant on Malaysian buyers," Najib said in his speech at the launch of the new Proton Perdana at Putrajaya today.

Najib said the Government expects to see results when it provided financial support to local industries and companies.

He said the Government has the responsibility to ensure tax payers' money was put to good use.

"The Government is more than willing to work hand in hand with the private sector to promote enterprise, development and the growth of Malaysian businesses. But if the Government supports industries and companies, there have to be results. We cannot put the people's money into ventures that cannot support themselves.

"So we want — we all want — Proton to succeed again. This is why the company will be assisted in meeting the Government's conditions by the newly-formed special task force. It consists of representatives from both the private and public sectors, with a variety of experience in finance, business, and marketing, amongst other fields," Najib said.

He said the task force's role was limited as it would only identify Proton's strategic foreign partner and oversee the company's turnaround process.

According to Najib, the task force will not interfere in the day-to-day operations of Proton, which is a unit under DRB-Hicom Bhd.

"There has been too much political interference in Proton's strategy, management — including of personnel — and business model.

"We saw the results of that early this year. A manufacturer which should be a source of national pride was facing a very difficult situation. The Government stepped in again. To protect Malaysian jobs, to protect Malaysian families who rely on Proton, and to protect the company's business partners' income and livelihoods," Najib said.

KUALA LUMPUR (June 14): Prime Minister Datuk Seri Najib Tun Razak said Proton Holdings Bhd "must prove itself" as a competitive global car manufacturer, which would rely less on Malaysian buyers.

Najib said Proton, with the help of the Government's special task force, must strengthen its export markets.

"In April, the Government approved a loan of RM1.5 billion to Proton Holdings so that the company could pay for components that had been supplied. This was not a bailout, as the loan came with strong conditions. But the urgent need for the cash injection laid bare the fact that there are serious structural flaws within Proton.

"The loan was not a blank cheque. The company must prove itself, both in the domestic and the international markets. Ultimately, Proton must build up a strong export programme and become less reliant on Malaysian buyers," Najib said in his speech at the launch of the new Proton Perdana at Putrajaya today.

Najib said the Government expects to see results when it provided financial support to local industries and companies.

He said the Government has the responsibility to ensure tax payers' money was put to good use.

"The Government is more than willing to work hand in hand with the private sector to promote enterprise, development and the growth of Malaysian businesses. But if the Government supports industries and companies, there have to be results. We cannot put the people's money into ventures that cannot support themselves.

"So we want — we all want — Proton to succeed again. This is why the company will be assisted in meeting the Government's conditions by the newly-formed special task force. It consists of representatives from both the private and public sectors, with a variety of experience in finance, business, and marketing, amongst other fields," Najib said.

He said the task force's role was limited as it would only identify Proton's strategic foreign partner and oversee the company's turnaround process.

According to Najib, the task force will not interfere in the day-to-day operations of Proton, which is a unit under DRB-Hicom Bhd.

"There has been too much political interference in Proton's strategy, management — including of personnel — and business model.

"We saw the results of that early this year. A manufacturer which should be a source of national pride was facing a very difficult situation. The Government stepped in again. To protect Malaysian jobs, to protect Malaysian families who rely on Proton, and to protect the company's business partners' income and livelihoods," Najib said.

At 12:30pm, DRB-Hicom shares rose 2.5 sen or 2.8% to settle at 92.5 sen for a market value of RM1.79 billion. The stock saw 3.5 million shares traded.