BEIJING (April 26): China Construction Bank (CCB) is lending RM1.88 billion to Proton Holdings Bhd to finance its research and development (R&D) as well as infrastructure development.

Prime Minister Tun Dr Mahathir Mohamad witnessed the exchange of agreement between Proton and CCB — one of the four largest state-owned banks in China.

Zhejiang Geely Holding Group Co Ltd, which holds a 49.9% equity stake in Proton, noted that the loan granted by CCB will give a boost to Proton’s future business expansion plans and global revitalisation.

As part of the strategy to revitalise Proton, Geely said the company committed itself to playing a more active role in developing Malaysia’s automotive ecosystem by encouraging local vendors to improve their efficiency, quality, expertise and global outlook.

“This was achieved by matchmaking Malaysian vendors with their Chinese counterparts who already supplied to Geely to form new joint-ventures and sign technical agreements,” said the China-based auto maker in the statement.

To date, 16 Chinese vendors have signed up for the initiative, cumulating in an initial investment of over RM270 million into the Malaysian automotive component industry.

The partnership with Proton has opened up the opportunities for auto industry players along the supply chain, said Geely, adding that this will bring sustainable developments to other countries along the “Belt and Road” route.