Proton Needs To Be More Competitive, Says Our Deputy Prime Minister

Seow Yaohan | December 10, 2009

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Proton Needs To Be More Competitive, Says Our Deputy Prime Minister

It seems our government knows of Proton's inherent problems after all, judging by what our Deputy Prime Minister Tan Sri Muhyiddin Yassin said. He mentioned two of Proton's biggest problems: over-reliance on government protection and limited exposure to bigger markets.

“Depending on government support is not enough”, he said, before adding that Proton should be exporting to more regional markets such as India, China and Pakistan, which would then increase economies of scale and lower costs of production. “They need to increase their competitiveness. They should be able to compete not only domestically but also internationally. I don’t need to teach them, the Proton management”.

Of course our Deputy Prime Minister is right and he makes perfect sense. And we are sure the Proton management knows what to do. The real question should be: Why has it taken so long for the government or Proton management to realise that a relatively small car maker like Proton can not survive alone? The 2006 National Automotive Policy (NAP) should have pressured Proton to seek a strategic alliance with a foreign partner such as Volkswagen. It did not. The 2010 NAP finally mandates that, but when will it materialise? Because as of now, nothing has been finalised. The nation waits with bated breath.

AboutSeow Yaohan
Seow Yao Han strives to bring you the latest and the most comprehensive information on cars available in Malaysia. But it's never easy for him to talk and write cars in this part of the world because what you lust after is often not what you drive home. When the euphoria of test-driving that branded, super-expensive sports car dies down, he just goes home in his less-than-glamorous ride.

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