JUNE 3 — Perusahaan Otomobil Malaysia Sdn Bhd (Proton) was established in 1983 and its first car was launched a good 30 years ago, in 1985. The brainchild of Proton was none other than Tun Dr Mahathir Mohamad. Proton was used as a platform for Mahathir’s dream to develop Malaysia into an industrial powerhouse. Despite a no-go from his personal advisers, critics and common sense, Mahathir went ahead establishing Proton.

Since its induction, Proton was always a failing organisation and year in-year out speculators predict the timing of its closure. Proton has been plummeting again and the question of whether the government should continue to bail Proton out has reemerged. Should the government save Proton again?

Initially, Proton dominated the local industry with 60 per cent of car sales. As late as 2001, Proton still dominated the local industry with sales more than 50 per cent compared to other international models. However, in 2014, its sales dropped to 17 per cent and have further reduced to about 15 per cent during the first quarter of 2015. Currently, Perodua leads the local industry while Proton is second, barely above third placed Honda.

Has the quality of Proton dropped that the sales reduced drastically?

Personally, I don’t necessarily think so. Proton survived all the while under Mahathir’s regime because the tax for imported cars was raised significantly, making them virtually unaffordable for the middle income group. Hence, people had no choice but to buy a Proton.

However, since Mahathir resigned, the subsequent leaders reduced the strangle on imported cars and people were able to afford them. Prior to the 2013 general election, the Barison Nasional (BN) manifesto included progressive reduction on tax of important cars. It is estimated imported car prices should reduced as much as 30 per cent by 2018.

Proton is widely known as ‘milo tin quality’ among the people and word on the ground is that “if you want to be safe on the road, do not purchase a Proton.” Although Mahathir would tell you that Proton is probably more safe than a Volvo or Merc, we all know the truth. Mahathir has a problem with grandiosity and the entire nation knows that.

Proton has been sluggish all the while

With the sales of Proton being at an all time low, it is speculated that the government needs to pump in about RM1.5-2 billion to save it from shutting down. Although Mahathir will continue to say Proton needs no bailout, it does not curtain the truth of Proton’s true suffering.

In March 2000, under the premier of Mahathir, Petronas hit the headlines (as it has numerous times) when it sealed a deal about RM1 billion to purchase 27 per cent of Proton shares, making it the controlling shareholder.

The stake was held by DRB-Hicom Group Bhd, which was deeply in debt. This came about after Proton reported a loss of RM 19 million over a period of nine months in 1999.

Mahathir misused Petronas

Very often we hear people questioning our petrol price since we are one of the top petrol producing nations. All kinds of excuses have been cited, some of which makes absolutely no sense. Let the truth be told.

The matter of fact is we are paying a hefty price for petrol despite being one of the front-runners in petrol production globally because Mahathir exhausted billion of Petronas funds and money is still being siphoned out from Petronas.

In the early 1980s, Petronas received a lot criticism for injecting huge amounts of money to bailout debt-ridden and politically affiliated Bank Bumiputra. In 1998, the entire nation wept as Mahathir spearheaded Petronas to bail-out Konsortium PerkapalanB erhad (KPB), a public-listed company belonging to his son, Mirzan Mahathir. It was estimated KPB floundered debts around RM1.7 billion.

Under the Mahathir regime Petronas was used to finance the Petronas Twin Towers and development of the country’s administrative capital,Putrajaya. Through Putrajaya Holdings Sdn Bhd (where Petronas is one of the shareholders) it was also involved in landmark projects like Putra Square, Putra Mosque, Putra Bridge, Putrajaya Lake and Wetlands. Petronas was also used to secure the title sponsorship for the rights of Malaysian Formula 1 Grand Prix. While all this seems colourful to market Malaysia around the world, economists and traders dubbed many of them wasteful.

Petronas was more than a bank to fund Mahathir’s mega-projects and is still continuing to do so, that is why the public does not really benefit the advantage of Malaysia being an oil producing nation.

While you may argue and say all these developments were necessary to put Malaysia on the map, let me remind you that Singapore is far ahead than us in all aspects with nothingto depend on locally. Success is through good governance and not wasteful blind expenditure.

Mahathir reminds me of Fiorentina Perez of Real Madrid where he just splurged insane amounts of money for success.

Should the government save Proton again?

Personally, my answer is NO! We are done and over with Mahathir spoiling the nation. KPB-bailout, MAS-bailout & Proton-bailout. We had enough with Mahathir’s bailout culture. If in 30 years a company cannot stand on its own feet and progress, it is time to shut it down.

Such companies are only liabilities to the country. Forget the “national car” emotional slogan. Currently, Perodua is a better mascot of a national car than Proton.

It is high time the nation uses its brains to think and not the heart.

* This is the personal opinion of the writer or publication and does not necessarily represent the views of Malay Mail Online.