Malaysian government's money problems is affecting everyone - even school sports got lesser money this year, and then we hear that the Malaysian government is giving Proton RM1.5 Billion?
Proton is not a wholly owned government company like the Malaysian Airlines now...it is a private company?
Why the Malaysian government giving out loans [or 'soft loans'] - does Malaysia have so much access money to be giving out soft loans... Malaysia's Sovereign Debt RM630.5 Billion, Bank Negara say external debt over RM833 billion?
So, is Malaysia borrowing again to give Proton a 'soft loan'? What are the 'terms' of repayment?
Normally businesses will go to the Banks to get a loan - why can't Proton do the same? Maybe, they tried but the Banks rejected their applications - was that it? So, was that the reason why Malaysian government is stepping in to give this 'soft loan' - not a few million, but RM1.5 billion, which is a lot of money that Malaysian government really do not have...?
National Car - well, Proton may be the first 'national car' - but today, we have 4 other national cars - Proton, Perodua, Naza Kia and Inokom. Are they even really national cars - or are they still just a re-branding of foreign cars?
Worried about the 60,000 workers - well, this is new? Remember that there are so many Malaysian workers that Malaysia need to be concerned about...is there not? Many of the government-owned and GLCs have been not so concerned about workers - retrenchment, 'wrongful dismissal', deprivation of union rights...So, what will happen when Proton starts retrenching workers - well, the government already said,
Asked if the restructuring of Proton will involve job cuts, Mustapa said,”It depends on the management, but as I have stated in the statement on April 1, Proton must have a sustainable business model.”
See also how Malaysian Airlines, and the government of Malaysia is delaying the recognition of the first Union in the 'new' Malaysian Airlines -'Wrong address', a lame reason for denying recognition of Malaysian Airlines flight attendants' Union?
Mustapa: RM1.5 billion soft loan to Proton not a bailout
Translated by Google Translator:
This article first appeared in The Edge Financial Daily, on April 14, 2016.
A
filepic of Perusahaan Otomobil Nasional Sdn Bhd (Proton) headquarters
in Shah Alam. A six-man special task force to be led by Idris is to
monitor Proton’s transformation plan.
KUALA LUMPUR: Minister of International Trade and Industry Datuk Seri Mustapa Mohamed rebutted the claim that the RM1.5 billion soft loan approved to Proton Holdings Bhd is a bailout.
The minister defended that the decision was based on the welfare of the 60,000 workers and the vendors community.
Mustapa said that the decision by the government took into account Proton’s history and brand.
“First, this is not a company owned by the government, but a private company [with a] history and the [fact that it] is a national car.
“Then we are also looking at the workers’ welfare, we have to remember that Proton vendors are not only supplying to Proton but also other (car) companies, if these vendors face a big problem, this will also affect their supply to other companies.
“These are among the rationale why we gave the soft loan to Proton,” Mustapa told reporters after launching the Maxus G10 MPV car at Menara Weststar yesterday.
Asked if the restructuring of Proton will involve job cuts, Mustapa said,”It depends on the management, but as I have stated in the statement on April 1, Proton must have a sustainable business model.”
Last Friday, the Cabinet approved the conditional soft loan to Proton. The conditions included seeking a strategic foreign partner, coming up with a turnaround plan, as well as strategic plan to expand its domestic and international markets.
Also, a six-men special task force to be led by Performance Management and Delivery Unit chief executive officer Datuk Seri Idris Jala is to monitor Proton’s transformation plan.
It is not known when the special task force will have its first meeting.
Mustapa acknowledged that Proton’s management has no issue with the conditions set by the government.
However, he said the government will not be involved in the day-to-day operations of the car company but it will monitor its performance.
Moving forward, Mustapa said,”I hope Proton will do better, as that is important to the 60,000 people working in Proton and the vendor community directly supplying to Proton. We hope Proton will be in better shape in the medium term.”
A
filepic of Perusahaan Otomobil Nasional Sdn Bhd (Proton) headquarters
in Shah Alam. A six-man special task force to be led by Idris is to
monitor Proton’s transformation plan. KUALA LUMPUR: Minister of International Trade and Industry Datuk Seri Mustapa Mohamed rebutted the claim that the RM1.5 billion soft loan approved to Proton Holdings Bhd is a bailout.
The minister defended that the decision was based on the welfare of the 60,000 workers and the vendors community.
Mustapa said that the decision by the government took into account Proton’s history and brand.
“First, this is not a company owned by the government, but a private company [with a] history and the [fact that it] is a national car.
“Then we are also looking at the workers’ welfare, we have to remember that Proton vendors are not only supplying to Proton but also other (car) companies, if these vendors face a big problem, this will also affect their supply to other companies.
“These are among the rationale why we gave the soft loan to Proton,” Mustapa told reporters after launching the Maxus G10 MPV car at Menara Weststar yesterday.
He pointed out that 60,000 workers are directly affected, a huge
number, and not many Malaysian companies have such a large number of
workers.
Asked if the restructuring of Proton will involve job cuts, Mustapa said,”It depends on the management, but as I have stated in the statement on April 1, Proton must have a sustainable business model.”
Last Friday, the Cabinet approved the conditional soft loan to Proton. The conditions included seeking a strategic foreign partner, coming up with a turnaround plan, as well as strategic plan to expand its domestic and international markets.
Also, a six-men special task force to be led by Performance Management and Delivery Unit chief executive officer Datuk Seri Idris Jala is to monitor Proton’s transformation plan.
It is not known when the special task force will have its first meeting.
Mustapa acknowledged that Proton’s management has no issue with the conditions set by the government.
However, he said the government will not be involved in the day-to-day operations of the car company but it will monitor its performance.
Moving forward, Mustapa said,”I hope Proton will do better, as that is important to the 60,000 people working in Proton and the vendor community directly supplying to Proton. We hope Proton will be in better shape in the medium term.”
Asia Pacific
Malaysia's Proton gets government bailout package
A taskforce comprising officials from the government and the private sector is expected to be set up to monitor the car manufacturer's transformation.
- Posted 08 Apr 2016 19:05
- Updated 09 Apr 2016 01:02
People look at a Proton car model on display at a Proton
showroom in Kuala Lumpur on May 25, 2011. (KAMARUL AKHIR / AFP)
KUALA LUMPUR: Malaysia's government has approved a bailout
package of 1.5 billion ringgit (US$384 million) to help struggling
national car maker Proton help pay its debts, amid poor sales and heavy
losses.
The monetary boost comes with conditions that the company draw up comprehensive plans for a turnaround to its dismal performance, according to reports. A taskforce comprising officials from the government and the private sector is expected to be set up to monitor the car manufacturer's transformation.
"Today's cabinet decision is based on the interest of some 60,000 workers who rely directly on Proton's future," International Trade and Industry Minister Mustapa Mohamed was quoted as saying by national news agency Bernama.
Proton was formed in 1983 by then-premier Mahathir Mohamad as part of an ambitious national industrialisation plan, but it has suffered from a reputation for unimaginative models and poor quality.
Mahathir, who has been leading calls for Prime Minister Najib Razak to step down over alleged corruption involving a scandal-laden state fund, resigned as chairman of Proton in March.
The monetary boost comes with conditions that the company draw up comprehensive plans for a turnaround to its dismal performance, according to reports. A taskforce comprising officials from the government and the private sector is expected to be set up to monitor the car manufacturer's transformation.
"Today's cabinet decision is based on the interest of some 60,000 workers who rely directly on Proton's future," International Trade and Industry Minister Mustapa Mohamed was quoted as saying by national news agency Bernama.
Proton was formed in 1983 by then-premier Mahathir Mohamad as part of an ambitious national industrialisation plan, but it has suffered from a reputation for unimaginative models and poor quality.
Mahathir, who has been leading calls for Prime Minister Najib Razak to step down over alleged corruption involving a scandal-laden state fund, resigned as chairman of Proton in March.
- AFP/yt - Channel News Asia, 8/4/2016
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