Wednesday, March 05, 2014

What Proton really needs ... [With updates]

Proton hits back at report: The people at Proton are fuming and you can understand why when you read their official response to the offending news article. In four words: The report's not true. I'm sure Jagdev will not take that lying down. His editors, I'm not so sure. Proton is a big advertiser in The Star, I understand, so the bosses will be very, very careful especially if the facts of the story about a major client might have been spiced up and the client is really, really unhappy ... You know how it is.

5 MARCH 2014

* Proton wishes to state that an article in one of the local English newspapers today that "Proton is seeking development funds of RM3 billion from MITI and Petronas is not true as Proton has never applied for any development funds from the organisations

* On the point that Proton has committed RM3.8 billion until 2017 is also not true

* Proton before the takeover by DRB-Hicom has applied for the R&D grant under the Pre-Packaged incentive scheme set by the Government through its agency MIDA

* When DRB-Hicom came in, we reviewed the application with MIDA on the amount and verified the R&D activities undertaken and completed

* To this extent, Proton has complied with all the guidelines set out by MIDA i.e. the definition of R&D eligibility of expenditure and procedure for disbursement of grant. MIDA team and the external auditors have visited Proton to ensure the Company undertakes the R&D activities as proposed and is in compliance with the technical and financial requirements

* The R&D grant under the Pre-Packaged incentive Scheme by MIDA is open to all organisaitons in Malaysian and NOT EXCLUSIVE for Proton only

* For the record, to date Proton has produced 1756 Intellectual Property Rights (IPRs) from trademarks, patents and designs

Original Story 

Up to RM3bil needed to develop new models

Read more h e r e
Not an article the Proton people or their minders at DRB would have enjoyed reading this morning. In fact, there'd be a lot of red faces. It's an embarrassing piece of news made even more so with the clever graphic. Lately, The Star is very good at dishing out this kind of backhand slap to their political masters and sponsors, I give them that. But if it's true, it's important that Proton and their minders make us taxpayers understand WHY.  
It's a shame if they can't, or won't. There's so much going for Proton. Our national cars are about to make a comeback to the UK market and there was so much de facto CEO Luqman Ibrahim was going to do, including finally using the Petronas-built engine … until he called it quits - for the second time in a matter of months. The first time he called it quits, Proton adviser Dr Mahathir Mohamad practically pulled him by the ear to come back and finish the job. This time around, that doesn't seem to be happening … 
What Proton needs is not RM3 billion to develop new models. It needs a model leader. 


  1. Anonymous8:53 pm

    Is it true that the new Proton Perdana, re-badged Honda Accord, can only be sold in the Malaysian Market?

  2. Anonymous8:58 pm

    Better for Proton to die a natural dead as it seems BN Gov is pro opposition and many people 'including' proton people and blogger ridicule proton cars. I sokong the new CHina university and that cheapskate China made cherry car.

  3. spencer669:36 pm

    what proton really needs...
    1. reinvent their management structure to be aligned with project methodology principles
    2. commit and support the entire process of R&D from education, training and learning
    3. shed the protectionist mentality and start engineering funds to sustain its viability & self sufficiencies
    4. start building on quality image and branding with TQM policies
    5. invest in design philosophies according to market & global demands
    6. create portfolio management for all its models to gauge market acceptance and life cycles
    7. commence an evolution strategy on production performance to achieve total integration
    8. reassess all vendors/suppliers commitment to meet excellence (and not just the money part)
    9. establish industry interdepency and dependency to align supply chain management

  4. Anonymous10:48 pm

    just lelong it to China and end of story.

  5. Anonymous11:02 pm


    Proton can't be fixed anymore. Just admit it and move on is the only sensible choice if we're to stop taxpayer money being wasted.

    It's not Tun M's fault as everybody like to believe. It's the people the shareholders put in charge and their workers lackadaisical attitude to the craft of car making.

    They have to be humbled first that they are a failure and everyone in the company must face the heat.

    UMNO pun boleh dimatikan pada tahun 1988 apatah lagi Proton.


  6. KUBURKAN AJE..... a waste og $500 Billion Ringgit on tax payers money...another UMNO-BN Sham with Sultan/Agong approval!!...Rakyat nak komplain lagi.....Heret semua ketua Sultan UMNO-BN bila kelaparan dan kemarahan Barang Naik dah masuk akal!...hapuskan aje agenda racis UMNO-BN dengan persetujuaan sultan/agong

  7. charleskiwi8:02 am

    How can Proton or anyone walk or run a marathon, just like someone who is grown up carrying a tongkat or being moved around in a wheelchair ?
    Don't you think it is time to teach a person and in this case a company how to walk and compete or run and be innovative rather than being given a tongkat or wheelchair and subsidize ?
    Therefore the policy of egregious Mahathir to 'help' the Malays is just really helping to turn the Malays into a bunch of parasites ?
    As a consequence of this policy Malaysia is now in deficit, still remains in the third world. And soon will go into austerity, in spite of the abundance of natural resources the country has !
    Time to teach the Malays or the national company how to be independent to survive to in this world before it is too late ? Above all blaming the Chinese is not the answer to your woes and surely is not going to move you around or getting you forward !

  8. Anonymous9:40 am

    What do yo expect from Tan Sri kamil management style. This guy or even Dato Lokman do not have the experience to run an automotive company like proton! Their experience in DRB has been letting big boys like mercedes, honda run the manufacturing activities while DRB merely sit back and take in the commission - no rocket science at all. They know nut about running a full-fledged automotive company like proton!

    He sacked or forced all the experienced employees to leave. He made all the people that Dato Syed brought in to go and replaced them with his "yes boss" men. The people that he sacked/forced to leave - they were good experienced people- They were grabbed by big companies, whilst those that are still in proton are either dead woods or not good enough to find work outside proton!

    Tan Sri be humble, seek help from retired and experienced Perodua people like Nor Hadi Daud,Dato syed, Wan Ahmad, Abd Aziz, Roslan Ghani, Ahmad Suhaimi, Shukor Ibrahim Zainudin Bahaudin, Dato uehara etc. Get good people still working in Perodua. Learn from them! One day, Naza will also over take proton! Why? - they hired Perodua people to kick start their business. Accept it Tan Sri, Perodua is far ahead of Proton!!!! They must have done something great from day one.

    Your action - begging the government/petronas affects proton image and reflect on your lack of experience in running company like proton. Have you thought -how many proton cars you have to sell to pay back and how long????

    Finally Tan Sri......I wish you all the best. Proton may be your last place. No Dato Lokman to blame.You are on the spotlight - Malaysians are watching you.

  9. Anonymous10:00 am

    I though Syed Mokhtar is smart enough toturn it around but guess the genetic cannot be changed, they still need to rape the Malaysian citizen for the last time for their pocket before letting it die.

  10. Mat Bon12:47 pm

    Confused la Dato',
    1st para Proton denied applying RM 3b development fund from MITI ...

    then 4th para Proton admit that they before the DRB took over, did apply unspecified R&D scheme from MIDA.

    So the Star's article is betullah - cuma salah report MIDA /MITI.

    I support the application, if the objective is to enable Proton compete without having the Government creating tax - to make other cars less competitive.

  11. Anonymous1:24 pm

    This public listed company largely own by syed mokhtar. Now the billionair wants 3 billion from you. Before this
    He sold the idea he can make proton succesfull. So now we now how to be successfull just make easier money from the rakyat. Rakyat told need gst for government operation, Now 3 billion of gst goes to proton. Malaysian continues to be conned.

  12. Anonymous6:14 pm

    if the PR government really think proton waste of money, just pull the premises license, license to operate in their HQ which is in selangor and also where the carlsberg factory (pagi menang petang tutup) located.

    talk is cheap. blaming is like &^#$stupid. so PR macai.. when aah?

  13. Anonymous9:14 pm

    chinki charleskiwi can go to hell.

    Anyway, proton is a waste of time.

    We also need all the chinki workshops to close because they sell fake proton parts and overcharge customers. These chinki workshops - they don't pay tax that much, if any, anyway.

    Just close proton. We don't have the genetics to invent thinks, let alone the copycat fake chinkis in the street.

  14. Anonymous6:54 am

    How does the foot taste?

  15. Anonymous8:29 am

    tan sri kamil as CEO Executive Chairman, DRB Group whatever .....please come out clean. Did Proton begged the government/Petronas for RM3b?

    Be a man. Explain to the public why should they lend you the money. Is proton in deep shit? Can't pay staff salary, vendors etc......? Proton market is shrinking, Proton is in a vole game. No vole, no money for RnD, operating cost etc....

    I guess sooner or later you will have to eat the humble pie. You need help. Proton is a totally a different ball game compare to DRB, commission based income yo are used to there. Welcome to the big boys game. You are not Carlos Goshn, you need experienced people to run Proton!!! Otherwise you will continue looking to government/petronas for money.

  16. Anonymous10:04 pm

    Dato' Rocky

    I don't think MIDA has any large amount Grants to give.

    I maybe wrong and that may be a good thing as such Grants to the tune of Millions a car industry needed can surely be distributed to much more profitable export oriented businesses.

    Usually small business Grants are given by SME corp. to small entrepeneur to start a BUSINESS and its not for R&D.

    Even the Green Tech or Renewable Energy industry does not have Grants only Goverment guarantee on the loans.

    But I do hear of Grants handed out by Northern Corridor Implimentation Authority to stimulate investment there.

    Here's hoping MIDA can be more transparent on the award of Grants like the Australian or Singapore Government.