KUALA LUMPUR: A Chinese automaker has a strong potential to become Proton Holdings Bhd’s foreign strategic partner (FSP) owing to China’s strong economy and its vast market, said a senior lecturer.
Zarinah Yusof of Universiti Malaya’s Faculty of Economics and Administration said China has a massive market access and a strong consumer purchasing power due a huge surge in its middle and upper-income classes, making it the best choice for a FSP.
“With its economic advancement, China is willing to offer good technology (to Malaysia).
“So, it is not impossible for China to become a foreign strategic partner to Proton,” she told reporters at the Malaysian Economic Association Forum on Economic Governance in the Public Sector Governance, here yesterday.
Zarinah said China has a broad consumer base and this would benefit Proton in its quest to expand into the Chinese market, as well as for the Chinese FSP to leverage its sales success particularly in the Asean region.
She said Proton would also have a competitive advantage in terms of the exchange rate in China.
“If we were to look at China, the exchange rate (of renminbi) is more stable (compared with the US dollar and euro), thus giving higher value to Malaysia’s investment,” Zarinah said.
A recent Reuters report said Chinese carmaker Geely is leading the race to become Proton’s next strategic partner. -FMT