The threat to Proton jobs and Dr Mahathir – Ice Cream Seller

Proton Holdings Bhd Chairman Tun Dr Mahathir has reportedly been complaining about the loss of jobs if the competition in the local car market is opened up. Well, I believe some remarks made ought to be put in a different perspective.

1. Closure and loss of jobs for workers – engineers and managers

Firstly, you should not have created this parasite that morphed into a behemoth.
Managers hone their skills in a competitive environment. Proton didn't provide that and their managers probably won't be able to survive in a level playing environment.
Whose fault is that?

Engineers – their skills could have been better deployed in so many other industries that create real jobs and produce goods for the global market instead of our 'tempurung' market.

A self respecting automative engineer would want to be with the likes of Mercedes, BMW, Toyota, Nissan, Hyundai – car brands that are innovative and synonymous with reliabilty.

Workers – we are short of workers and instead of wasting their efforts in Proton, they could have been better deployed in other segments that cry out for workers. We could have reduced our reliance on foreign workers too.

2. Comparing apples to oranges

Well I agree with Dr Mahathir in this case. All other car makers given our kind of support that Proton received manufacture 'apples'. Proton on the hand manufactures 'oranges' (lemons more correctly) so, yes – we are not comparing the same things.

3. Japan, Korea, China and Germany have imposed conditions and standards which prevent Malaysian cars from being exported there.

If I am a Japanese, Korean or German consumer, why would I want to buy Proton?

I admit I don't know what the standards are, but even if I am a Chinese national, I would rather buy a locally assembled foreign car.

Using your apples and oranges analogy, why would they want to buy an orange when an apple is what they want?

An apple a day keeps the doctor away.

Do those countries have an AP system like ours?

Speaking of conditions imposed, look at the conditions Proton placed on local suppliers. Conditions on equity ownership, pricing and quality.

We could have just imported better quality components and cheaper parts. It was rent seeking even making a car!

4. Consumers in Japan, Germany, Korea and China cannot enjoy the benefits of competition like their Malaysian counterparts

If I was in Germany, I would be happy if my choices were limited to BMW, Mercedes and Audi.

If I was in Korea, I'd be happy with the limited choices in Hyundai, Kia, Daewoo (now GM) and SsangYong.

If I was in Japan, I'm happy to be restricted to Lexus, Toyota, Nissan, Mazda, Honda, Isuzu, Suzuki, and Daihatsu.

In other words – and to put it simply – they are all better cars!

5. Buying foreign brands means money going out

This is true. Then again,  isn't it also true that a lot money has flown out through illicit means as a result of dubious purchases of properties overseas?

Kickbacks paid for deals to be approved in Malaysia, inflated procurement prices for services, goods and equipment. Do they sound familiar?

Buying foreign brands is nothing if you have earned the money to spend. Look how much we have wasted in building 'soul-less' cities like Putrajaya, Bangi and Shah Alam – white elephants all over the country and a bloated, gluttonous civil service. The list goes on.

In the 80s, I was given a Proton Saga 1.3s as my first company car. I only used it for a year or so as it was 'upgraded' to a foreign make.

But I can say one thing, it by far better than any entry level model Proton has since made. To use your parlance, our apple morphed into an orange. And who and what do we blame for that?

So, yes, I wish the haemorrhaging in Proton stops. It needs euthanasia.

With one parasite less, things ought to improve – the redeployment of scarce resources to where they are economically needed for the best interest of the country.

Not one man's dream, but a nation's nightmare.

- TMI