Singapore financial publication reports that DRB-Hicom, which owns Proton apparently requested a RM1.5 billion loan to assist with new model development.
(FMT) – Has DRB-Hicom Bhd, the owners of national car maker Proton, sought a RM1.5 billion soft loan from the Federal Government?
This is the question that has arisen from a report in The Business Times in Singapore today, where it was revealed that DRB-Hicom had apparently requested for a RM1.5 billion loan to assist with new model development.
The article noted that Proton’s request would be tough to meet for a number of reasons, including a lack of funds due to low global oil prices as well as the strained relationship between its Chairman Dr Mahathir Mohamad and Prime Minister Najib Razak.
Former Premier Mahathir has been on a year-long campaign to oust Najib from office and most recently led 57 other politicians from both sides of the divide and civil society leaders to sign the Citizens’ Declaration calling for the prime minister’s removal.
The report also stated it was unclear if a similar request Proton apparently made in 2014 for a RM1.7 billion loan, had been approved.
Proton has not yet replied to FMT’s queries on whether it indeed sought a RM1.5 billion loan from the government recently.
Meanwhile sales for Proton last year dipped with the company only selling 102,175 units, a drop from the 115,783 it sold in 2014.
In 2015, Proton’s market share dropped to 15 per cent from 17 per cent the previous year.
In comparison, Proton’s rival, Perodua sold 213,307 units last year and maintained its market share of 32 per cent.
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