PM Najib: Will you retain a loss-making company? Answer is obvious

In an apparent reference to Geely Automobile Holdings Ltd’s acquisition of a significant stake in Proton Holdings Bhd, Prime Minister Najib Abdul Razak said the answer is “obvious” whether or not to retain the loss-making company.

“Some people seem to think that it is better to have loss-making companies that are 100 percent Malaysian owned – instead of a smaller percentage in a company that stands to gain access into bigger markets, economies of scale, and cutting-edge technology.

“I ask you, which one will create wealth and jobs for Malaysians? The answer is obvious,” he said at the opening ceremony of China Construction Bank (Malaysia) Bhd in Kuala Lumpur today.

In his speech, Najib had lauded the various benefits of China’s investments in Malaysia, as well as the increasing number of tourist arrivals from China to Malaysia and exports from Malaysia to China.

He argued that turning away investment would be bad for the country, and his critics who argue that the investments are “too much, too fast, too soon” should go campaign on a platform of trying to delay Malaysia’s development.

Under the deal of the Proton sale, China’s Geely would acquire a 49.9 percent stake in the national carmaker from the government-linked company DRB-Hicom Bhd.

Geely would also acquire 51 percent of the British sports car brand Group Lotus Plc, which was a wholly owned subsidiary of Proton Holdings. The remaining 49 percent would be acquired by the Malaysian firm Etika Automotive Sdn Bhd, which is linked to the tycoon Syed Mokhtar Al-Bukhary.

Former prime minister and staunch Najib-critic Dr Mahathir Mohamad, who played a key role in founding Proton, mourned the sale of Proton shares to foreign interests.

“I am a sissy. I cry even if Malaysians are dry-eyed. My child is lost. And soon my country. Please excuse me.

“As I slip into my final years, month or days, I will watch as our beloved country is sold to foreigners to settle the trillion ringgit that we owe. We will have to sell more and more...

“What are our assets? Our land of course! That was what we did in the past.. We lost the land we sold. That is what we are doing now. And that will be what we will have to do - or forfeit our country like we forfeited Proton.

“It is probably the beginning of the great sell-out. The process is inexorable. No other way can we earn the billions to pay our debts. The only way is to sell our assets. And eventually we will lose our country, a great country no doubt, but owned by others,” he wrote on his blog on May 25, a day after news of the sale broke.

However, International Trade and Industry Minister Mustapa Mohamed said Geely has a proven track record and could provide a boost to Proton’s performance.

Finance Minister II Johari Abdul Ghani meanwhile reportedly compared Proton to a “sick child” who needs his medicine.

“We cannot be too sentimental about this. We also need to think about the fate and future of the 10,000 Proton staff including the suppliers and vendors if the carmaker can no longer compete, or needs to shut down,” said Johari.- Mkini