Tuesday, July 24, 2018

Proton Bull cost taxpayers additional RM360 billion since 1985

From Malaysiakini by P Gunasegaram:

... another national car project would be a colossal mistake. It would distort the car market further because such a car cannot be economically produced and will result in even higher taxes on other cars.

Proton was one of Mahathir’s huge failures when he was prime minister from 1981 to 2003 costing taxpayers an additional RM360 billion at least in taxes since the first Proton rolled out in 1985.

As a matter of urgency, one of the new policies of the Pakatan Harapan government should be to forge ahead with a phased rationalisation of the car industry so that there will be no taxes on cars. This was done in Australia several years ago. This article explains it in more detail.

Despite a public outpouring of resistance against a third national car project, Mahathir is recalcitrant and still seems set on his pet project and reviving this failed, outdated policy of his yet again. He said he discussed with the Indonesian president the concept of an Asean car on his recent visit there.

Considering the abysmal state of cooperation within Asean and all the difficulties of the car industry, this will be a road to perdition if implemented. We are already suffering for 33 years already.


  1. The Book-keeper and the Economist won't let the old man have his way on this one.

    The Malaysian car company Proton 1.0 will soon be introducing the "Boyue" SUV, but it will be re-named for the local market of course. Initially it will be fully imported, then assembled locally in Tanjung Malim. In the meantime Proton 1.0 is in discussions with Indonesian parties to introduce existing Proton models (Exora, Suprima, Preve, Iriz, Saga etc) into the Indonesian market. The Tanjung Malim factory is capable of producing 150,000 units per year and can be expanded to a million units but Proton today sells barely 80,000. With the huge market next door it will really boost Proton 1.0 unit sales and bring the cost of production down but only if Proton 1.0 can manufacture at the designed capacity of 150k and beyond. Proton knows that. Geely knows that. Geely wants that. No need to start another car company or build another car factory. Just a Proton 1.0 JV with Indonesian partner(s), and maximize the capacity of Tanjung Malim and we will have a rockin car company, not quite global in scale and reach but at least regional. By the way Geely has global presence, they own Volvo and is the largest shareholder of Mercedes Benz. They manufacture more than 15 million units globally.

    1. doesn't serve Mahathir's personal-private ambitions to build his own car (but at taxpayers' expense)

    2. Boyue SUV has cool look and feel...2 thumbs up. Of course the name will be changed...Boyue is no go, hehe...it sounds like "no juice" in Hokkien lingo, hahaha...takde minyak...tak boleh jalan LOL

  2. Let TDM have his toy car model TDM Model 1 built and exported all over the world.

    That will soothe the old man's ego.

    1. While we pay for it to the tune of RM 360Billion, and a rickety public transport infrastructure that was finally getting a shot in the arm by the previous administration but now got shot in the back by Mahathir again? Are we that crazy? Maybe we are.

  3. Sky is falling........So says Cheebye Motherfucker kaytee.....

    Don't care, don't bother till Najib and Rosmah heads roll......More important

    and perhaps Kaytee mampus and his blog closes shop

    1. you must be deaf - told you i did NOT fCk your mum

    2. Thou doth protest too much. Hehehe.

  4. Taxes ? - Strictly speaking the additional taxes, probably Excise duties on non-National cars are not necessarily an additional cost to the country - it depends on how the money is spent.
    Taxes spent on hospitals, schools is seldom wasted.

    GST Pom-Pom Girls like Ktemoc still refuse to recognise that the Additional RM 20 Billion a year in Taxes from GST was a Tax Hike.
    GST was Projected to cost taxpayers additional RM 300 Billion over the next 10 years.

  5. TDM's National Car taking shape...and hopefully can penetrate Indonesia.

    Perak to help Proton expand its factory in Tanjung Malim
    Bernama | July 25, 2018

    It will expedite the land approval so that the production process can continue with no disruption.

    Perak exco Mohammad Nizar Jamaluddin hopes that the facilities at the Shah Alam Proton plant will be transferred to Tanjung Malim.

    TANJUNG MALIM: The Perak government is prepared to provide an additional site to Perusahaan Otomobil Nasional Sdn Bhd (Proton) for the company to expand its business.

    State Investment and Corridor Development Committee chairman Mohammad Nizar Jamaluddin said the company’s factory in Tanjung Malim was being upgraded in line with its strategic partnership with Zhejiang Geely Holding Group (Geely), a company from China.

    Now that Proton is expanding its business, it requires a larger area.

    “So, the state government will help, including to expedite the land approval so that the production process can continue with no disruption,” he told Bernama after visiting the Proton factory here.

    Also present was Proton deputy chief executive officer Radzaif Mohamed.

    Nizar said the provision of the site was part of the support given by the state government to ensure Proton continued to grow to provide employment opportunities for the local community.

    This included the production of Geely Boyue sports utility vehicle (SUV) by Proton, scheduled to be launched in the fourth quarter of this year.

    He also hoped that the facilities at the Shah Alam Proton plant would be transferred to Tanjung Malim.