This is breaking news. The Straits Times Singapore has reported Volkswagen has scrapped it’s plans for a tie-up with Proton.
According to Reuters, Volkswagen told Khazanah Nasional that it’s strategies have changed, and a production plant in the South East Asian region is no longer priority at this point of time. Instead, focus has been shifted to the Russian and Indian markets.
Proton shares dropped 7% since this news reached the ears of investors. Apparently Singapore Straits Times got hold of this information via an exclusive interview with an unnamed government official with insider news on the deal. There are still no official announcements anywhere, and both Khazanah and Proton have no comments.
For the moment, Singaporean newspaper Straits Times is the only one with this piece of news, and they are only quoting unnamed sources. It makes me wonder why the Straits Times can be allowed to publish such a story without any identifiable sources. Why would a Malaysian government official give information to Singaporeans?