Govt paying RM222 million annually to rent Protons

Proton_Perdana_Accord_ 003

The government has been paying a total of RM221.6 million per year to Spanco Sdn Bhd as part of a 25-year agreement to rent a total of 10,963 Proton cars for official use, The Star understands. The ministry announced to the Parliament that several Proton models were currently rented out on a monthly basis, with costs ranging from RM973.84 and RM3,288.84 per model – bringing the total to RM18.47 million per month.

In a written reply to Teo Kok Seong (DAP-Rasah), the ministry stated that the models rented were the Proton Perdana (2.0 Executive and 2.4P), Inspira, Persona, Preve, Waja and Saga. Teo had earlier asked the ministry to clarify number of models rented by the government since 1993, along with the costs incurred.

The Proton Preve proved the most popular model as a total of 3,518 units rented monthly with a cost of RM1,572.77 per unit, bringing the total monthly figure to RM5.53 million. A total of 2,127 units of the Proton Inspira 2.0 were rented per month at the cost of RM2,147.68 each, making it RM4.57 million.

Proton_Suprima_S_vs_Preve_ 011

Other models include the Waja, with 2,466 units rented at RM1,296.85 per unit and the Proton Saga, of which 1,061 units were utilised each month at the cost of RM973.84 per car. As for the Proton Persona, 442 units were rented on a monthly basis with each unit costing RM1,114.66.

The Proton Perdana 2.0 Executive is rented at a rate of RM2,892.32 while the 2.4P variant costs RM3,284.84 – a total of 709 units of the former were rented while the latter, 486 units. Spanco is responsible for supplying, maintaining and repairing all the cars rented by the government – the agreement expires in 2018.

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Gregory Sze

An “actor” by training, Gregory Sze realised that he has had enough of drama in his life. Following his number one passion (acting was actually number two), he decided to make the jump into the realm of automotive journalism. He appreciates the simple things in life – a simple car with nothing but back-to-basics mechanical engineering and minimal electronics on board.

 

Comments

  • protonfan on Jun 17, 2015 at 6:44 pm

    I should marry with CEO of Spanco Sdn. Bhd’s daughter

    Well-loved. Like or Dislike: Thumb up 102 Thumb down 3
    • Albert on Jun 17, 2015 at 7:58 pm

      Dear protonfan, are you sure you want to marry the daughter of this dude?Do you know his ‘telur’ stinks? You want to angkat his bola? The rakyat will be cursing this idiot for abusing taxpayer’s money.
      Be a man.Stand tall.Don’t be a partaker of hell.
      People who take short cuts by abusing others have only one final resting place….the ABYSS.

      Well-loved. Like or Dislike: Thumb up 58 Thumb down 7
      • Jimmy on Jun 17, 2015 at 9:41 pm

        RM222 000 000 can buy > 2000 Proton Perdanas with 5-year warranty and 5-year free service, if proper negotiation is done during the fleet/contract purchase.
        This is the price of one year rental of 5.5 x 2000 of Protons of various models.
        Meaning that, Government can use this amount of money to buy a new fleet of 2000 Protons every 5.5 years. Or, 2000 new Perdanas every years with 5-year warranty and 5-year free service.
        If the maintainence if fully done by the contract company, instead of Government, and the Protons provided are all new and to be used for not more than 5.5 years, then that company earns the 5.5-year resale value of its Proton cars.
        Remember also that if the cars are not yours, you tend to use it in a relatively rough manner.
        Rough fair calculations.
        This does not sound too bad, compared to what you paid daily, to be increased by 29% that one.

        Instead of giving one big cake to one friend, we might as well give one quarter of the cake to 4 friends, no big deal, it is a game. You made noise because you did not receive the cake; you will make fair comments if you receive some.

        Like or Dislike: Thumb up 33 Thumb down 6
        • Nick.C on Jun 17, 2015 at 10:08 pm

          Your maths is off a bit. Remember that if the government had bought it directly instead of letting a Sdn Bhd buy it and then rent it to the government Each unit of Perdana would only cost ~RM60,000 each, as government cars are tax free.

          Like or Dislike: Thumb up 32 Thumb down 3
          • Proof of Proton keep sucking the rakyat’s money. The price we pay for cars are only to feed to feed the cronies and Proton supporters ego

            Like or Dislike: Thumb up 23 Thumb down 15
          • qttre on Jun 18, 2015 at 6:03 am

            You dun understand , read again

            Like or Dislike: Thumb up 5 Thumb down 4
        • cakebake on Jun 17, 2015 at 10:49 pm

          So which one is you?

          Like or Dislike: Thumb up 0 Thumb down 0
        • There goes our LHDN money. Thanks Proton!

          Like or Dislike: Thumb up 12 Thumb down 6
    • We always say Sam Loo is a joker dai lan ngong, but now we understand in fact he has a sifu or master name called Gomen, the super duper sohai dai lan ngong.
      Now, here comes the biggest gong gia sohai dai lan ngong — that’s you & me who pay tax to the Gomen.

      Like or Dislike: Thumb up 22 Thumb down 5
      • George Abdul on Jun 17, 2015 at 10:39 pm

        If this case were break in any develop country the company will long been suspended and the directors and shares holder will bring to custody investigation !!!

        BUT UNDER “bolehland cronies system” by Tun DrM all of this will be under control… and IGP don’t even BALLsss to touch them.

        Like or Dislike: Thumb up 13 Thumb down 3
      • taxfree on Jun 17, 2015 at 10:50 pm

        You can go to tax-free country, noone stops you.

        Like or Dislike: Thumb up 10 Thumb down 25
        • don’t want to pay tax IS NOT what he meant … Try to read again, too many Malaysian like you…

          Like or Dislike: Thumb up 8 Thumb down 2
    • CEO of Spanco Sdn. Bhd on Jun 17, 2015 at 8:26 pm

      Sorry but you can’t afford to marry…. but for a low low price, why not rent?
      Our deluxe daughter is available at RM3,2XX per day; or how about our most popular daughter for only RM1,5XX per day; and for the budget conscious, our economy class at only RM9xx per day. So what are you waiting for? Come on down and test drive her today!

      Like or Dislike: Thumb up 35 Thumb down 3
      • Jimmy on Jun 17, 2015 at 9:54 pm

        Do you know that a lot of offices are rented, why don’t big companies purchase every premises to run every businesses?
        How do we know that it is better for Government to purchase new vehicles for staffs instead of renting (imagine a proton is an office)? It is you who think it is absolutely better to purchase a shop than rent it.
        If you were Najib, you probably will do the same; things are not as simple as what you think.

        Like or Dislike: Thumb up 21 Thumb down 12
        • hulwan on Jun 18, 2015 at 8:29 am

          Please don’t compare cars with properties. The amount of information is not sufficient for us to make a conclusion whether the deal is good or bad, but comparing rental of properties to rental of cars is not a good argument. How many companies actually rent cars to be used by their staff?

          Like or Dislike: Thumb up 12 Thumb down 5
        • iGP mom on Jun 20, 2015 at 5:54 am

          Please la. People rent for cheaper cost, and what this is news tell everyone is that the govt purposely rent to spend and increase cost. When rent is more expensive than buy, no businessman will rent except govt. Use your brain and compare apple to apple, not just saja hantam.

          Like or Dislike: Thumb up 5 Thumb down 1
    • ken ken on Jun 18, 2015 at 2:09 pm

      HAHAHAHAHHAA , oh come on .PROTONFAN has a point . its either he participate in corruption or he is against it . there is a multimillionaire club where they earn money like this . If i have jalan i would do the same , its not dirty tactics ,its a way of business that many people making an honest living cannot accept .XP

      Like or Dislike: Thumb up 1 Thumb down 0
  • with this amount of rental every month.
    Proton no need to sell car to public.
    Proton can just focus rebadging other car at lowest cost, rent it to goverment. I have been waiting goverment to reduce car price by 30%!

    Malaysian need to aim to be globally competitive, focus on international market.
    1. Malaysia to be major ASEAN major car hub.
    2. Attract all global player to make manufacturer plant.
    3. Attract internation car parts maker set up manufacturer plant.
    4. supply assembled cars to ASEAN.
    5. supply cars parts to other ASEAN for thier CKD.

    Malaysia have more and more engineers, both local engineers and foreigner engineers.
    Make it a sustainable industry.

    Like or Dislike: Thumb up 21 Thumb down 12
    • the bad is that rental amount is not applied to proton but to spanco sdn bhd…

      read the article first

      Like or Dislike: Thumb up 23 Thumb down 0
  • ProtonGSC on Jun 17, 2015 at 6:54 pm

    No wonder Proton and Tun DrM “cronies buddies” never closed down !!!

    Spanco sdn bhd just one of the cronies company thousands more still not yet review…

    Tun DrM saviour of Cronies !!!

    Like or Dislike: Thumb up 39 Thumb down 4
  • nandakumar on Jun 17, 2015 at 7:01 pm

    So that how tax payers money being wasted.
    amazing jibby and his bloody clowns.
    but jibby is on BENZ who is paying for that rental?
    This nation not only have to suffer the burden of failing to own a decent cars but condemned to the maximum of having F***ed up government for swindling rakyat money and luxury of car.

    Like or Dislike: Thumb up 43 Thumb down 3
  • Cheaper to buy rather than rent, no?

    Like or Dislike: Thumb up 36 Thumb down 1
    • kid zz on Jun 17, 2015 at 7:51 pm

      Everyone know that simple theory in term of costing. But UMNO cronies need to feed up. BTY did mention rental in putrajaya gov costing?

      Like or Dislike: Thumb up 22 Thumb down 2
  • Makese on Jun 17, 2015 at 7:08 pm

    damn.. now Proton are f*cked.. Jib will bring its down since tun put pressure on him to step down.. because one person try to remain power, he rather let ever things to collapse

    Like or Dislike: Thumb up 19 Thumb down 2
    • W204 C63 AMG on Jun 17, 2015 at 8:02 pm

      If Najib close down Proton, I will vote for him next GE, enough of all the bullshit spewed by Pakatoons and Mahathir.

      Like or Dislike: Thumb up 8 Thumb down 15
      • carrrental on Jun 17, 2015 at 10:54 pm

        You read the article or not? p1 dun give rental service

        Like or Dislike: Thumb up 10 Thumb down 2
      • IGP mom on Jun 20, 2015 at 6:08 am

        Admit it, your vote has always been BN. Only a macai use the word pakatoon.

        Like or Dislike: Thumb up 2 Thumb down 2
  • Thanks to DRB-Hicom on Jun 17, 2015 at 7:18 pm

    Gov pays, DRB-Hicom put all of them into their pockets and put the blame on Proton. Thanks to DRB-Hicom, I guess.

    Like or Dislike: Thumb up 17 Thumb down 1
  • cendol (Member) on Jun 17, 2015 at 7:19 pm

    This issue has been around for donkey years.
    Year in year out is still Spanco.
    So this time around, expect no changes in anything.
    Another day goes on in Bolehland.

    Like or Dislike: Thumb up 34 Thumb down 1
  • Walao! paying so much per month but ended up the no ownership on the cars??

    Like or Dislike: Thumb up 27 Thumb down 2
    • Dunno on Jun 17, 2015 at 7:46 pm

      I think this is what they call leasing.

      Like or Dislike: Thumb up 19 Thumb down 0
      • But too much for leasing right?
        With that cost it is better to hire purchase..

        Like or Dislike: Thumb up 0 Thumb down 0
    • Albert on Jun 17, 2015 at 8:03 pm

      Bradder,even if gomen owns and buys the cars…they will be silently sold cheaply to related parties in a closed tender system,in afew years time.IT makes no difference.
      In communist China,those abusing power will be sent to the firing squad.Here,everything is subject to “KAMI AKAN MEMANTAU”,Relax.

      Like or Dislike: Thumb up 11 Thumb down 1
  • ………..WTF??????? and they’ve been doing this for 20 years……….

    Like or Dislike: Thumb up 12 Thumb down 1
  • Dunno on Jun 17, 2015 at 7:45 pm

    How is this Tun M faults ? The government is the one decide to rent it, and the only reason why they rent from spanco is because its cheaper. How do u expect the government gonna rent a honda city for RM900 a month ?
    Just being realistic.

    Like or Dislike: Thumb up 7 Thumb down 16
    • George Abdul on Jun 17, 2015 at 9:27 pm

      This contract have been years before Tun DrM resign as PM.

      Read properly before comment… All cronies company are thanks to his arrogant support !!!

      Like or Dislike: Thumb up 15 Thumb down 2
    • IGP mom on Jun 20, 2015 at 6:11 am

      By your logic, just because govt cannot rent a Honda city for $900 per month, it is ok to rent Proton for up to $3.5k per month! Brilliant, you are so qualified to join UMNO.

      Like or Dislike: Thumb up 2 Thumb down 1
  • Semi-Value (Member) on Jun 17, 2015 at 8:23 pm

    and every menteri has another luxury car at home…just saying

    Like or Dislike: Thumb up 23 Thumb down 1
  • So who pays for service, maintenance and repairs?

    Like or Dislike: Thumb up 6 Thumb down 0
    • Alson P on Jun 17, 2015 at 8:40 pm

      Spanco is responsible for supplying, maintaining and repairing all the cars rented by the government..

      Like or Dislike: Thumb up 20 Thumb down 0
  • DPCraft on Jun 17, 2015 at 9:36 pm

    “RM973.84 and RM3,288.84 per model” I didn’t know proton is worth to rent for that much.

    Like or Dislike: Thumb up 4 Thumb down 2
    • That cost for a “MONTH” and not “DAILY”… I have rent 2 days old 2.4L Honda Accord (Similar to so call Accordana) for 6 months before from Eastern Car Rental & cost me RM3k a month.. This RM3k is “Harga Kawan2” coz others car rental quote me RM3.5k to RM4K a month…

      Like or Dislike: Thumb up 16 Thumb down 3
      • abuden on Jun 18, 2015 at 9:03 am

        Try renting from your kawan for 25 years, I’m sure he’ll give you a cheap price. The ironic thing is that even 3k of prevent rented out to gomen I still rarely see them on the roads :)

        Like or Dislike: Thumb up 3 Thumb down 2
  • Bodoh on Jun 17, 2015 at 10:07 pm

    Malaysian are very good people…will forget this matter after few days…

    Like or Dislike: Thumb up 4 Thumb down 0
  • What asset do our government own? Putrajaya also rented.suck a lot of money from people, yet have high debt.
    All goes to cronies pocket.

    Like or Dislike: Thumb up 2 Thumb down 1
  • Spanco is owned by government as far as I am concerned.

    Like or Dislike: Thumb up 4 Thumb down 1
  • Vknes on Jun 17, 2015 at 11:06 pm

    What’s million when billion also can be gone. Of course, there will be justification for it which would be total nonsense.
    MALAYSIA IS BOLEHLAND AND NOTHING IS IMPOSSIBLE HERE.

    Like or Dislike: Thumb up 2 Thumb down 0
  • clutch_plate on Jun 18, 2015 at 8:30 am

    Buat apa sewa dari Spanco sedangkan boleh je kalau nak terus deal dengan Proton??? damn!! lot of wastage!!

    Like or Dislike: Thumb up 2 Thumb down 0
  • NoProtonMonolpolyforTaxi on Jun 18, 2015 at 9:01 am

    They don’t want any liability in owning the car. Lets say the car is totaled in an accident, it’s replaced at Spanco’s cost. If they own it, they have to fork out RM60k to buy a new car. That’s why they rent. But to be honest Spanco does overcharge a lot. If not then Terengganu won’t buy that Merc not so long ago…

    Like or Dislike: Thumb up 4 Thumb down 1
    • IGP mom on Jun 20, 2015 at 6:04 am

      How is this making sense? Govt enforce every car to have insurance. Insurance cover of max $2k per year is enough to cover a totaled Proton car to get another. Why pay $36k every year??

      If you have not realize, this is simply daylight robbery of the money, using excuses to siphon money away.

      But not surprising people like you continue to support when even 1mdb screwing up billions and dragging the country to its knees is still tidak apa.

      Like or Dislike: Thumb up 3 Thumb down 1
  • Abe ja on Jun 18, 2015 at 9:26 am

    Wahhh..so many2 smartass here meh?

    Comparing gov leasing scheme which might includes;
    1. Total repair and maintenance cost
    2. Responsibility in cases of accidents and total loss
    3. Replacement scheme with a new model when the current has reached the end of life (hence the 25 years.dont be an arsehole by thinking they are paying same amount for the same car for 25 years.)
    4. Insurance, liabilities, etc.

    How can you compare this with your own outright purchases? Not an apple to apple comparison maaa.

    Like or Dislike: Thumb up 15 Thumb down 2
    • Spanco ceo on Jun 21, 2015 at 6:46 pm

      Finally after scrolling from top, your comment are the one that spot on. There are reason for leasing instead of buying like your post
      Too many “smart” kid leave comment here that think they knew everything.

      U x suka come and see me at the office la.

      Like or Dislike: Thumb up 1 Thumb down 0
    • MrPutrajaya on Jun 22, 2015 at 10:03 pm

      Perfect answer. It’s not as easy as you think by buying it outright. Ofcoz spanco slightly overcharges due to work hours put into organizing the whole service. And the gomen just doesn’t have the manpower to handle maintenance of these cars at required urgent times.

      Nevertheless, the gomen is still looking at not renewing the contract. We are researching the possibility of handling the maintenance by ourselves if the cost can be greatly reduced.

      Before u call me smart Alec, I’m from MOF. So I know stuff first hand.

      Like or Dislike: Thumb up 0 Thumb down 1
    • All new cars come under warranty right? I believe the manufacture defective will cover under warranty without additional cost imposed.
      Furthermore, insurance will cover the cases for accidents and total loss.

      The total cost of owning the vehicle is cheaper than so call “outsource”! Being a Malaysian, i think most of us know the real purpose of outsource =)

      Like or Dislike: Thumb up 0 Thumb down 0
  • wow easy money for spanco….shd hav apply for position there

    Like or Dislike: Thumb up 2 Thumb down 5
  • jet law on Jun 18, 2015 at 11:15 am

    Don’t talk only, I hope somebody will take action and review the agreement.

    Like or Dislike: Thumb up 2 Thumb down 0
  • CEO rental car on Jun 20, 2015 at 10:57 am

    Who is CEO of Spanco…. anyone dig out?

    Like or Dislike: Thumb up 1 Thumb down 0
  • crony of cronies on Jun 22, 2015 at 3:19 am

    it’s easy,you definitely knew it was crony because the company make easy money,zero risk,profit all the way.try to remember all others sdn bhd company ; perimekar selling submarine,beta tegap aes,ytl cheap notebook with overprice, mystery company supply dakwat kekal,puspakom,nfc and bla2..why all these companies have been awarded contract with direct nego without public tender? because we are Bolehland.

    Like or Dislike: Thumb up 2 Thumb down 0
  • Winners takes all.Penang takes all,so do Selangor and the kelantan state government.Why all the hiccups?Writers do say from theirs personal experiences.

    Like or Dislike: Thumb up 0 Thumb down 0
  • BN always Boleh on Jun 24, 2015 at 5:43 pm

    Japanese car rental but proton experience…wow….

    Like or Dislike: Thumb up 0 Thumb down 0
 

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