MITI: Proton free to source from any vendor

Deputy International Trade and Industry Minister Datuk Mah Siew Keong has issued a response to Datuk Shahrir’s comment on local content in Proton cars.

The Government encourages Proton to use as much local content as possible to develop the parts and component industry. This is also vital to achieve and maintain quality in Protons range of cars and for competitive pricing. Our car industry must have quality. Where it wants to source its parts from, that is up to Proton, but we encourage the use of local content. It’s up to Proton to decide the proportion of local content in it’s cars.

Well then, since according to Datuk Mah it’s not a government imposed rule, let’s see if Proton takes this path in the future as part of it’s struggle to improve it’s competitiveness. Datuk Mah agreed with Shahrir that automotive vendors who could not be compettive after 20 years should increase quality and competitiveness or close down.

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Paul Tan

After dabbling for years in the IT industry, Paul Tan initially began this site as a general blog covering various topics of personal interest. With an increasing number of readers paying rapt attention to the motoring stories, one thing led to another and the rest, as they say, is history.

 

Comments

  • E-Nabill on Oct 17, 2005 at 8:19 pm

    beieve me,as long as khazanah got substantial stake in proton,proton are neva free to do anyting,thats for sure…the government have to tink of local vendors first…

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  • drmuzi on Oct 17, 2005 at 8:35 pm

    do you seriously believe Proton will close down..hah…

    especially when it came from Shahrir word…not the higher authority..

    i think if proton close shop…Pak Lah and Tun M will be in very very heated war…and i know already who will be the loser…i think u also know who?

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  • …to tell the truth, currently everything 'pusing', 'pusing' and 'pusing'! this side talks one thing and the other talks another thing! how many G we have now actually ah in Malaysia?

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  • biothing on Oct 17, 2005 at 9:08 pm

    is it really because local Vendors employ Malaysian, and therefore many would be unemployed if Proton outsource from overseas!

    I am all for local Vendors ..that provide QUALITY PARTS!

    Govt don't imposed such a rule, but where do we differentiate? national car at what % local content? to get tax exemption etc.

    But TunM claiming it is all about Proton.. I don't buy it.

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  • SEE FU on Oct 17, 2005 at 9:10 pm

    I don't believed the PART cost and QUALITY control cannot be CHECKED BY POTONG. Every single parts including bolts and nuts has the Material Based and quality control information as mentioned on the DWG.

    Cost information can be checked easily by POTONG. If the parts cost is TRIPLE or TEN times higher than OVERSeas why they don't do double sourcing? Also why local made part are more expensive? Is it due to The Local vendor have to pay ROYALTY to Oversea Joint venture company and higher profit or undertable taken by someone?

    If Vendors make parts does not meet DWG SPECIFICATIONS who approved and agreed those parts can be installed on the VEHICLES? ……..The answers is POTONG Staff rights…. So Why blames VEndors?……….Who has the responsibility on the complete build car?……..The answers is POTONG too …..also not Vendors.

    YAU MO KAU……CHOU!! Quality and Cost up of POTONG cars mainly due to VENDORs? What a M******RON???

    Can you said your Nasi Lemak taste bad because of the garam and the eggs suppliers?? Only M***RON will accept this kind of excuses. We should blame only the owner of Nasi Lemak stall because he should know the taste before sell it to public!! RIghts?

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  • i was just thinking..sounds like local vendors are supplying to proton only, not other car manufacturers. If they're globally competitive, then the G wouldn't have to 'encourage' proton to get parts from local vendors. It's all the same… Proton are 'encouraged' to buy from local vendors just like we the people are 'encouraged' to buy proton so somewhere someone goes KACHIIING!!! Know what i mean?

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  • DOG THE WAN on Oct 17, 2005 at 10:02 pm

    Paul, I saw the new Rebadged Toyota RAV4 into Daihatsu BEGO already.

    Check this: http://response.jp/issue/2005/1017/article75330_1…

    Just Wonder when P2 will manufacture this BEGO to replace KEMBARA. I wish they will use this model next year. If selling price around RM50k to RM60, it will sell like HOT Cake in Malaysia.

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  • It's about time to wake up to reality and source for cheaper parts. The automotive industry isn't exactly getting less competitive by the day, even for the major brands. For a relatively low volume producer like Proton, unless if it's a niche producer with highly sought after products, it's not gonna survive long. M'sians are tired of paying too much and getting too little in return for too long.

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  • Michael Chua on Oct 17, 2005 at 10:24 pm

    Is it true that dosmetic versions of Proton are not as good as those exported to Singapore? If that's true, no wonder Malaysians are not flocking to buy the cars produced by their home country.

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  • Deodorant on Oct 17, 2005 at 11:09 pm

    That reminds me of 10-ish years ago complaining about helping with my parents' business, and them saying "hey we never force you to help us, you are free not to help if you think it's such a hassle."

    There's quite a difference between what OFFICIALLY goes on and what REALLY goes on, as most of us know :3

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  • eRis-Aeir4s on Oct 17, 2005 at 11:35 pm

    Exports are always of better quality than local ones. Either because we take it for granted , or are simply too lazy and unable to complain about it.

    For now since it states that P1 is 'free' , Get rid of those local vendors that give bad quality parts! Do keep the good ones though .. Now we have another problem , define good or bad quality parts.

    This will never end…

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  • Wilfred on Oct 18, 2005 at 1:22 am

    only ends if G stop intercept in….

    could that happen……….??????????? (U know i know)

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  • only i know this minority r moron dont no how to do business n know how to makan orang n take a fortune from other people n when there have it their dont no how to do it in more proper. like lanun.

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  • rainbow7j on Oct 18, 2005 at 3:54 am

    the key issue here is the transparency in choosing the vendor for the parts, no doubt there are many quality vendor right here in Malaysia, but due to many sensitive issue such as design patent right, IP, "right relationship" and all the bullshits, cause the quality issue which comes with every Proton cars.

    I think it is not easy to change this overnight, but it seems at least with Savvy, Proton has been able to do some improvement, ie. TUV. Lets see if TUV would conduct quality across the board, for each of the Proton's models. That would be very interesting.

    ps. I have a MyVi and I am very satisfied with the car quality and after sales service. :p

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  • adamckc on Oct 18, 2005 at 7:27 am

    i feel this is going to just another talk cock and do nothing staff..

    after 20 years if they wanted to improve they could have done that earlier.

    and our nations progress is always limited by the policy of restricting the vendors to certain bumi sources, and that is going to make us less in our progress for sure.. why no competition isnt it…it means lazy service la right.

    in my work place the sole maintenance provider medivest sdn bhd is so terible in providing their service, but because of cronyism (related to mahathir la) there is no other way but to use that unreasonable service… so do you think we could progress like our neighbours in such an uncompetitive environment ??…

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  • Sexythang on Oct 18, 2005 at 11:45 am

    i agree with adamckc. there is no competition between vendors. and definitely no competition for proton in msia. either way its lose lose.

    btw…..like someone said……proton needs a breakthrough product which everybody wants…..i mean like everybody in foreign markets want. with designs and concepts so terrible…..you cant put all the blame on vendors.

    another point. we can also develope the parts and components industry without proton. as long as other car marques flock in to our country to assemble thier cars. we might even be able to have a better industry advancement and profits without proton pulling everybody down. thailand has already outpaced us and is pulling further away by the day as long as proton receives protection and due to the fact we understand proton will never be able to compete with the rest of the car industry players no matter how long they have.

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  • delavirtue on Oct 18, 2005 at 5:37 pm

    Dr Mahathir: Proton might as well close shop
    http://www.thestar.com.my/news/story.asp?file=/20…
    ayayaya

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  • mitsu_galant_2000 on Oct 18, 2005 at 7:43 pm

    sejak dari kata mahathir, kalau susah-suah, tutup saja proton..

    hasilnya = Ramai orang TUTUP MULUT YANG BISING DAN BODOH itu dan bersikap diam.. serta telah mula menghargai apa itu PROTON ..

    a superb psycho by Mahathir..

    yeah , at least.. proton bring too much to malaysia.. just the way Normal and typical people dont see it.

    tanpa proton = tiada teknologi kereta.. dan tidak akan hangat pun pusat mobiliti kat malaysia nih.. maaysia pun orang tak tau ada tech ini tanpa proton.. apatah lagi dengan proton miliki lotus.. sedikit sebanyak proton menjadi punya teknologi kenderaan datang ke malaysia… tanpa nama -> punyai kepakaran dan teknologi .. tak mungkin TOYOTA, VOLVO, BMW, etc etc etc tuh lagi datang ke Malaysia! bahkan menjadikan malaysia pusat serantau ini..

    so.. SAYA (jika tidak mereka) Akan merinduimu Proton..

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  • biothing on Oct 18, 2005 at 8:35 pm

    ayo SEE Fu, I like your Nasi Lemak analoji loo, very good one. same goes with everyhting, like computer also la. Agreed P1 must have the 'brain' to get the right vendors. It's okay, now that TgM is out, perhaps they will improve.. Just wait for TunM to 'get out' and no more 'ADVISING' P1. He advises NAZA now, right?

    Any product we MAKE now must be for the 'global' market,not only for 'local' market, otherwise it's 'jaguh kampung' fenomenin only. If cannot MAKE, we BUY.

    Nasi Lemak suda basi oooo

    go go hybrid!!

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  • Proton close shop? I doubt so, atlease not our tun breath his last breath..thats why he is so 'rajin' to 'dig' out all this stupid AP story (he knows inside out) to put proton under the spotlight of being 'victimize' by this policy.

    Mine-Mine-Mine…instead of he telling wats the whole crap inside this AP policy he went to push his 'lovely' daughter to tell. wtf larrr old man!! He muz running empty on his head liao isit????

    Yea brother adamckc and sexythang u are damn right!!! cronyism have made proton in-competence…brainless mgmt had made the bzness sufferred a loss despite of its monopoly nature..and the custom has made no help by 'lenient' on the declaration…watelse we had not see??? Boleh ~~~!!! :(

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  • And SEE FU ~~~~ i LOVE ur nasi-lemak anal-logi :P maybe they should start to think of char kuay teow instead (made in China). 3 times cheaper than our local nasi lemak which taste bad and sour ~~~ Especially the POTONG harga!!

    YAU MO KAU……………………………………………………………CHOU!! :D

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  • drmuzi on Oct 18, 2005 at 10:02 pm

    hiyoo…why suddenly NSTP tone down their attck on Proton..

    And why suddenly Shshrir so quiet…not a single word or comment from Shshrir..

    Parlimen today saw heated argument about Proton After TUN M give a "sindiran" to shshrir comment..

    I think Shshrir may even lost his chances to be elevated to Ministership if reshuffle did materialise…as before most analyst thought he may be the FT minister.

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  • btw…if Naza can make kia carnival a 'national brand' car…further caren another 1…later 206 another 1, later sonata 1…later sorento, rexton, elantra, piccanto, cerato…

    Question: WHO WANTS TO BUY POTONG LAGI??

    guess wat? the person who close potong is our AP king Nazi-muddin!! Tun muz be loving him so much later ~~! :P

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  • alansm on Oct 18, 2005 at 10:43 pm

    Well, I worked for an alloy wheel manufacturer who design & sell OEM wheel to Plotong( u guess who lah). Let me let u know how much plotong earn from this type of venture. We sell them a set of wheel (4pcs) for around RM300~RM400. If u ever check how much plotong charge u for the set of wheel (around RM2000!!) And now go figure how much m$n$y plotong make.

    So those SOB in plotong earn crazy money from the rakyat and in return we get rubbish product (

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  • KL Lim on Oct 18, 2005 at 10:47 pm

    See Fu ,

    Which vendors are you working? LOL…. and i'm not from Proton..

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  • rainbow7j on Oct 18, 2005 at 10:50 pm

    I actually like the alloy sport rim on the proton cars now :p

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  • Lantis323F on Oct 18, 2005 at 11:27 pm

    This is slightly off-topic, just to share with u guys.

    I own a 1996 1.6L Mazda 323F (Lantis Hatchback) converted to a 2.0V6 with 170HP and LSD gearbox. The base model cost me RM39K and the conversion to V6 set me back another RM5K. So total is RM45K give and take…..

    On my way to Pagoh (Muar), there was this Satria GTI doing 120Km/h along the twisty stretches. And he refused to let me pass him, anyway, on one slightly straight road I managed to pass him – and pissed he was, tailgating and “cucuk” me from behind.. I allowed him to do that for about 1Km when enough was enough. Down-shifted to three, and the V6 screamed.. One minute later he’s no longer behind me.. Well.. I smoked him really bad.. Both in handling and raw power my Lantis is better…Now looking forward to smoke an R3 GTI.. hahaha. So much for Lotus partnership… I thank god for not buying a GTI a few years ago… Mine is an old 8-year old. But the build quality and finish is much better than that of most Protons on the road…

    Moral of the story is, if PROTON dead, I would be able to afford much better and more powerful cars… and not stuck with wanna-be’s like the GTI.

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  • drmuzi on Oct 18, 2005 at 11:50 pm

    Rover on receiverhip.

    Hyundai bought over bankrup KIa

    GM bought over bankrup Daewoo

    VW the so called saviour for Proton is laying workers back there in Germany.

    GM is in financial mess , with aging billionaire Kerkorian may came in pumping money…

    Fiat almost bankrupt

    all the above have lots of debts

    left with some still strong…namely Toyota, Honda, Citroen, Renault etc

    So Proton has no debt, billion of cash pile, never turn unprofitable in yearly basis. Able to stand on its own only after 20 years with own engine. Despite has to care for the unsrapulous vendor. So Proton is not that bad….as people think off.

    They just need to evaluate their vendors. Kick who are not well. I think Mahaleel did that just prior to his resignation with savvy vendors.

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  • drmuzi said,

    October 18, 2005 @ 3:50 pm

    I think Mahaleel did that just prior to his resignation with savvy vendors.

    —> Well I dun think he kick those under the cronyism…obviously not those who has watever mean of relationship with current politician, minister, advisor, BOD…..what makes the difference? You name it ~ :P

    Or perhaps he kicked some vendor related to current BOD…thats why he got kicked too wuahahahahha :D

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  • SEE FU on Oct 19, 2005 at 12:50 am

    Wah finally ppl understand what I want to explain….Fuuu…….uu!! Release!

    Thank you ABu and biothing …loving my Nasi lemak ….explanation.

    You guy should know lah, I am trying to explain something which is COMPLEX and maybe not easy to be understood, also there are not only Engineer or Lawyer or Rich man in this BLOG or website rights…..must try to explain it as simple as possible….until TUKANG cuci longkang man also can understand.

    KL Lim, I know you are one of the supplier of POTONG. Which part? …..I am a business man……all kinds of products sure has connection to me lah!! Guess what?

    YAU MO KAU…….CHOU!! Tell you!! No way!!

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  • Perhaps you are right. Because after TUV evaluation that give bad impact to existing vendors that is not up to standards, they complained to BOD and with some powerful figure protecting the vendors, TgM just a black goat being sacrificed.

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  • Deodorant on Oct 19, 2005 at 1:58 am

    "at least with Savvy, Proton has been able to do some improvement …"

    The entire left side of my Savvy rattles like a kids toy over bumps.

    Just saying, for no real reason in particular. I for one couldn't care less if Proton closed shop. The 100,000 or whatever jobs lost won't affect me directly, and I'm not old enough to feel any national car pride/nostalgia. Presumably the gov't will then cut tariffs for import cars; if they don't then I'll just get a kapchai and a rain coat, or something.

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  • this all from wayang kulit , even if proton close down there also TeX higher from import car. this gouvernement dont no how to get o do business any more only know how to burden our nationalise our Malaysians people . TeX high like a sky not reasonable at all. TeX this n that also us rakyat who pay for it . TeX height like sky this n that then Selle bag to us Malaysian, so do u think what this type of government do to Malaysian only burden to us instant of find other resources to earn n make better Malaysia. only stupid to help stupid. (biar rumah sundong action yang kita mahu), this is a type of people there R.

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  • michael lee on Oct 19, 2005 at 3:42 am

    " It is likely to focus on the ability of Malaysian component manufacturers who can take on the world."

    The quote was taken from Bernama reporting on the anticipated NAP and the issues involved. If this is correct, then why are we all complaining ? We can be suppliers to the world lah !

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  • hi i want to sell my booking for myvi due to financial shortage..

    get car next month. sms me 0122640930.

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  • aksMs on Oct 19, 2005 at 5:43 am

    abu said: "Or perhaps he kicked some vendor related to current BOD…thats why he got kicked too wuahahahahha….." – this one most likely is TRUE…. ;)

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  • 323F … juz wanna know what engine you put in . 170hp 2.0V6 ?? which engine . I never heard of lantis swapping a 2.0 V6 before . Most would put in a B8 turbo , the B8 half-cut alone manual would be around 3.5k and workmanship would set you back another 1.5…not considering changing the timing belts , sparks ..etc . LSD gearbox ? which type . My H22A set me back around 7.5k . The halfcut alone was almost 5k ( manual )

    And btw .. A B8 turbo on a Lantis might smoke a GTi in straights …but GTi actually handles really well in corners , what are your suspension settings and camber settings ? juz to find out . Take a look at Merdeka Millenium Endurance , GTi's are on par with integra DC5s etc

    btw …are you sure its a real GTi and not a GTi wanna-be ?

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  • FiveElements on Oct 19, 2005 at 6:21 am

    SIGH……………..I can see those in POTONG getting Fatter and Fatter…yeah freaking FAT.

    and the Rakyat getting so freaking skiny…thanks to national pride….

    we thought it is the national pride…people abroad might be laughing at us…it is a joke of the century….

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  • because i used to own a Lantis ..and couldnt find the KF-ZE , so i am interested in the place you could get it …and done for that price

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  • Deodorant on Oct 19, 2005 at 5:41 pm

    "hi i want to sell my booking for myvi due to financial shortage..

    get car next month. sms me 0122640930."

    Can you get arrested for this? Dumb question I guess, but until recently I'd never dream of car salesmen getting busted by the ACA for taking money to jump queue, either ;D

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  • drmuzi on Oct 19, 2005 at 8:59 pm

    all the brouhaha …suddenly shahrir samad backtrack as in Utusan today…i never ask Proton to close.

    i think he must be lonely yesterday at the Parliament….

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  • Initial D on Oct 20, 2005 at 3:51 am

    i think this opinions should be published in the newpapers for the government and proton management team to read . Somebody please do so!!!

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  • soya bean on Oct 25, 2005 at 11:34 am

    the worst thing was for some well-connected and but cannot-do-anything peoples/vendors to get filthy rich at the expense of the rakyat…there must be something wrong here…how come potong NEVER CHG THE POWER-WINDOW SUPPLIER EVEN AFTER 20 YEARS OF COMPLAINS?…yeah, some of u would say the ACA should investigate, but u know what? ACA also turns out to be a crony itself…it has almost never prosecuted rich/powerful people …everytime some rich politician were accused, ACA just acts and later when the rakyat forgets, they just let the politician/rich man go..

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