Despite having signalled the need for a merger in the automotive industry – essentially between Proton and Perodua – sometime back, the government will not force both companies to merge, according to Datuk Seri Mustapa Mohamed, the Minister of International Trade and Industry.
In a Bernama report, Mustapa told reporters today that any solution or proposal would have to be agreed to by both stakeholders, saying that the government cannot force the companies to make a decision, given the long spectrum involved.
“At one end is loose cooperation and at the other, a merger, which has yet to be decided,” the Minister said today, adding that “it’s a major collaboration and cooperation between Proton and Perodua and not a straightforward process.”
He said that the government would encourage and have talks with both companies, adding that in reality, it made sense for the two companies to collaborate and make the automotive industry competitive.
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AI-generated Summary ✨
The comments on the blog post reveal mixed feelings about the proposed merger between Proton and Perodua. Many critics believe merging could reduce competition, lead to lower quality, and monopolize the Malaysian car market, raising prices and stifling innovation. Some argue that Proton's slow technological progress and reliance on outsourcing, such as Lotus’s handling expertise, undermine its competitiveness, and worry that a merger might harm Perodua’s reputation. Others see potential benefits if collaboration leads to shared technology, increased efficiency, or local industry growth, but emphasize that without government support or ownership stakes, the merger remains unlikely or unfruitful. Overall, sentiments lean towards skepticism, with concerns about losing local automotive diversity, quality issues, and national pride.