In his latest blog post, Tun Dr Mahathir Mohamad exclaimed that Proton isn’t to be blamed for high car prices in the country. This follows the Proton chairman’s defensive call for Malaysians to test drive Protons before critically judging them.
“We are not the cause of car prices being high. What support we get from the Government is also given to other companies because of local content. We have almost 90% local content; so we pay less excise duty,” said Mahathir.
His comment responds to car buyers who believe that the reason for car prices being as high as they are in Malaysia is because of the government’s need to protect the affordability and appeal, of Proton vehicles in the country. However, Mahathir believes that Proton’s position is just.
“Since its founding, Proton has paid more than RM24 billion in taxes while receiving only RM14 billion in excise duty cuts, not cash. Yes, we have received a part of the research and development grants the industries have been promised,” he explained.
“Taxes on motor vehicles are causing the prices to be high. But the Government needs to tax motorists because of the roads and other infrastructures that the Government has to provide,” wrote Mahathir.
The former Malaysian prime minister also made an attempt to further grow favour for Malaysian-made vehicles. He said that buying foreign make vehicles only results in money flowing out of the country, benefitting foreign economies and workers.
The chairman’s opinion is to strengthen the local auto industry by encouraging Malaysians to buy locally-made products, keeping hard-earned money here to avoid becoming “a failed third-world country.”
“Malaysia is a trading nation. We export and we import. If imports exceed exports, we will not grow and prosper,” said Mahathir. He also clarified that Proton hasn’t been able to export vehicles in the UK for some time now because of the country’s new emissions and fuel efficiency standards. However, recent initiatives have been put in place to change this.
“The development of the new Proton engines by our engineers working with Ricardo of the UK is going to make us once again able to meet the conditions in the UK and Europe. We hope to export our cars to these countries once again,” said the Proton chairman.
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AI-generated Summary ✨
Many comments emphasize that Proton's high car prices are due to government protection, cronyism, and overcharging from vendors, not Proton itself. Several argue that policies under Mahathir’s leadership favored Proton's dominance and inflated prices, hurting Malaysian consumers. While some acknowledge recent improvements in Proton, most believe the company faces structural issues caused by protectionism, poor vendor quality, and mismanagement. Overall, the sentiment is critical of Proton's role in maintaining high car prices and its negative impact on Malaysians.