Mustapa

Despite penning a very critical statement regarding Proton’s myriad problems last month, international trade and industry minister Datuk Seri Mustapa Mohamed has said that national carmaker is not a failed company. The federal minister told Parliament that although the national carmaker has received RM13.9 billion in aid of various forms, its contributions to the nation is worth a whole lot more.

As reported by The Malay Mail, Mustapa said in a written reply that Proton has contributed around RM24 billion in taxes since 1985, and created over 12,000 jobs for Malaysians. Furthermore, over 500 supporting firms have been created in the automotive industry thanks to Proton.

“It is not true to say that Proton is a failed company. This is because since its establishment, Proton has contributed a lot to the country and given benefit to the industry,” he said. The aid for Proton is in the form of grants, tax exemptions and other non-fiscal assistance, Mustapa added.

In April, the minister released a statement declaring that Proton’s business model is not sustainable, and that the company will need to improve drastically. The company has been approved for a RM1.5 billion soft loan to aid in its recovery efforts, which Mustapa said recently is well on track.