In May this year, second finance minister Datuk Seri Johari Abdul Ghani revealed the government will reimburse Proton RM1.1 billion as a grant for the national carmaker’s previous research and development (R&D) work. Recently, DRB-Hicom confirmed that the sum has been received by the national carmaker, according to a report by The Star.
“Perusahaan Otomobil Nasional Sdn Bhd (PONSB) intends to fully settle its syndicated loan facility and thereafter help Proton to part settle its shareholders’ advance due to DRB-Hicom from the remaining funds of the R&D reimbursement grant of RM1.1bil,” it said.
Proton had previously requested the government to reimburse some of the money the company invested into R&D, which is said to amount to over RM18 billion since the company’s establishment in 1983.
On September 29, DRB-Hicom and Geely Holding Group announced Li Chunrong as the new CEO of PONSB at a joint press conference. Other personnel of holding company Proton Holdings Berhad (PHB) were also revealed during the event.
DRB-Hicom and Geely hold 50.1% and 49.9% stakes in PHB, respectively. Meanwhile, PONSB and Proton Edar are 100% subsidiaries of PHB. For all three entities, DRB-Hicom has one additional seat at board level; matching the 50.1% stake that it holds.
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I thought company in private hands now? It is half DRB and half Geely. Why Gomen using our tax payers money for Proton?
Isn’t it better to build more Government hospitals and Government schools? Can build at least 10 fully fledged hospitals and 10 schools with that money. This will help the rakyat more.
Waste money pouring money on Proton. Shouldn’t Geely be giving the money instead of using our taxpayers money? After all, Geely sapu Lotus
DRB also sapu Proton’s land in Shah Alam worth RM5 billion. DRB should fork out money to Proton.
Poor Proton, lost Lotus and lost the RM5 bil Shah Alam land.
Proton has cost the rakyat, according to reports, RM360 billion since its inception in 1985.
This is because, since Proton started in 1985, all other car prices shot up many fold in price. So, in total, Malaysians have overpaid RM360 billion due to higher car prices.
Because of Proton also, Malaysia lost the title of being the Detroit of Asia. In the 80s everybody wanted to CKD in Malaysia. But because of Proton and the protectionism given to Proton, all car companies moved to Thailand. They could not tahan the fact that MITI told them to price their cars much much higher than Proton.
So, we lost hundreds of BILLONS USD in investments (RM trillions) and we lost hundreds of thousands of jobs.
Now Thailand Untung all this.
Smart Geely donate $170m, restart on clean slate.
Geely indeed very smart. Now already own Lotus the main prized asset of all.
As for Proton, Geely can simply burn few billions for 3-5 years (they can afford it btw) as obligation and then lelong it off again.
Hopefully by that time EPF, Felda, Socso etc can avoid it as forceful buyer cum rescuer.
The prized land in Shah Alam?
Cite the report please. I’d like to read it.
Spent billions of RM yet faulty power windows
Profit billions of RM yet ‘unable’ to install VSC, worse, lower spec model doesn’t even have ABS. Oh wai, but the special package really ‘value for money’ for ‘my beloved brand’ carbuyers.
Yes indeed. Proton have cost fellow Malaysians a massive RM360 billion from the time the first Proton rolled out from the Shah Alam assembly plant in 1985.
so malu. Already whole world know about Proton’s failure. Now asking more money. This year already RM1.5, RM1.8 and now RM1.1
Proton is a private company owned by drb so no problem.
Tahniah P1 r&d! Aircond sejuk syiok giler!!
Wira aircond sejuk. Lagi sepuluh tahun pasti megah lagi menyusuri jalan raya. Wira wira wira yeah!
Sayang nk buang Wira kiter, udah 22thn…
If you don’t already know, the R&D grant is offered to ANY Malaysian company that undertakes R&D. Even now, they can still apply for grants.
Geely bought Proton’s 49.9% for RM170 million and they don’t even have to pay Proton’s hutang at all. What a great deal!
But gomen spent over RM20 billion on Proton. Sadly, 49.9% of Proton is only worth RM170 million despite spending RM20 billion
Haters hate facts, so in love with myths…
P2 shud get higher R&D grants for super laku Bezza & new Myvi. Kih3
Why not? Perodua selling high volume high demand products a proven success that deserve more support and reimbursements.
Buat apa tolong orang malas bagi duit free.
Its a condition that government set last year to give proton that RnD money if only proton get a partner which is Geely
Figuratively donating 505 million to Geely. Job gooding !
Daylight robbery
Cave fact
Geely only invest chicken feed RM 170 juta.
Tax payers foot this rm 1.1 Billion bill to pay Proton’s debts.
Thats why Geely insists they start with virtually no debts,except inheriting thousands of deadwood staff and suppliers which they will wield the axe.
DRB should use their profits from Honda sales to pay hutang.You call this privatisation?
Privatisation with MASSIVE GOMEN BAILOUT.
Just shambolic and disgusting.PTUI..
Your jeounis overlord oso got bailouts and it was in bigger scale
So what,? We dun care what japanese want to do with their taxpayer money.
how sure are you its tax payers Money only? so those GLC like PNB, Sime Darby, Petronas, FGV, UEM are not paying taxed to the government? your income so high meh?
Cut expenditure from Education and Healthcare and grant proton R&D request which is a private entity. What up???
R&D grant every company in Bolehland can apply, local or foreign fyi. Even u can apply those grant if u do R&D.
Obviously some people here don’t understand about the R&D grant. It is NOT GIVEN but REIMBURSED.
Any company who have carried out R&D activities can apply for it with all the necessary proof and documentation – car companies like Perodua, Nissan Toyota, Perodua, etc can also apply. So can a Cili sos factory, Razor blade company, Biscuit factory, Beer factory, etc, etc.
If I’m the minister I’ll only reimburse it to those proven companies that shows the R&D really works producing saleable products that can generate big sales (and more taxes to govt too), employ more workers, expand bigger factories.
If you keep on reimburse money to loss-making failed company, it is a self-defeat and pure comedy to the govt only. What a shame!
Proton truly deserved their R&D grants for Iriz EV. Bravo P1!
this is how the proton brand will still exist in Malaysia market…. make you all sentimental feeling.. when its dying.. goment will use our tax payer money assume we happy to help proton.. #$%^&* proton should close down immediately!!! and stop sucking our hard earn money for their idiot work. those cronies happily keep their pocket full full.. if proton can work, its already number 1 in south east asia!! after so many years and money pump in. logistic location good also.. but yet.. its a big failed!!!
Beggar
Oh btw, what R & D? RM18 billion R & D? Proton has just been rebadging cars all this while. Only real invention is Campro engine.
Like that, can Perodua, Nissan ETCM and Honda also ask Government of Malaysia to reimburse whatever they invested since 1983?
Pity Nissan, Perodua and all other car companies also. They also deserve to be reimbursed.
P2 honda malaysia nissan malaysia have r&d ka?
P2 Bezza the best!
2tone colour & change tyre rims for facelifts, Proton r&d.
I’m happy to report that last year I predicted Proton would see its demise in Sep 2017. Happy to see it come true….. :) :) :) :)
You think Proton’s demise means cheaper foreign cars? In your dreams. Those duties & taxes are Gomen major income.
Proton …
1. Protectionist policies from the government.
2. Soft loan, hard loan and macam macam loan lagi.
3. R&D grant (What have they R&D btw?)
4. Government agencies, taxi, Uber are supporting them.
and they still losing money…. sampai company pun terjual 2 kali in the span of 5 years.
“What have they R&D btw?” – Simple, they Re-badge & claim it as Development. P1 think we are all stupid.
Ohhh…It’s Re-badge and Development.
Painted Exhaust Pipe in Perdana ! First in the Automotive Industry !
Unlike another well-publicized “donation” more than twice this amount, this one is real, and the source is indisputable.
why won’t they release the two tone rims for persona?
RM1.1 wasted, but still no SUV
Soft loan tu bila mau bayar? Sempat lagi pau duit tu
Cant you read the agreement?
The soft loan to DRB by govt is actually the RM1.2 billion RCCPS (redeemable convertible cumulative preference shares) with maturity date 30 Nov 2030, held by govt/Finance Ministry’s Govco Holdings Bhd. While the amount remain unchanged, the terms saw some revision, changes few times eversince on asset disposals/exchange in the event of RCCPS non-redemption by Proton.
PaulTan should do another article about this Proton soft loan and all it’s possible impacts/scenarios to better inform all of us. (Or maybe got related article earlier but the RCCPS terms have been revised few days ago thus a need for new article about it too).
Just because it can be reimbursed doesn’t mean Proton feel it deserved or it’s a right for it. You look at how successful the R&D in generating sales profits thus merit itself and worth reimburse it. Don’t you feel embarrass knowing your poor results yet still claiming back the money? A reward for a failure? No iniative to rectify failure as long as money returned?
This is where govt got it wrong and keep wasting silly for fun. Best of all no need for dewan rakyat debate or approval for such amount. No wonder Proton doesn’t really care especially its car design that always annoy car buyers which in turn causing it to lose huge sales.
If this nonsense of rewarding failure still continue then sorry to say to you lah Proton, the trust is completely gone from the rakyat. That Rm1 billion can easily hire 1,000 European car designers to reverse your fortune but you’re not. Nobody gonna believe your excuses anymore. Good luck also to Geely. Enjoy your teh tarik and kuih lapis here while burn Rm1 billion each year. Adios!
if u know R&D. u know that R&D use a lot of capital n time. Now u know why many bolehland company donwan invest in R&D. That is why R&D grant is exist.
Yes solving power window problem by giving lifetime warranty instead. So much for R&D indeed.
I believe the soft loan was part of the deal.
This year R&D dept can close shop.
No money no talk.
Anyway it’s a lost cause.
No use whipping a dead donkey.
So much put into R&D when the sales numbers don’t justify its cost.
Grants? For what ? This money is paid to geely so they complete the deal. It was all obvious that geely took proton for free and only paid for lotus. Gov paid geely to take it. What a great deal? There are so many companies and universities waiting for grants in Malaysia for years and always gov says no lonely but for proton money comes fro heavens. Please stop this nonesense and do so real work. I respect the gov for trying to help and bring back biz but not for proton. Please help others who are true and not a bunch of deadwood wannabes like proton and drb. I bet in a few month we will see geely pulling out same as Honda and rest.
Sorry, when did Honda pull out, and pull out of what? It was a one car deal.
please check news 2014 when Honda pulled out. their deal was platform sharing AND JV and many aspects not only the failed perdana cars. it was arrogant ways of DRB and Proton than made Honda go out. we will see the same with Geely soon.
Perdana. Don’t blame you.
You can’t remember cos they are hardly on the road. Govt officials also don’t wanna be seen in one.
Another lost cause. Just rebadge and losing millions paying royalty. And again putting millions into R&D similar to Inspira.
Lotus handling which no one gives a damn.
R&D on bodykit again?
Wrong brand dude. That title reserved to Perodua.
Proton TuneD bodykit. R&D on bodykit…
Proton R3 race rally research. Tutup kedai juga.
Basher say Geely gonna save Proton but all we see is Gomen giving Proton billions every year
Govt itself already said previously no more bailouts for Proton.
Saya percaya janji itu manifesto yang dicapati.
Good names always reuse good names.
For example Honda Civic was Honda Civic and it is still honda civic. If Nissan Almera was still called Datsun Sunny or Chevrolet Cruze be called Opel Kadett, no one will buy them.
Proton Wira was a great success. There is no Proton Wira today because Proton today is unable to make a car as good as an old proton wira. a 1997 proton wira running on the road today is far more dependable than a new CVT base whatever today!
Only poor people drive Proton Wira nowadays. No matter which generation you are driving. Ohh, and poor wannabe racers. Get a real car.
Proton shame on you.. still asking loan from Rakyat.
Honestly Proton should remain rebadge other manufacturer vehicles, we buyer don’t mind whatever badge u put on because we know the car will be good problemless, plus rebadge vehicle spare parts are cheaper ( local made ) , if owner decide to buy good parts they always got choice ( imported spare parts ) , rebadge vehicle would also benefit those HALF CUT SHOP / COMMUNITY .. u know JDM – MDM
people lost interest on this brand. so can we say just close it down?
just like F1, people lost interest, stop doing it on Sepang like that boss said…..
Yes we only need one national car which is Perodua.
Buat apa banyak-banyak jaguh global. Satu pun cukup lah.
The RM 1.1 billion worth R&D is for manufacturing car badges, buying double sided tapes…..later for use of rebadging.
The remaining RM is for making specel edition decals that would give extra 20hp.
haha..always say money go to RnD..actually money go to pay vendor and staff..since a lot hutang xbayar..