AFTER taking a ride in the world’s fastest electric car at the Sepang International Circuit on March 17, our prime minister’s fascination with automobiles would inevitably be pushed to another level.
He advised Malaysians to be supportive of the new car project as we still have a lot to learn in the automotive industry.
Under the leadership of Tun Dr Mahathir Mohamad, Proton and Perodua were launched in 1985 and 1994 respectively. With more than 30 years of involvement in the automotive industry, it is sad that we know so little about this industry.
Let’s not forget, Lotus, a British sport car manufacturer founded in 1948, was owned by Proton since 1996. With so much technical know-how tapped from Lotus, we are still lagging in the automobile industry.
In 2016, the government had to come to Proton’s rescue by granting it a RM1.5 billion bailout package. In 2017, Proton allowed Zhejiang Geely to acquire 49.9 per cent of its shares.
The size of the local automobile market is too small to accommodate three national car players.
What happened to Proton after acquiring Lotus in 1996? It continued to lose its market share to Perodua domestically, let alone compete effectively in the overseas market.
The government should focus its energy and resources on developing industries with more prospects. Malaysia has a huge potential in attracting foreign investors to set up trade and financial hubs here due to its strategic location and good infrastructure.
Now is not the time for us to dabble in risky ventures that may lead to failure and unnecessary bailouts.
PATRICK TEH
Ipoh, Perak