Despite foreign stakes, MITI says Proton and Perodua are still national car companies

The Ministry of International Trade and Industry (MITI) maintains that Proton and Perodua are still to be treated as national car companies due to their contribution to Malaysia's automotive industry, reports Bernama.

MITI Deputy Minister, Liew Chin Tong, explained that the criteria for Malaysian vehicle projects include having a majority local ownership, focused on developing local supply chains, carrying out local development work, and providing employment opportunities.

"Proton also appoints more than 180 Tier-1 local companies in its entire supply chain and the average value of local procurement is between 75 percent and 80 percent, especially for models that are fully developed locally," explained Liew.

This is in addition to Proton having provided job opportunities for 8,500 people, with 99 percent of them from the local community.

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Liew explained these in response to a question from fellow Member of Parliament, Lee Chean Chung, who asked why Proton was still awarded various special treatment since it was only 51% locally-owned.

However, Liew maintained that the two named car companies need to ensure that the criteria as outlined under the National Automotive Policy 2020 (NAP 2020) must be followed.

“With the criteria laid out under the NAP 2020, any company other than Proton and Perodua that can meet those criteria is also eligible to be considered as a national car project and be given similar treatment,” he said.

Hence, he said MITI will constantly monitor Proton and Perodua's compliance to the criteria that have been laid out, and will update the policy from time to time in keeping with the development of the automotive industry as a whole.

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