Saturday, January 7, 2012

'Khazanah cannot save Proton'

Khazanah is too busy with other investments. Its boss Azman Mokhtar also has to focus on other GLCs and as such, he looks a bit handicapped to attend to Proton's woes.

This is what the founder of Proton Tun Dr Mahathir Mohamad meant when he put Khazanah to task - that Azman and Team will not be able to save Proton and put the company back to the level it once reigned.

The former premier appeared to back a management buyout of Proton Holdings, saying the national car maker needs proper attention and 'somebody more focused' to help it recapture its share of the domestic passenger vehicle market.

He pointed out that at present, national investment arm Khazanah Nasional, which owns 42.7 per cent of Proton, could not afford to focus fully on turning around Proton's flagging finances.

“Khazanah has a lot of other investments... it cannot give focus to Proton. I think we need somebody to be focussed on Proton. Proton needs proper attention and also, Proton needs money.

“If you want to do anything in this industry, it is not about RM1,000 or RM2,000... It is RM100 million, RM200 million... it is a very expensive business and whomever comes in should have the capacity to support it financially,” Dr M, who is also Proton adviser, said.

Khazanah is said to have put its entire 42.7 per cent stake in the national carmaker up for grabs, and confirmed it has received several proposals of interest. As at today, three firms have indicated an interest.

Proton chairman Nadzmi Mohd Salleh has also openly indicated his interest in purchasing Khazanah’s controlling stake in the national car maker, suggesting during a recent interview that Proton needs to sell part of its stake in Lotus, slash costs and increase exports to recoup some of its losses in the industry.

He is believed to be up against business tycoon Syed Mokhtar Albukhary for the bid.

Dr Mahathir also said the on-going discussion between Proton Holdings Bhd and US based-General Motors Corp (GM) on the former's Tanjung Malim manufacturing facility plant is expected to resolve in a 'win-win' situation, hence brings about some benefits to Proton.

Media reports said Proton is in talks to sell up to 50 per cent of its stake in its Tanjung Malim plant to GM for between RM700 million and RM800 million.

"I have not heard of any party taking over the plant, but about using the power plant, yes. What they want is to do part of their production in Malaysia," he told reporters after a gathering between Prime Minister Datuk Seri Najib Tun Razak and Selangor industrialists in Shah Alam today, hosted by Proton.

"We are sending our people to discuss with them next week and with a firm commitment from both sides, we will see it from there," Dr Mahathir said.

GM, a global automotive company develops, produces and markets cars, trucks and parts worldwide. It also provides automotive financing services.

GM is the home of Chevrolet, Cadillac, Buick and GMC. If GM kicks off its production in Proton's Tanjung Malim plant, the move would support the global company to reduce their cost as well as benefit Proton, particularly in full utilisation of the plant and technology transfer.


12 comments:

waja owner said...

azman is also getting complacent. there were calls for his removal from khazanah. i guess he has been there too long and is too tired!

so, how to save proton in his present capability?

Anonymous said...

of course dr m is alarmed about proton's situation.

with khazanah bosses cannot guarantee proton will be revived, its stakeholders are already making noise.

so, the best option is a MBO by its key personnel.

penangan said...

salam,

khazanah sibuk sangat dengan portfolio yang ada, invest sana, invest sini.

invest boleh tapi jangan abaikan portfolio yang sudah ada.

proton ialah kebanggaan negara. kalau khazanah tak mampu selesaikan isu ni, cakap je... mesti ada orang boleh selesaikan!

Anonymous said...

let azman stay in khazanah as long as he wishes and as long as pm approves.

we will see the demise of not only proton but other glc!

lim gone eng said...

to khazanah - better sell off proton to foreign companies!

that will save their headache!

after that, we 'import' proton at higher price!

ok or not?

ex-proton manager said...

jagalah proton dengan baik. ia maruah negara. kalau runtuh, runtuhlah nama baik negara dan kita sebagai rakyatnya.

kalau tak mampu nak uruskan proton, serahkan kepada mereka yang mampu dan berupaya. mesti ada orang yang sanggup.

janganlah dianaktirikan proton... sedih memikirkan masa depannya...

kundur said...

makin lama makin bengap orang2 kat khazanah holdings ni.

eloklah tukar dengan team yang baru je...

Anonymous said...

Sell Proton on the cheap so that a crony can make an easy killing. Why not sell off Malaysia to the red dot down south so that it will be better managed?

Anonymous said...

Dulu RTM ada program dunia sana -sini. SEkarang Khazanah da ambil geleran itu. You only know the value of money when you work for it.Otherwise it is easy come easy go. Money is like water. Its use is related to absorbtive capacity.The IMF has been trying to tell us this but we kicked it out. When the cup is full it will overflow into undesirable investments or buying property at inflated prices. Just see even Tiger Woods' wife bought a house for US12 million a year ago and has pulled it down to build a new one. Why easy settlement money.

This type of economics was undertaken by the communist regimes of Eastern Europe and all of them became failed states and are now sponging on the EU and draging it down the drain.

Government is government and business is business. They are like oil and water and do not mix. These two must be seperate and the close business government cooperation is a policy mistake. The sooner we admit it and correct it the better otherwise we will become like those failed Eaastern European states.

zana said...

proton ni macam dah dianakritikan oleh khazanah.

mentang2 la dah main peranan besar dalam jcorp!

long john silver said...

jai,
aku rasa top management yang ada di khazanah sekarang perlu diganti dengan team baru kerana 'the longer their stay, the worst it will become'!

Anonymous said...

The only way to save Proton is to keep changing the CEO every two years. This will just give him enough time to clear the old mess and preventd him from creating new mess.