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Malaysians Laugh and Cry Over Proton's new Chairman, Dr Mahathir - Koon Yew Yin
Koon Yew Yin
Publish date: Mon, 26 May 2014, 03:25 PM
Koon Yew Yin
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An official blog in i3investor to publish sharing by Mr. Koon Yew Yin.
All materials published here are prepared by Mr. Koon Yew Yin
All materials published here are prepared by Mr. Koon Yew Yin
When I read the news that former prime minister Tun Dr Mahathir Mohamad had been appointed as Chairman of Proton Holdings Bhd., I could not help thinking that most Malaysians will be laughing and crying at the same time with this disclosure.
According to the report, Datuk Seri Najib Razak said that "I believe Tun's appointment will certainly strengthen Proton, given's his determination and high commitment to see the national car company succeed. Although there are many challenges ahead but in the pursuit to improve Proton's competitiveness, I believe the company would accrue many benefits from his profound experience and knowledge.”
Why Malaysians Are Laughing
Malaysians are laughing because Dr. Mahathir has been de facto chairman of Proton ever since it was first set up. And even after his resignation as Prime Minister in 2003, he has continued to pull the strings on government policy on Proton. Therefore, there is no need to make him chairman unless it is to pay him the large salary that is normally paid to the Chairman of a very large car manufacturing company.
Earlier reports had mentioned that Dr. M who was serving as the adviser of Proton after he left the prime ministership position was not being paid a salary or allowances for his services. Perhaps the decision to formalize his position at the top of the company is simply Najib's way of compensating Dr. Mahathir with big bucks for keeping his mouth shut on Najib's poor leadership of the country.
Why Malaysians Are Crying Over Their Cars
At the same time, Malaysians must be crying with this news. They are crying because it is Dr. Mahathir who has been the chief catalyst and cheerleader of the national car project since 1983. It is an undeniable fact that this white elephant project has not only cost taxpayers billions of ringgit but has also burdened Malaysians with some of the worst cars found on Malaysian roads.
I don’t think it is necessary for me to go into the two fundamental mistakes Dr. Mahathir made in pushing for the national car project. The first mistake is a basic Economics 101 rule, and this is that unless there is an enormous internal market such as in China or the United States, and we can take advantage of the economy of scale, small producers such as Malaysia are forever doomed to a minor placing, or bankruptcy, in the car marketplace.
Even medium sized European countries with larger national car markets cannot compete. Of all countries in the world, only South Korea alone has been able to overcome this small national market limitation; and this has been due to the exceptional quality of its management capability, high technology and worker skills and discipline.
Played out by Mitsubishi
As far as Proton is concerned, Mahathir’s mistake in ignoring the economic fundamentals of the industry was compounded by our lack of expertise to produce cars, the low quality of Proton managers, our unskilled labour and our reliance on Mitsubishi for the anticipated technology transfer.
That technology transfer from Mitsubishi did not take place. This should have been expected. Why should Mitsubishi transfer their know-how to Malaysia when it can control the pace of transfer to maximize its profits? Mitsubishi knew that Proton could not do without them and they were quite happy to continue making money from Proton while the company here continued to bleed to death.
Government increased import duty to protect Proton
To induce Malaysians to buy Proton, the government increased the import duty for other cars and car parts. As a result, the consumers have suffered. For over 30 years Malaysians have been crying over having to pay higher prices for all cars including Proton. Even this has not been sufficient to save Proton which has been sold five times already. The end result is that a minority of affluent Malaysians have ended up with more expensive cars of other brands whilst most Malaysians have had little choice but to buy Proton – a poor substitute.
Sack Dr. Mahathir
With Dr. Mahathir’s appointment as Chairman of Proton, Malaysians can expect to cry more when their car prices not only remain high but go even higher if Dr. Mahathir has his way to protect the national car with even greater levels of handicaps against foreign cars.
Instead of appointing him as Chairman, Prime Minister Najib Razak should have sacked him as the Proton adviser! Unfortunately this has not happened. The burden of the highest car prices in the region is the price we have to pay for brainless nationalism and equally brainless leadership on our national car project.
Why not let Proton crash like MH 370?
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Discussions
22 people like this. Showing 50 of 71 comments
how proton want to grow, when the top management only see the money grow in their own pocket??????
2014-05-26 21:51
Just one word: Incompetence and all in the name of Ketuanan. This guy doesn't change. Same class, same mentality as Ibrahim Ali. He has never been a PM for all Malaysians. There is nothing left for him to destroy.
2014-05-26 22:05
There is no benefit for an average Malaysian car consumer who earn the lowest wage compared to their counterpart in USA, Germany and Japan to buy sub quality Proton with low safety standards but at prices where their foreign counterpart could easily buy a much better built, higher quality car of similar make but with much higher safety standards.
When will the average Malaysian car consumer wake up from this slumber?
When will these average Malaysian car consumers ever wake up and realize that Proton had demonstrated over the past 20 odd years that it had no real definable competency in making quality, competitive cars with high safety standards that can compete in Malaysia and the world markets? Why feel proud about Proton when Proton had not demonstrated any achievement in producing quality, competitive priced cars with high safety standards that Malaysians can indeed be proud of?
When will the average Malaysian car consumer realized that they had all along been conned for so many years?
2014-05-26 22:17
wow, I think it is better for appointing Mahatir as MAS's CEO TO SAVE IT ...... HIOHIHII
2014-05-26 22:22
The most SHAMEFUL history for Potong car happened sometimes in 93-96, "proton saga" was as if so good in selling and not enough stock, not because its quality but rather incapability of factory to produce enough cars for customers, which ended up many customers had to pay under-table money to potong sales men in order to get their cars in shorter time. Imagine car sales men could earn under-table money, this would not happen in any other places in the world except bolehland ! (buying second hand cars from the potong sales men and paid more expensive price than the brand new car price)
2014-05-26 22:25
Appointing an economic incompetent as defined by Jim Rogers in page 52 on "HOT COMMODITIES" to turn around MAS which requires economic competent CEO?
Can an economic incompetent transform into an economic competent?
2014-05-26 22:27
Corrections: My early post I used the word "vibe" - vibration.
1). What I meant to mean was "vile" - despicable.
On reading the responses above, a word to describe the reactions from readers is "vided" - divided.
Thank goodness that remarks has not gotten more vile. And I hope readers accept my accidental typo (misspelling) and learn a new word as I did.
2014-05-26 22:38
sunztzhe ,
Mahatir just shout and all the Mas Employee Union Tikus will run away, so he can cut the workforce by 50% without problems,
Next, He just shout to cut and terminate all expensive Contracts and not many have the Guts to object lor....
Next, he will open his mouth to ask PM to donate 20-40 Billions RM and hihi.... MAS will be on course to moderate recovery lah....... hihihii
2014-05-26 23:10
What to revive crappy Proton! Easy! Ban all japanese, korean and European car imports! Importers can only sale China cars in Malaysia! 5 years later, Proton sales cant keep up with demand! It's a case of buying a Proton scrap or buying junk yard scrap cars from China! Problem solve!
2014-05-26 23:49
Hehehe....Fortunebullz , maybe that will also stop car theft becoz it's worthless to steal a proton....or China car...
2014-05-26 23:53
Barbarian! Police dont have to chase china car theft! It will break down if trying to speed off!
2014-05-26 23:54
Self selling for scrap metal lor......but poor tax payer still got to pay pay pay....
2014-05-26 23:56
Almost all china car dealerships in Malaysia close shop! Not a single china car brand survive beyond 3 years in Malaysia!
Compare to Proton, problem with Proton is too much cronies to fed! At one time, Proton was so popular they just cant keep up with demand! And Proton salesmen used to be among richest salesmen around!
I dont think any one will miss Proton if close shop today! Volkswagen was the best deal Proton should have taken! Tun Mahathir justification that if Proton close shop, 200 thousand workers will be layoff simple doesnt make sense! We all know only cronies will be the biggest losers! You just cant fool us like 20 years ago!
Proton Saga current model is so bad that its alignment cant be fix due to low quality of its platform! Please raise your hand if you find your new Proton Saga has faulty aligment! Chances are you are among all current Proton Saga owners having the same low quality platfrom problem!
Time and time again Proton keep telling us that quality will improve! And time and time again, quality getting bad to worse! I suspect these cronies supplying parts source from China!
2014-05-27 00:06
Let me tell you a riping off wealthy car buyers! Mercedes Benz parts all made in China! So most rich mercedes benz owners parting half a millon for a ripe off parts with expensive badge!
2014-05-27 00:11
A lot of them seem to condemn proton cars but contrary I personally feel that it is quite good when compares to some foreign cars.My friend's proton saga is 17 years and my proton is 14 years,they are still performing very well and we can safely reach Genting highlands without any difficulty.They seldom break down unless the spare parts wear out and need to be replaced.
Surprisingly my relative's foreign car broke down after 2.5 years,engine was boiling and fortunately he spotted it on time if not it was beyond repair.My the other two relatives' foreign cars which are used for less than 10 years are giving them great mechanic problems and become unreliable,now they either use their wife's car or buy another new car.
For your information all taxi cars are using proton brands yet they survive well even they are highly over utilized with high mileage.
I will buy another proton if I change my car as they are good and reliable and not giving me much mechanic problems.
Fortunebullz,all the spare parts of handphones are made in China maybe you got to change your phone to an European brand then you can get non china spare parts.
2014-05-27 06:44
The old Proton Saga cars were fitted with Mitsubishi engines made in Japan. So why not buy Mitsubishi then instead of buying Proton? How much will a Mitsubishi cost you then? For that matter the old Toyotas, Mercedes without the complex electronics were even better. Without the government protection for Proton, how much would you pay for a Toyota or a Mercedes then?
Without Proton and the government protection for Proton, will u pay higher or lower price for a new car? Will u have more choices of new cars to choose from? As a consumer with limited budget do u want more choices for selection or only make do with Proton?
Is an average Malaysian car consumer earning an average income which is much lower than the average incomes in USA, Germany and Japan better off with Proton or without Proton?
2014-05-27 09:15
Guys, spend some time watch Top Gear and you'll be amazed, proton is actually better compared with other model produced by big manufacturers. We only see the model here in Malaysia and our automotive scope is too small. Expand your scope and knows what happening out there and you'll start saying things differently.
2014-05-27 09:16
Sunzthze! Old Proton are based on Mitshubihi models! Its like Perodua today! Perodua is nothing more than rebadge models! I bet latest Perodua EEV model based on Daihatsu Ayla! In fact all Perodua models are based on Daihatsu defunct models! Proton used to rebadge the last one was wira! You can find tons of japanese parts for old Protons and Perodua! You can even transform you made in Malaysia Proton or Perodua into japanese made!
2014-05-27 09:21
Hahaha Paying good money to buy new defunct but rebadged models whereas the average car consumer overseas pays good money to buy the latest models!! This is truly Malaysia Boleh! Hahaha
2014-05-27 09:48
I am very sorry that I made reference to the mysterious disappearance of MH370 because when I was completing the writing of the article, I just wanted to fire my last shot at Dr Mahathir.
I now realise that it can hurt the feeling of some sensitive readers, especially those related to the innocent victims.
My humble apologies!
2014-05-27 11:16
Being a small country we do not enjoy scale of economies when compare with big nations having local market to absorb high fixed cost for high industries.Hence to compete well we have to develop our research and development unit to a very high sophisticated standard and need real smart innovative people to be there.
But having so many stupid cronies inside the company the real brilliant individuals who are not willing to work under them and will prefer to work in companies where their intelligence and hardwork are respected and recognised so whoever is inside will have great difficulty of solving its problems and bring it to a higher level.The eventuality of Proton will be like Mas,hopeless unless their cars are sold in the third countries which do not produce cars.tend the
So to improve they have to remove the useless ones esp in the research and design staff and put real smart professional there and axing the rest eventually.
2014-05-27 11:17
The British Experience
Consider the case of British Leyland a vehicle-manufacturing company formed in the United Kingdom in 1968. It was partly nationalised in 1975 with the government creating a new holding company. The company incorporated much of the British owned motor vehicle industry, and held 40% of the UK car market.
Despite containing profitable marques such as Jaguar, Rover and Land Rover, as well as the best-selling Mini, British Leyland had a troubled history. In 1986 it was renamed as the Rover Group, later to become MG Rover Group, which went into administration in 2005. This ended mass car production by British-owned manufacturers.
Today, many British car marques have become owned by foreign companies. For example MG and the Austin, Morris and Wolseley marques have all become part of China’s SAIC Motor Corporation Limited.
We should have avoided this expensive mistake
Why did Dr. Mahathir not learn anything from the disastrous British car industry experience is something that completely escapes many Malaysians? Surely any good leader would have got his officers to do due diligence. If they had done so, they would have found that the industry even with year on year rises in sales is not guaranteed to generate good returns to shareholders, even in a highly developed economy with a long tradition of successful car manufacture such as Britain?
This is because one of the forces that limit profitability is the intensity of rivalry between car companies from around the world. This leads to oversupply and pressure on prices. This is exacerbated by a high degree of freedom for new competitors to enter the industry.
Unless there is an enormous internal market such as China’s or the United States and we can take advantage of the economies of scale, small producers such as Malaysia are forever doomed to a minor placing or bankruptcy in the market place.
2014-05-27 11:31
Dear Mr Khoon,
The economics behind is actually sound however as always the implementation of it leaves much to be desired.
Lets take a look at the Singapore side to try to understand the correlation. Though it is not exactly apple to apple the principle is very similar. Lee Kuan Yew was complaining in the 60s that Singaporeans were spending their discretionary income on Japanese akai radios, mercedes etc resulting in huge outflow of sing dollar that do not remain in Singapore domestic economy and benefits only Advance countries that have the technology to produce them. As a result to limit the outflows and to increase gov coffers to build infrastructures CPF was created and later COE for cars. What this does is instead of feeding fat cats from other countries the money remain within the country.
That is where Singapore got the money to build so many HDB at below market price early on and able to provide homes to almost everybody who...can work.
Malaysia was greedy and much corruption has seeped in the system. As you said Mr Khoon blind nationalism and racialism. Singapore use the money gained to further strengthen their economy, human capital, education, tech etc. Malaysia got AP Kings, monopoly kings that collects the rent and into own pocket.
2014-05-27 11:58
always all is about Pride and Ego when come to people running this country.. malay said maruah, Chinese said must have face.. but our pocket got big hole, every month pocket kosong, when some people left pocket in, right pocket out, my salary already kosong before come to my pocket, income tax took it, house loan took it, car loan took it, credit card took it...........
2014-05-27 17:47
old man try to act young. Pls admit you are already senior citizen and you should show good example to your grand children (if you have any).
2014-05-27 20:12
What happened to MH370 was indeed very unfortunate and tragic.PM Najib stated that it ended its journey in the Indian Ocean. Tun Dr Mahathir has a different opinion. Where is MH 370? Where are the passengers? We do not really know and Only god knows what had happened. Our fervent prayers go to all the unfortunates onboard.
Now let us focus onto you as a car consumer living in Malaysia. As a car consumer living in Malaysia, have you compared the prices of Proton cars and other car brands in the Malaysian market? Have you researched and obtained price info of the other car makes(Proton equivalent or near equivalent) in USA, Japan and Germany?
Do u notice any difference in quality cum technical specs between Protons for Malaysia market versus Proton for overseas market? What is the price to consumer of Proton in Malaysia and in overseas market?
Do u see any difference between the car price of Proton, other brands in overseas markets? Do u also see any price difference between Proton and the other competitors in the Malaysian market? Is there any difference in technical car specs in Malaysia compared to the overseas markets such as USA, Japan and Germany?
Having done all that and taking a position of an average wage earner and a car consumer in Malaysia":
Is the average Malaysian car consumer earning an average income which is much lower than the average incomes in USA, Germany and Japan financially better off with Proton or financially better off without Proton?
2014-05-27 21:09
Dear Mr Khoon,
I can't agree more with your opinion and your diagnosis and prognosis of TDM and his perennial antics to be forced appointed as Proton Chairman!But what I am sure to happen in weeks or perhaps months to come is that...our `beloved' ex PM will find ways and means to force potential car buyers espcially the middle class to buy Proton...he will find ways and means to circumvent whatever trade agreements we are party to i.e. AFTA and force the prices of foreign marques to go up one way or the other...thus forcing locals [ those low and middle income earners] to revert back to buying the so called national cars..My 2 cents worth of advice to those planning to buy a foreign model soon...rush to your nearest dealer and sign in the dotted line..
2014-05-27 21:23
Mr Koon,
I 100% agreed to your very detailed article above. Very pertinent remarks,sensible,apprehensive,very appropriate. Constructive and thought provoking to intellectuals who is forward looking.
This article is tactful and served to widen the narrow visions of most malaysian who had been economic/financial victims for more than 20 years due to the ego of an ex-Pm. Keep it up and perhaps translation into BM and chinese language will see the message reach a wide readership.
2014-05-27 21:48
I believe Dyana Sofya is a good example of young Malay generations who no longer tolerate with this kind of governments old fashion- own benefit policies.
2014-05-28 15:01
The young generation of Malaysians are much more open minded and liberal compared to their parents. The move towards liberalism is an irreversible trend and surely it will gain more traction with time.
2014-05-28 15:07
!st that doctor is old d, 2nd he is outdated , 3rd what the heck he knows of car ? engineering? design? 4th he belongs to hospital / clinic NOT automobile company!!! gv me back my tax monies !! don't spend my tax monies on his salary !!!! nia mar....
2014-05-28 22:23
Every Malaysian car consumer will definitely want to stretch their disposable income $$$$$$$. Anything that increases the cost of purchase and deprive them of their choice of selection is certainly not welcome by everyone concerned
Why should one man decide what car and what price an average Malaysian car consumer should pay for? Did all Malaysians give him the exclusive right to decide for ALL?
2014-05-28 23:07
Proton and Kia started manufacturing cars at the same time....Kia now is the world brand.......proton....kampung brand..build low quality cars..
2014-05-28 23:08
it is very easy to sell more proton cars......enforce yearly mandatory inspection of cars of more than 10 years.....DRB is lobying all out for goverment to enforce this.....rakyat all out objecting ...may be new chairman can help proton on this matter........
2014-05-28 23:20
Mr Koon, Yes it is bad taste to compare to MH370. And thumbs up to you when you promptly apologized. It takes courage to apologies.
Do you or anyone knows about this privatization of Proton in details especially the loan guarantee part. Is the government meaning we tax payers, guarantee the loan Proton owes to banks and what not. And, who fund the future expansion ? $ from EPF ??
It may be possible to turn Proton into profit but not from selling cars. The lands in Shah Alam is worth billion I suppose. Just move the whole factory /operation to Proton city in the North ( which is under utilized, I guessed), then the land could bring in a lot $$$$ for proton. But why let Proton made the $$, the land could be sold to............... Just kidding
2014-05-29 13:31
Lastly , dr m shld come up with concrete plan on how he intend to turn around proton .. apart from getting loans from the govment , from the rakyat/taxpayers
Nowadays rakyat more smarter than those days when he rule with cronisym & almost 90% majority in parliament
Now BN has slim majority and any hanky panky can result in even lower majority
2014-06-06 21:15
Feels like dr M is the PM again. He seem to be the one to issue critism or praise a leader should. like the critism levied on Jais and MH370 Boeing .......when Najib was only quiet
2014-06-06 21:20
After almost 30 years of existence and protection, What has PROTON got to show to all Malaysians about its real achievement in Malaysia and overseas market?
PROTON had achieved nothing to date that merits commendation and it still want more protection to survive??
Does Dr Mahathir still think that Malaysians can still be fooled by more protection for PROTON is good for you, the Malaysian consumer??
2014-06-08 21:01
Proton is his baby ... if bankrupt ... he loose face big time , so what do you think he will do ?!!!
2014-12-08 21:50
I don't care who their leader is. All I know is I'll will now start buying car parts from http://ikutkiri.com since I found them last week. Other places keep trying to raise their prices
2015-02-12 18:34
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Why Malaysian buy Proton car?Because the price is cheaper than others.We,Malaysian are force to drive this useless car because we can't effort the expensive one.Proton had been bankrupt long time ago if the gov did not bail out proton.Dr M's appointment makes no difference.
2014-05-26 21:40