Malaysia is not losing anything with the sale of a 49.9% equity in Proton to a strategic partner 

LET’S be frank – it isn’t wrong to suggest that most Malaysians have long grown tired of using taxpayers’ money to keep the national car project afloat.

In other businesses, when a company is bleeding, immediate steps are taken to cut losses – either shut it down or sell it to another entity. In some cases, even firms which are making money are sold if the offer price is just too good to resist.

In the case of Proton Holdings Bhd, however, money has been continuously pumped in to keep the company alive, even when it was languishing in the intensive care unit.

We were just too afraid of offending Tun Dr Mahathir Mohamad because he is regarded as the brain behind the national car. But we need to face the truth. As much as we tried to keep Proton alive in the name of national pride, we all knew, deep in our heart of hearts, that Proton had become a national liability.

Since DRB-Hicom Bhd acquired Proton Holdings Bhd for RM1.29bil (or RM5.50 a share), it hurt the former’s earnings badly.

In the three years following the acquisition, Proton incurred RM1.93bil in after-tax losses for DRB-Hicom (as at March 31, 2015) as revenue fell on weakening sales volume.

The reality is that DRB-Hicom would have performed well if not for Proton. In the past four years, DRB-Hicom reportedly managed to almost double its Honda sales – from around 46,000 units a year to over 87,000 in 2015.

During that period, Proton’s sales declined about 33% to 102,175 units as at December 2015, according to a report.

Last week, following the announcement of the deal with Zhejiang Geely Holding Group, the share prices of DRB-Hicom shot up.

The DRB-Hicom shares rose to a high of RM1.86 early Thursday, when it resumed trading following the announcement of the deal.

The fact is this: Malaysia is just too small a market for a national car, and it doesn’t help that many Malaysians find other car brands to be more attractive than Proton.

In short, Proton’s acquisition was a huge burden on DRB-Hicom and its balance sheet. DRB-Hicom’s gross gearing – or borrowings – shot up to 0.91 times from only 0.26 times before the acquisition of Proton.

Last week, the former prime minister lamented the sale of Proton Holdings to foreigners and with some cynicism, remarking that the sale was just the beginning of having Malaysian assets, including land, sold off to foreigners.

“They say Proton is my brainchild. Now the child of my brain has been sold. Yes. I am sad. I can cry. But the deed is done. Proton can no longer be national. No national car now,” he was quoted as saying.

“Proton, the child of my brain, has been sold. It is probably the beginning of the great sell-out. The process is inexorable. No other way can we earn the billions to pay our debts. The only way is to sell our assets. And eventually, we will lose our country, a great country no doubt, but owned by others.”

Dr Mahathir must accept the reality that Malaysia is too small a market to support Proton’s growth. He cannot deny the fact that China is a huge market, selling 28 million cars a year, and with Geely’s stake in Proton, that door is now open to Proton.

The former premier is understandably sentimental about Proton, as it started with much optimism and hope. Every Malaysian wanted it to succeed, and most of us have, at some point in our lives, owned a Proton car.

But we need to look at the hard facts. Perusahaan Otomobil Nasional Bhd (Proton) was incorporated on May 7, 1983, to manufacture, assemble, and sell motor vehicles and related auto products. It produced Malaysia’s first commercial car, the Proton Saga, in July 1985.

Soon after its launch, Proton commanded the lion’s share of the local automotive market, but in the last 15 years, the market share has dropped. Last year, it fell to 12.5% of the local market share from 15.3% in 2015. Its total sales fell 29% year-on-year to 72,300 units due to deteriorating market conditions, said Hong Leong Investment Bank Research in a recent report.

We should be crying over this sad state of affairs and rejoicing that the financial burden of DRB-Hicom has now become lighter after Geely, which owns the Sweden-based Volvo Cars, agreed to buy 49.9% of Proton and a 51% stake in Lotus Cars from DRB-Hicom Bhd.

It doesn’t take a genius to guess that if the Chinese had their way, they would just take Lotus, as it is a premium brand name, surely desiring the technology from this James Bond car. But the deal was crafted in such a way that, if the Chinese wanted Lotus, it would need to take 49.9% of Proton.

It’s a clever trade off because DRB-Hicom is still the majority shareholder, and the national car remains in Malaysian hands.

More importantly, the 60,000 members of Proton’s staff and its 240,000 vendors, distributors, and suppliers, still get to keep their jobs. Surely the negotiators must be praised for pulling this off – it was not easy to do.

Ironically, the people of Sweden didn’t turn the Volvo deal into a political issue when Geely acquired 100% of the iconic car, which is a global name and, most certainly, the pride of Sweden.

The 240,000 vendors now, in fact, have a chance to provide their expertise to Volvo as well as the London Taxi Company, which produces the city’s famous black cabs, through its list of Global Sourcing Purchasing System.

That means that if Volvo in Sweden wishes to source for components producers, our Malaysian vendors will have a chance to be selected to manufacture automotive components for Volvo.

London Taxi has been acquired by the Chinese company, which recently opened a new factory in Coventry, Britain, investing some £300mil (RM1.67bil).

Were the British complaining that the black cab, a national symbol, has been taken over by the Chinese? Not at all. In fact, unless one follows the business transaction in the financial pages of the media, the average British bloke would have no idea at all.

It is really not unusual to see big foreign companies changing owners. The iconic Harrods in London is Egyptian-owned, don’t forget.

As a prominent retired official told me, the same argument can be applied to the Proton sale.

He said Proton would now grow bigger, produce more new models, sell in the Asean market, and employ more workers at its underutilised facility in Tanjung Malim, Perak.

The Jaguar, a British brand, has been owned by India’s Tata Motors since 2008. Vauxhall, one of the oldest British carmakers, was sold to the French.

Proton has the capacity to produce 400,000 vehicles but is currently being utilised at below 20%. Presently, its sales hovers around 6,000 units monthly, which is a pathetic figure.

To suggest that Proton has been sold off to a foreigner is preposterous. It is normal for any business entity to be on a 51:49% ratio.

Malaysia has lost nothing with the sale of a 49.9% equity to a strategic partner. It would be worse if we lose our sense of rationality and practicality in the name of national pride. Let’s get real.

The recent ruckus at the TN50 dialogue with the PM in attendance was shameful, no matter how you choose to look at it.

COMEDIAN-ACTOR Sulaiman Yassin needs to attend an anger management course.

He is a has-been but has now regained fame or more precisely, notoriety, for slapping movie producer David Teo at a public dialogue, attended by Prime Minister Datuk Seri Najib Tun Razak.

This is not the first time he has assaulted someone, and if he doesn’t do something about his fiery temper, he will probably end up being charged with inflicting violence against someone one day.

As it is now, he is being investigated by the police for first claiming that his hand missed its target and the very next day conflicting himself, saying he had no regrets slapping Teo.

Teo, who said he had forgiven Sulaiman for his outrageous behaviour, will also be called up by the police, which has rightly filed a report on the case.

Interestingly, there are some who are cheering and back-patting Sulaiman for his much criticised action, which took place during the TN50 dialogue with the Prime Minister. It is hard to comprehend, even bizarre, for anyone with a rational mind to congratulate Sulaiman for his behaviour. It only encourages this feeble mind.

In 2003, he represented a football team comprising artistes in a football match against the staff of TV3 and reportedly attacked a player (or players), prompting the then chairman of Perodua Celebrity Cup, Norman Abdul Halim, to express regret at his rowdy behaviour.

According to a report in Utusan Online, the member of the popular KRU group described the incident involving Sulaiman as “shameful” as it took place in the open, being a football match, and was witnessed by the public.

Fast forward to 2017. The same man, with a tainted record, reportedly complained about Teo’s purported “rude and disrespectful behaviour.”

For most Malaysians, committing such a ruckus in front of the Prime Minister himself went beyond being rude – and we are talking about Sulaiman.

It is arguably a criminal offence (and perhaps, even a lapse in security) as this man could be seen walking slowly but purposefully towards Teo.

Artistes who know Sulaiman, aka Mat Over, say he can be easily provoked and has problems exercising self-control.

What is clear is this – he needs help and making him a celebrity of some sort for his purported bravado isn’t going to help him at all.

Mat Over is certainly not the ideal model for youth, and it is incredible that the Terengganu state government chose him to speak. This was decided even before the slapping incident, and it surely needs to be reviewed now.

Teo, too, needs to take a hard look at himself. Not many may want to tell him but he seriously needs to examine his less-than-favourable mannerism, which many found to be too loud, offensive, aggressive and abrasive. This, perhaps, is regarded as uncouth and rude by many. He may not even know it.

Last year, Teo put his foot in his mouth when he advised artistes to be careful with their spending, saying they should not end up like paupers, pointing out that the late legendary Tan Sri P. Ramlee had to “live at the side walk of Bukit Bintang and his son ended up working at DBKL”.

His intentions may have been good but the manner of conveying his message was done distastefully and Teo had to apologise over the matter as it was seen as an insult and had demeaned the family of the great artiste actor and his legion of fans. Seriously, he needs a script. Off-the-cuff remarks don’t become him.

No one can deny his vast contribution to Malay movies. Although they may not be award-winning, they provided work for hundreds, if not thousands, of local artistes. His critics call his movies “trashy” but they do not deny that they were profitable.

There are many Malaysians who actually like his movies. He remains one of the most prolific and profitable directors around.

To be fair to Teo, he has done more for the welfare and career of Malay artistes than some self-appointed chest thumping communal champions, who are demanding a public apology from him.

The producer is also known to be a generous person who has provided cars and even umrah trips to artistes. I’m sure he even offers personal loans to some artistes, many of whom have no sense of personal budget.

But Teo needs to improve his command of Bahasa Malaysia. Despite having produced nearly 80 Malay movies, he has not been able to speak the language smoothly, in a natural way. The result is that at times, he may end up sounding uncouth.

At last week’s dialogue, the incident might not have been so ugly if he had conducted himself better. He was given a minute to ask his question but he chose to express his frustration at moderator Datuk Rosyam Nor instead.

We are not clear what Rosyam actually said as it could not be heard in the video that went viral. One thing’s for sure, is that Teo needs to be more discerning in what he says publicly as he is a known figure.

Rosyam also came under attack from netizens for purportedly berating Teo for his manner, and perhaps unwittingly led to Sulaiman walking over to “teach David Teo a lesson,” in the words of Sulaiman.

Those who criticised Rosyam included comedian-actor Afdlin Shauki, who claimed that the former opened the floodgates in the first place.

It is quite a relief that common sense prevailed finally. It ended happily, like how those in the movie industry often say. Both rightly apologised to Najib as the host of the meeting which took place at his residence.

It was a shameful incident, no matter how we choose to look at it. A dialogue, as the name suggests, is a conversation between people. It is an exchange of ideas and views, and a meeting of minds. Surely there will be conflicting and sometimes, dissenting views.

But slapping someone or delivering blows at someone we don’t particularly like, offensive as the person may be, isn’t part of a civil discourse. This is not a wrestling or boxing match, please.

It is important that participants learn or keep up a certain decorum and manners when posing questions to someone, whom we have invited to a function to take questions. In the case of the TN50 event, it was the Prime Minister himself.

The artistes were given a rare opportunity to hear the PM, and to ask questions, but unfortunately, some chose to waste the opportunity.

The lesson learnt is for moderators to set certain rules and conditions at future TN50 dialogues, which have actually gone on very well before this. The moderators themselves need to know their roles better.

But these dialogues should be viewed positively. They must be held regularly, and not just because the general election is near.

Such town hall-style meetings allow the stakeholders of various industries to let our leaders know what’s on the mind of the people. It will also allow the leaders to explain the numerous issues. This is what a thriving democracy should be about.

Moderation is key to good sense and judgment. It is always easy to make angry and emotional responses but it doesn’t make Malaysians, especially the misguided ones, any better. 

ON the day when videos of an altercation outside a mosque in Austin Perdana, Johor Baru, went viral, The Star Online quickly reported the unfortunate incident, in a factual manner.

My colleague, a senior editor and a Malay, called me up and asked if it was wise to publish the news online, expressing concern that it might lead to racial disturbances.

I assured him nothing of that sort would occur as I believe most Malaysians are peaceful people and they would not be easily provoked. One thing’s for sure – they will not take to the streets and cause mayhem.

In any case, this is the age of social media and the days of ignoring an incident like this will not work as the video had gone viral.

In this incident, a ruckus broke out after a man in a white car was said to have honked repeatedly outside a mosque during prayer time because his car was blocked by vehicles parked on both sides of the road.

After prayers, a group of men emerged from the mosque to confront the driver. In videos captured by bystanders, some men are seen kicking and hitting the car.

The panicked driver reverses the car in an attempt to escape the crowd, almost hitting a man standing near the car. The men shouted at the driver and then started to bash the rear windshield with a helmet and orange road cone, breaking it.

My Malay colleague – a friend I have known for more than three decades – is an old school journalist and who, like most of us in the less sunny side of our 50s, lived through the May 13 racial riots, although we were in primary school then.

To be honest, this tragedy has not haunted us but it’s a baggage to us journalists, nonetheless. Two-thirds of Malaysians didn’t live through it, which is a good thing really.

The occasional May 13 threat by racist groups no longer work. No one pays any attention to them although their remarks are irritating and downright offensive.

Most of us are more upset that their statements, often bordering on sedition, escaped the consequences of the law. Even more upsetting is perhaps that national leaders are not rebuking them and this gives the impression they are endorsed.

But like my colleague, I, too, take a very cautious stand when it comes to matters of race and religion because they need to be handled with care and sensitivity.

Social media like Facebook and YouTube, and the emergence of news portals, has made it difficult for better approaches in dealing with such issues.

Some younger Malaysians blindly, if not stupidly, post comments on their Facebook page without much thought to the feelings of others.

They, sometimes, assume that their views are just read in private, forgetting that they have in fact opened their accounts to the public in their eagerness to gain followers.

So, after the recent altercation, we read of accusations and offensive remarks being hurled against Muslims, in a sweeping manner.

As much as the driver’s girlfriend was angry and emotional as he was assaulted, she ought to have restrained from making it worse. As the saying goes, two wrongs don’t make a right.

Likewise, there were some defensive Muslims who reacted in an equally outrageous manner, accusing those who sent out the video as wishing “to tarnish the image of Muslims” and of course, they too, called the Chinese names, also in a sweeping manner.

To be fair, many other Muslims expressed bewilderment at how their fellow Muslims could go berserk and attacked others, when they should be calm and reflective after having just spent time with God. Surely, pious Muslims would not resort to violence outside a place of worship.

And non-Muslims would know by now that on a Friday, it is wiser to avoid the mosque areas because of the traffic congestion. In the case of the non-Muslim driver, he may have forgotten. But this was a very unfortunate incident.

He had simply acted unwisely as continued honking is highly provocative in any place and often leads to anger from others.

He could have waited, or asked for help via the mosque.

Muslim worshippers have themselves told me how they had faced difficulties in leaving the mosque area after prayers because of vehicles double parking next to theirs.

And some inconsiderate double parkers even go for meals after prayers, leaving the others fuming.

This happens not just in areas where places of worship are located. Most of us have even seen how some car owners end up stranded when the pasar malam opens.

Some Christian devotees face the same parking problem. Places of worship, especially the old ones, were built without providing parking lots.

If parking summonses were to be issued outside these places of worship, it would help if the police and council enforcement officers carry them out fairly.

The minority must not be given the perception that the majority can get away when they flout the laws. The rules apply to all and no one, regardless of their race and religion, is spared.

That will surely instil a sense of fairness and justice. These are common values upheld by all faiths and as Malaysians, we believe in fair play.

We must give credit to the police for their professionalism. Immediately after the incident, police arrested four men, aged between 21 and 55.

The police said the case is being investigated for rioting under Section 147 of the Penal Code. It has been reported that the police are arresting more people.

The Deputy Minister in the Prime Minister’s Department, Datuk Dr Asyraf Wajdi Dusuki, correctly called for calm, noting that “the people must remain committed to their principles and they should not be easily threatened and swayed by incidents that do not reflect the majority”.

Deputy Home Minister Datuk Nur Jazlan Mohamed also called for calm, saying that a little tolerance would have gone a long way.

The driver should not have honked although his way was blocked by vehicles, he said, while the congregation should not have acted violently.

“The men who attacked the driver could have talked to the driver instead of attacking him,” he added.

I have followed some of the comments posted on a popular news portal and I wonder how these remarks can help in any way, especially in dealing with race relations.

It is always easy to make angry and emotional responses, in its ugly negative form, but it doesn’t make Malaysians, especially the misguided racist ones, any better.

At the same time, our politicians must be mindful that their statements and remarks have a major impact on Malaysians.

The play of racial cards, especially those trumpeting communal rights and making scapegoats of the minority races, will harm the social and political fabric of this country.

It is bad enough that Malaysians have to deal with race concerns but now, we have to deal with those wanting to tear up the Federal Constitution and Rukunegara with demands, in the name of religion, which divides the country further.

Any form of challenge to these religious politicians is turned around and deemed as an affront to Islam, to shut up critics.

I am an optimist. As much as we often get demoralised, and even angry, by certain remarks and actions, I believe most Malaysians are upright, restraint, considerate and moderate.

We shouldn’t let politicians set the agenda. More advocates of moderation must speak up.

Most of us believe in Malaysia and Malaysians.

THE announcement by an unknown, newly-set up Malay group challenging the citizenship of 1.75 million Malaysians granted between 1957 and 1970 failed to get any traction and rightly so too, as most found it ridiculous.

Most media organisations ignored this racist group, with one writer describing it as being part of a lunatic fringe but it was given a breath of life by online portals and before long, it was discussed on social media.

Frankly, they should not be left unchallenged because what the obscure Barisan Bertindak Melayu Islam (Bertindak) has proposed is downright seditious – the tone of its proposal smacks of racism. Surely, they must be called up by the authorities, including the police.

Obviously, it needs to be reminded that under the definition of sedition and seditious tendency in our legislation, anything uttered which upsets a group of people along racial or religious lines is seditious. The term may be broad but that’s how it goes, people.

Mohd Khairul Azam Abdul Aziz, the secretariat head for Bertindak, reportedly alleged that granting the said status had violated stipulated terms under the Federal Constitution, warranting a review.

And what’s their logic (or the lack of it) here? A flimsy technical argument that “Schedule 1 of the Federal Constitution stipulates the taking of an oath of loyalty before citizenship is granted to a person here”.

He alleged that this procedure, however, was bypassed between 1957 and 1970, enabling 1.75 million people being eligible for Malaysian citizenship during that period.

Oh, come on, please. This body can do better than that, surely? Mohd Khairul Azam further claimed that as this was not done, “we will check whether this process is in violation of the Federal Constitution, and we want to review the granting of citizenship to non-Malays, which were given at that time”.

“This is a legal issue which needs to be brought to court and we want the court to decide,” he reportedly added.

Let’s be honest and upfront here. We know this is complete nonsense. This is undoubtedly a frivolous case, if the group actually manages to bring this matter to court.

What this group is doing is subtly questioning the loyalty of the Chinese and Indians of this country, the people who have contributed enormously to the building of this nation.

The aim is to create uneasiness among Malaysians. It cannot be denied that the suggestion was an insensitive, highly disturbing and provocative one.

Together with their Malay brethren, the Chinese, Indians and those in the minority groups have made Malaysia prosper. We are all Malaysians. Yes, our forefathers came from China and India, and others from Indonesia and the Philippines.

It’s tiring to argue or even to remind some feeble-minded racists of these historical facts as they are completely ignorant or blind to this as a result of their bigotry and racist nature.

Some of them choose to close their eyes to reality, preferring to stoke racial flames to fulfil their ugly agenda at the expense of race relations and the nation’s future.

And all this angry response was over a foreigner – none other than controversial Indian preacher Dr Zakir Naik, who was given a permanent residence status by the Government.

And in an incredible and almost childish response, equally controversial Datuk Ibrahim Ali, who heads the recalcitrant Perkasa and who was present at the press conference, reportedly said: “If you disturb us, we disturb you la,” seemingly as a warning to the non-Malays.

It is amazing how groups and individuals, who thrive on racism in the name of defending their race and religion, could set aside so much of their time and resources on such unproductive activities. They seem to be well funded and given the background of these doltish personalities, surely they can’t have been driven by commitment to some lofty principles.

In an article on the same subject, retired Malaysian diplomat Datuk Dennis Ignatius eloquently wrote that “this is a country where racism and religious intolerance has run amok, where morally and intellectually bankrupt racist and extremist groups masquerade as patriots and righteous men and get away with it.

“It’s easy to dismiss them as part of the lunatic fringe but sadly, they are the cheer-leaders of a deeper malaise that stains our nation’s honour – the acceptance, adulation even, of racism and discrimination as an organising principle.”

He lamented that 60 years after independence, and more than 100 years after the last significant wave of migrants came to Malaysia from China and India, “there are still groups that are offended by their presence, unwilling to accept the ethnic, religious and cultural diversity that has defined our nation from its genesis”.

“They think nothing of welcoming newer migrants from Indonesia, the Middle East, Pakistan, Kazakhstan and Bangladesh by the thousands, make them “sons of the soil” and even vote them into high office but cannot find it in their heart to accept the dwindling Malaysian-born minorities in their midst.

“They wholeheartedly defend the granting of PR status to foreign extremists but harden their hearts to those who were born here and have lived here for as long as many of them have.”

Irritated as we may be with such groups, I believe most Malaysians still believe in Malaysia. It’s simple. This is our country. Our ancestors may have come from different parts of Asia but we don’t belong there. We are simply not like the nationals of China, India or Indonesia.

The continuous attempts to make non-Malays the bogeyman, giving the illusion that the majority Malays risk losing their grip on political power is pure hallucination and quite frankly, merely a scare tactic as the general election approaches.

Most Malaysians including the Malays can see that the Chinese and Indian population is dwindling – and fast.

In 2014, the Department of Statistics reported that the ethnic Indian population as at the end of Sept 30, 2014, stood at 1.98 million against the over two million registered foreign workers. There are no Indian majority state or parliamentary seats in Malaysia.

Another report stated that based on current trend, the population of migrant workers may overtake the number of ethnic Chinese.

In 2034, the migrant population would have overtaken the number of Chinese by 7.5 million to 7.4 million. According to the reported projection, the migrant population will make up 24.2% of Malaysia’s population by 2040.

These figures suggest that the Chinese population, the second largest ethnic group after the Malays in Malaysia, will drop to third place after the bumiputra and foreign migrant workers.

The Asian Strategy and Leadership Institute’s (Asli) reported prediction is that the number of ethnic Chinese would drop to about 19.6% of the Malaysian population by 2030 if their emigration trend and low birth rates continue.

The Department of Statistics, however, projected that the Chinese proportion would drop to 20% of the population by 2040 from 24.5% in 2010. The ethnic Indian proportion is expected to reduce by 0.9 percentage points to 6.4% of the population by 2040.

The Bumiputra population, however, is expected to grow by 4.8 percentage points to 72.1% by 2040 from 67.3% in 2010.

The likes of Ibrahim and Bertindak shouldn’t rejoice at such a scenario, if they are rational.

Analyst Khoo Kay Peng has rightly said that the trend of ethnic Chinese emigration from Malaysia will result in a smaller private sector, less tax monies for the Government and a reduced professional workforce.

But there is still reason to be optimistic. The fact that Bertindak’s proposal went nowhere says a lot but as Ignatius noted, it would be appropriate if the national leaders speak up in defence of the minorities when such ugly incidents surfaced. After all, many of these Malay leaders say they represent all Malaysians and not just Malays.

But the stand taken by the Malay ground was not the only regrettable episode. A video went viral, purportedly showing a group of supposedly Indian rights activists inciting a crowd and making clearly racist slurs.

If the translation is correct, inflammatory overtones were clearly made and they, too, deserve to be hauled in by the authorities.

Racial overtones by any Malaysian, regardless of their race and religion, must not be allowed, condoned or allowed to go unchallenged as it would set a dangerous trend.

As we celebrate our National Day in August, we must not allow issues of pre-independence days to dominate national discourse.

These are settled issues and not to be rekindled for political expediency. Malaysia has no place for racists.

Malaysia was founded and built by founding fathers who were all moderate forces and they believe in power sharing because Malaysia remains multi-racial, multi-ethnic and multi-religious. Let’s keep it that way. This is our country, full stop!