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Wednesday, April 06, 2016

KHAZANAH TO BE BLAMED FOR PROTON'S DOWNFALL Not Dr.M

Armin Baniaz Photo SOURCE: MALAYSIANGAZETTE
Article Sourced from/by: Armin Baniaz Pahamin - his blog http://arminbaniaz.com/

"Dato' Abdul Rahman Dahlan said in an article posted by the Star, (an extract of which, was posted at the bottom), that Dr M must answer for Proton's colossal failure; I feel the need to clarify.


1. Proton was the no 1 car maker when Tun Mahathir was the Prime Minister. 
2. Proton went downhill under Tun Abdullah Badawi premiership whom was also the Minister of Finance, the holding company of Khazanah Nasional whom was at that time, the biggest shareholder of Proton Holdings Berhad. Dato Mohammed Azlan Hashim was appointed by Khazanah Nasional as Proton Chairman and was tasked to remove Tengku Mahaleel as Proton Managing Director. 
3. Dato Mohammed Azlan Hashim succeeded in removing Tengku Mahaleel when his predecessor, also a Khazanah Nasional appointee Dato Abu Hasan Kendut had failed. When Tengku Mahaleel was removed, he left Proton with RM4b in cash reserves.
3a (added By Jefferson Lim), Proton then Acquired MV.Augusta for 70 million EUROS in 2004 but Khazanah Sold it for 1 EURO a year later.  Read more here: http://malaysiavoices.blogspot.my/2008/07/mv-agusta-and-proton-story.html
4. Proton lost to Perodua as the number 1 car maker under Dato Mohammed Azlan Hashim when Khazanah Nasional was the biggest shareholder and in control of Proton.
5. Khazanah Nasional, via Dato Mohammed Azlan Hashim had reversed Tengku Mahaleel's decision to terminate EON as Proton distributor when EON refused to contribute to the R&D funds requested by Proton after the government stopped giving R&D grants for proton development. 
6. This resulted in a sales network with more than 400 dealers representation in Malaysia. This was the most destructive decision that weakens the once a strong dealership network and the start of a series of catastrophe.

7. Proton's downfall started when Khazanah Nasional was the owner of Proton and when the government under Tun Abdullah Badawi had no clear vision and roadmap for the national car. 
8. DRB-Hicom was asked to take over Proton for Barisan Nasional to win the previous election when one of the opposition's strongest manifesto was to shut down Proton! DRB-Hicom then, de-listed Proton and capitalized on Proton's asset.  
9. Proton's real problem began when Khazanah Nasional wanted to gain control of Proton by sacking the performing and profitable Proton Managing Director Tengku Mahaleel. Proton has been repeatedly raped since then.   
10. Proton went into financial problem when all its cash reserves and assets were exhausted during those period under Khazanah Nasional. Tun Mahathir recently came back as Proton Executive Chairman to save whatever that is left in Proton. If there is anyone that should be blame for Proton's failure, then it should be Khazanah Nasional and not Tun M."

* Read my earlier piece: Should the Government Bail out Proton.

The Star Online: link: http://www.thestar.com.my/news/nation/2016/04/02/rahman-dahlan-dr-mahathir-must-answer-for-proton-colossal-losses/

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