By Chan Quan Min
Proton has made a request for a RM1.7 billion grant from the Economic Council (EC), a unit under the Prime Minister’s Department chaired by the Prime Minister Najib Abdul Razak, The Edge Malaysia reported.
The financial weekly said “one of Proton’s top officials” approached the EC last week to ask for the hefty research & development grant.
This would be the second time this year Proton has asked for a grant from the government. Earlier this year, the carmaker made a request for funding from the Ministry of International Trade and Industry (MITI) to the tune of RM3 billion but was turned down.
“It would seem that it is now putting forward its request to a higher authority,” The Edge noted.
Proton is the recipient of a RM200 million a year in grants for its research & development programme.
The request for funding from the EC is the first major move by the national carmaker since the appointment of former prime minister Dr Mahathir Mohamad as chairman in late May.
Dr Mahathir Mohamad
Mahathir was previously advisor to Proton. As the new chairman he has vowed to shed the brand’s “cheap car” image.
Proton was privatised in 2012 to DRB-Hicom, an automotive company majority-owned by billionaire Syed Mokhtar Albukhary.
CIMB Research was sceptical if RM1.7 billion in cash would make any difference to its declining fortunes.
“Assuming Proton gets the grant, it will have no impact on its earnings, although its balance sheet will be significantly boosted by the additional cash,” the research house said in a report this morning.
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