Proton gets RM1.1b R&D reimbursement grant

File pic of directors Proton Holdings Bhd Datuk Radzaif Mohammed, Shahrul Farez Hassan,Datuk Radzaif Mohammed;DRB-Hicom group MD Datuk Seri Syed Faisal Albar; Zhejiang Geely Holding Group executive vice president and CFO Daniel Donghui Li and chief executive of Proton Otomobil Nasional sdn Berhad (PONB) Dr Li Chunrong at DRB-Hicom Bhd and Zhejiang Geely joint media conference on Sept 29.

KUALA LUMPUR: Proton Holdings Bhd's manufacturing unit has received its research and development (R&D) reimbursement grant of RM1.1bil on Friday, which is the latest positive news for the loss-making national car maker.

DRB-Hicom said Perusahaan Otomobil Nasional Sdn Bhd (PONSB) had received the reimbursement grant for the R&D activities in line with the government's policies.

“PONSB intends to fully settle its syndicated loan facility and thereafter help Proton to part settle its shareholders’ advance due to DRB-Hicom from the remaining funds of the R&D reimbursement grant of RM1.1bil,” it said.

DRB-Hicom had disposed of a 49.9% stake in Proton for RM460.3mil to China's Zhejiang Geely Holding Group (Geely) under its move to rope in a strategic foreign partner to turn around the loss-making national car company.  After the sale, DRB-Hicom now holds 50.1% of Proton.

Last Friday, Proton and Geely announced several appointments to the manufacturing arm and Proton.

Dr Li Chunrong, with 30 years experience in the automotive industry, was the first non-Malaysian to head the manufacturing arm.

 As the newly appointed chief executive officer (CEO) of PONSB, his target is to help Proton regain its glory days in five years.