Najib: Proton facing RM1bil losses if not for Geely deal

FRIDAY, MAY 19 KUALA LUMPUR- Deputy Prime Minister Dr Ahmad Zahid Hamidi delivers speech at university programme with Deputy Prime Minister at Tuanku Chancellor Hall, Universiti Teknologi Mara (UiTM) Shah Alam at 0945 (0145 GMT) KUALA LUMPUR- Release of Malaysia's 1st Quarter 2017 GDP at 1200 (0400 GMT) KUALA LUMPUR- Prime Minister Najib Razak(pic) launches the "UMNO Bantu Rakyat" programme (Malaysia UMNO Welfare Bureau) at Sekolah Kebangsaan Taman Kosas, Ampang at 2030 (1230 GMT)

SEREMBAN: Proton Holdings would have registered losses of up to RM1bil this year if the Government had blocked its part sale to Chinese car maker Zheijiang Geely Holdings.  

Prime Minister Datuk Seri Najib Razak said the Government could no longer use the rakyat's money to help Proton as it had been doing previously due to the continued losses registered by Proton.  

"Last year, Proton lost RM500mil and the Government was forced to give it a RM1.5bil soft loan.  

"And this year, they asked for another RM1.1bil for R&D.  

"How long more can we use the rakyat's money to help the company?" he asked in his speech before breaking fast with the rakyat at the Taman Paroi Jaya mosque here on Friday.  

Najib said a car manufacturer needs to produce a million vehicles to remain profitable.

But Proton only manufactured an average 6,000 units a month or 72,000 a year.

"What is the point of having 100% ownership in a company but we continue to register losses amounting to hundreds of millions of ringgit?  

"Good business sense dictates that it is better for anyone to reduce his ownership in a company if he can make some profits," he said.  

Najib said the people should not be emotional when discussing the matter and not relate it with the country's dignity.  

"Which is better - a 100% ownership and continued losses or a 51% holding and some profit?" he asked.

Also present were his wife Datin Seri Rosmah Mansor and Mentri Besar Datuk Seri Mohamad Hasan.  

At the event, Najib launched the eighth phase of a programme to put up street lights in traditional villages in the state.  

Under the project, 4,337 street lights will be put up in 433 kampung in Negri Sembilan at a cost of RM3.4mil.  

The Federal Government has set aside RM100mil for the eighth phase of the project nationwide.  

In total, 111,833 street lights will be put up in kampung throughout the country. Of these, 6,333 are LEDs (light emitting diodes).  

During the first seven phases, 300,000 street lights had been erected in villages nationwide at a cost of RM150mil.  

Of these, 18,300 units were put up in Negri Sembilan.