TANJONG MALIM: The strategic cooperation between Proton Holdings Bhd and Geely Holding Group continues to strengthen the position of the national car manufacturer in the automotive industry through technology transfer, intellectual property (IP) development, increased local content and a strengthened local vendor ecosystem.
The Minister of Investment, Trade and Industry, Datuk Seri Johari Abdul Ghani, said the collaboration demonstrated that quality foreign investment can enhance the competitiveness of local companies when both parties share technology and expertise, rather than merely turning Malaysia into a market for selling products.
He said the approach can be seen through the collaboration between Proton and Geely, under which both companies have jointly developed technology and IP, thereby strengthening Proton's ability to compete in the increasingly competitive automotive industry.
"When Geely comes to our country, it doesn't just want to sell cars, but it wants to coexist with the ecosystem we have and build this ecosystem together with our entrepreneurs.
"Our manufacturing component players can also benefit together by creating job opportunities, generating profits and ensuring the government benefits as well," he told reporters after officiating the line-off ceremony for the Proton e.MAS 7 PHEV booking installation at the Proton EV Assembly Plant here today.
Proton-Geely Collaboration Increases Local Content, Jobs
Johari said that the collaboration also helped Proton increase local content levels to between 72 and 82 per cent for certain models, thereby opening up more opportunities for small and medium enterprises (SMEs) and local automotive component manufacturers to join the company's supply chain.
He said Proton today is very different from what it was 30 or 40 years ago because the company now has the capability to develop its own IP as a result of a strategic collaboration with Geely, which holds 50.1 per cent and 49.9 per cent stakes, respectively, in the company.
"So it has managed to build an industry that we once wanted to shut down, but now it employs almost 10,000 workers -- to be exact, around 9,700 with all this automation.
"Production has also exceeded 150,000 units per year, so this is actually one of the examples that I always emphasise to car manufacturers," he said.
In addition, Johari said Proton also contributed approximately RM806 million to the government's revenue through corporate tax payments, excise duties, import duties and sales tax.
He added that Proton's success proves that foreign investment, which emphasises technology transfer, talent development and strengthening the local supply chain, can create a significant multiplier effect on the national economy. - Bernama
