With the creation of Proton Holdings to take over the present listed status of Proton it is clear that the company is desperate to divest and perhaps also to diversify its core businesses.

In simple terms what it really means is that the board of Proton has now realised that the car project is now not as promising as it used to be. Therefore it is imperative that appropriate measures be taken to preserve value.

This of course is an admission that the original vision of the national car project is a failure and billions of ringgit of public money are now in jeopardy. The majority of the shareholders are government-related investors and local fund managers since most foreign investors and funds have already dumped Proton shares.

Without a meaningful holding of the shares by foreigners and with a 'whispered' embargo on sales of the shares by government-related investors and fund managers, its market price may not reflect its true market value as it tends to be sticky in its downwards movements.

The directors have no choice but to hold to the present position and await the appearance of a white knight who will relieve it of its present dilemma, a legacy left by the author of The Malay Dilemma.