I refer to the article Proton is not out of the woods despite tie up with Volkswagen AG.

Proton has come a long way but there is no denial that its survival depends on the apron strings of government support and protection. Whether its existence is designed to serve political interests or economics remains to be seen.

Proton's survival is important because the interests of a lot of interest groups are at stake: namely politicians, downstream industries and the employment market.

In the era of globalisation, the marketing strategy of car manufacturers are changing rapidly to face new challenges. Foreign car-makers are seeking strategic alliances for different reason, chiefly for economics of scale and to increase market share by setting up manufacturing hubs around the world.

Whereas Proton is seeking a strategic partner because it lacks sufficient technology and related know-how. An alliance, therefore, is necessary for its market survival.

In order to survive, Proton definitely has to increase its market share, not only in Malaysia but in overseas markets as well. Twenty years of protection is a long time and it can't keep saying that it is not ready for competition.

Unless and until Proton operates with a private enterprise mentality and addresses issues like cost efficiency, productivity and real innovation amongst others, it is nothing more than a state-owned albatross.

Only when it can compete without subsidy and protection, can we say that Proton has come of age as an international car manufacturer.