The media last week again had the spotlight on Proton and the restless period that it is going through in terms of future and profitability.

I am, however, extremely puzzled by two key financial statistics that have come out from Proton's recently announced public financial reports.

Firstly, Proton is in the business of supplying cars and this normally is not associated with bad debts as there should be bank guarantee or anther form of undertaking in return for car deliveries to dealers.

So I am stumped no end as to how could it record an increase in provision for bad debts. Perhaps this is the drawback of Proton having its own set up of dealerships to sell cars.

Secondly the levels of inventories are also up, which do not tie with the rising provision noted above as well as the market talk about the long waiting period for buyers. Maybe this is because all the old models have been overproduced and sales have dipped as soon as new models are on the market. In any case, this again, paints a picture of very bad planning and strategic management.

We must really look at the whole national car project and think if Malaysia is really gaining from it or if is it just an illusion. Finding the right person to lead Proton may not be enough if it has had an uneconomical and unsustainable approach from day one.