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RM13.9b assistance for Proton since 1985, says minister
Published:  May 26, 2016 11:35 AM
Updated: 3:51 AM

PARLIAMENT The government has channelled RM13.9 billion in assistance for national car manufacturer Proton since its inception in 1985, the Dewan Rakyat was told.

In a written reply to Teo Kok Seong (DAP-Rasah), International Trade and Industries Minister Mustapa Mohamed said the sum comprise government grants, tax exemptions and other non-fiscal assistance.

"This is to ensure that the company remains competitive in a highly challenging industry," said Mustapa, who is Jeli MP.

Teo had asked the government to state the amount of assistance it had provided Proton and reasons for its alleged failure, despite the help given.

Mustapa, however, denied that Proton had failed to perform, citing RM24 billion in tax contributions since 1985.

"In the (Proton) ecosystem, there are 12,000 locals working directly for Proton and 130,000 others indirectly involved through the automotive industry," he said.

This is aside from hundreds of other local entrepreneurs who are in the business of selling components and spare parts, showroom, service centres and others.

Mustapa also reiterated the government's commitment to continue supporting development of the local automotive industry, including transformation of Proton and its supporting ecosystem.

The Singapore Straits Times had in March reported that Proton was urgently seeking a RM1.47 billion grant from the government to remain in operation.

Proton had at the time declined to comment on the report.

In April, Proton agreed to government terms for a RM1.5b soft loan.

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