Proton has always been a controversial baby. As Proton's birth did not have the benefit of a full, free and transparent debate, the founder naturally hopes to be able to demonstrate to all and sundry that Proton is an unqualified success.
Is Proton a success? The number of Proton cars on Malaysian roads proves that it has helped to save, on balance, foreign exchange. It gives the opportunity for everybody to own a car, thereby achieving the objective of a car for every household.
On the other hand, because of the promotion of using private cars, public transportation - particularly in Kuala Lumpur and the outskirts - has been rendered undependable.
Proton has been enjoying government protection and, as yet, is unable to stand unaided. The hot issue being debated currently is whether Proton should have a foreigner as partner, with ownership in the equity.
For prestige and pride, some quarters are against foreign partnership in Proton's equity. Pride aside, foreign ownership should only be allowed if protection on Proton can be lifted. Otherwise, foreign partners will be enjoying benefits at the expense of local consumers.
The AP scheme can then be abolished if Proton can stand unaided but with a foreign partner. The APs have already helped to achieve the objectives of the NEP as far as the motor industry is concerned in that bumiputeras now monopolise the new car industry.
Now that NEP objectives in the motor industry have been achieved, it is illogical to continue with the NEP's implementation in this sector. The abolition of APs can pave the way for foreign partnership in Proton. It is, therefore, time to remove the AP system.
