Proton Holdings Bhd (Proton) has, in general, agreed to the terms of the RM1.5 billion soft loan, approved by the government last week, says International Trade and Industry Minister Mustapa Mohamed.

“We do not see big problem on that,” he told reporters after launching the Weststar Group’s completely knocked down (CKD) G10 MPV model in Kuala Lumpur today.

Mustapa said currently, the national car manufacturer was in discussion with the Finance Ministry on the matter.

Last Friday, the government announced that it had granted Proton’s application for a soft loan with several conditions attached to ensure the national carmaker was competitive.

Among others, Proton must come out with a turnaround plan to restructure the company and provide a strategic plan to expand its local and international market.

Elaborating further, Mustapa said the government would set a timeline for Proton to implement its rationalisation plan.

“The government will not interfere in the company’s operation, but we will monitor it based on the conditions set by the Finance Ministry,” he said.

Asked if the government was bailing out Proton, the same way it did with Malaysia Airlines System Bhd (MAS), Mustapa said: “Proton’s (case) is not like (that of) MAS, it’s a private company but it produces our national car.

“We are also taking into consideration the interest of its some 60,000 workers and vendors.

“This is why we’ve decided to grant them the soft loan... We hope Proton will do better as it is important for 60,000 people working under the company,” Mustapa added.

- Bernama