Some RM300 million of the total RM1.5 billion soft loan approved to Proton Holdings Bhd (Proton) has been disbursed to the national car maker, said Treasury secretary-general Mohd Irwan Siregar Abdullah.

He said the remaining sum would be released in stages and as per request.

"First they (Proton) pay off all the debtors like vendors. We go according to progress, evaluate and release (the soft loan)," he said when asked on the RM1.5 billion soft loan after launching the National Code Challenge at the Finance Ministry in Putrajaya today.

In April, it was reported that the government had approved a RM1.5 billion loan to Proton with several conditions attached.

Mohd Irwan said the loan was not a bailout but to help rejuvenate Proton.

He said the aim of such a loan was to make Proton "a new entity with bigger energy", with the government behind supporting the national car maker.

"And of course with the soft loan we put certain criteria (for Proton)," he said.

"We already put a guideline that first they must find a strategic partner and must do a turnaround plan, must pay off all the vendors and everything," he added.

Mohd Irwan said Proton is in talks with potential strategic partners, without naming the parties.

He said in 1993 Proton controlled 70 percent of the Malaysian market but now it is only 18 percent.

"It (Proton's share of the Malaysian market) has dropped drastically now. With this new strategy we hope Proton will capture the market," he further said.

- Bernama