The impending sale of the controlling stake in national car maker Proton was akin to selling strategic national assets to foreigners, said Teja state assemblyperson Chang Lih Kang.

Chang said that if the plan to sell the 51 percent stake in Proton goes through, Malaysia will likely lose rights to the brand, the patents, logo and other intellectual properties.

New foreign owners of Proton would likely use foreign labourers in Proton's existing plants as they come cheaper than locals.

"As for skilled workers, foreigners will likely employ workers from developed countries such as Japan who have far better expertise in the industry unlike Malaysia.

"It doesn't mean our country doesn't have qualified individuals, but Malaysia is suffering from brain drain as many (skilled workers) are working abroad," Chang (photo) said in a statement.

Putrajaya has ordered Proton to find a strategic partner by Feb 15, as part of a deal for a RM1.25 billion soft loan. Proton is wholly owned by DRB-Hicom Bhd, a publicly traded government-linked company (GLC).

Although the deadline has passed, France's PSA Group and China's Geely Group are reportedly still in negotiations with Proton.

Proton, established in 1983, has been making heavy losses in recent years, as it continues to lose market share, weighing down DRB-Hicom's performance.

Chang said the correct thing for Putrajaya to do is to sell Proton's 51 percent stake to locals through an open tender process.

He also questioned if selling Proton had more to do with politics than good business practices.

"Is selling the controlling stake in Proton merely an attempt to erase the success and legacy of Dr Mahathir Mohamad who is now leading Parti Pribumi Bersatu Malaysia?"