Malaysia is considering several "rescue" proposals for ailing national automaker Proton which could soon see the company taken over, a report said.

Financial weekly The Edge , citing unnamed sources, said at least two proposals had been recently floated by the Naza Group and DRB-Hicom, both of which assemble and distribute vehicles.

The plans would see the government's investment arm, Khazanah Nasional, sell its 42.7 percent stake in Proton, although any move would depend on favourable Proton share prices and national interest considerations, the report said.

"It is unlikely that we will accept a proposal that will not safeguard the long-term interest of the national auto industry," the weekly quoted a source as saying over the weekend.

Declining sales

The chief executive of Malaysia's leading multinational Sime Darby Berhad, Ahmad Zubir Murshid, told the Edge the conglomerate had also submitted a proposal for Proton "a long time ago", but would not reveal details.

The embattled carmaker has been unable to arrest a steady decline in market share as foreign competitors woo Malaysian drivers.

Proton Holdings last week posted a RM58.6 million loss in the first quarter to June.

The result came after a RM12.35 million loss in the same quarter a year ago, it said. Sales slumped to RM1.42 billion against RM2.05 billion ringgit a year ago.

Proton has blamed the latest poor result on declining car sales in Malaysia and a lack of new models, with the next contenders due to hit the streets only next year.

The Edge said sources indicated the government intended to settle the Proton issue "urgently."