Questions Time, 30 October 2008

Proton lost over RM600 million in 2007

Tuan Wee Choo Keong [ Wangsa Maju ] minta MENTERI KEWANGAN menyatakan bagaimana Proton mengalami kerugian sebanyak RM619.9 juta pada tahun 2007 sedangkan Proton diberikan subsidi-subsidi istimewa termasuk mengurangkan duti eksais dan sila kemukakan jumlah subsidi-subsidi istimewa tersebut untuk tahun 2007.

Jawapan:

Tuan Yang di-Pertua

Untuk makluman Yang Berhormat, kerugian sebenar Proton bagi ntahun kewangan berakhir 31 Mac 2007 adalah sebantak RM618.1 juta.  Kerugian ini berpunca terutamanya dearipada kemerosotan jualan kenderaan sebanyak 40% kepada 110-,538 unit dalam tahun kewangan 2006/2007 berbanding 183,824 unit bagi tahun kewangan sebelumnya.  Kemorosotan jualan kenderaan pula desebabakan diantaranya oleh persekitaran pasaran yang sangat kompetitif dan nilai kereta terpakai yagn rendha menjejaskan prospek pembel;ian kereta baru.

2.  Bagaimanpun, Proton telah kembali mencatatkan keuntungan sebanyak RM162.2  juta bagi tahun kewangan berakhir 31 Mac 2008 iaitu peningkatan sebanyak RM780 juta berbanding kerugian yang dialami pada  tahun kewangan sebelumnya hasil daripada perubahan pengurusan dalaman yagn lebih efektif serta beberapa inisiatif perniagaan yagn akan memberikan kesan positif untuk jangka masa panjang.

3.  Untuk makluman Yang Berhormat juga, sussidi istimewas atau insentif yang direima Proton bukan merupakan suatau yang seksklusif untuk syarikat pembuat kereta nasional ini sahaja.  Sebaliknya, insentif yang sama juga diberikan kepada semua pemasang/pengilang kereta pemaqsangan tempatan (complete Knock Down [CKD]).  Sebagai contoh, insentif pengurusamn duti eksais melalui Program Rantaian Industrio seperti mana yang digariskan di  bawah Dasar Automotif Nasional diberikan oleh Kerajaan bergantung kepada jumlah pelaburan yagn telah dibuat oleh syarikat pembuat kereta berkenaan di dalam Negara.

4.  Bagi tahun 2007, Proton telah menikmati  beberapa insentif percukaian yagn turut juga dinikmati oleh industrio automatif umpamanya seperti berikut:

a.  Galakan Elaun Pelaburan Semula (Reinvestment Allowance) sebanyak RM89.7 juta;

b.  Potongan cukai dua kali bagi promosi eksport (Double Deduction Form Promotion of Export) sebanyak RM12.3 juta; dan

c.  Potongan cukai dua kali bagi premium insurans (Double Deduction For Insurance Premium) sebanyak RM0.6 juta.

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21 thoughts on “Questions Time, 30 October 2008

  1. Eric Goh

    Close the factory asap or else we will lose more and more yearly.
    Very stupid for the government to protect the dying proton.
    Cancel all this APs as it only benefited for BN peoples.
    If open up ,will benefit all the rakyats.
    Please bring the up in the parliement session.
    Hope our Wangsa Maju representative will help in this matters just like what you did well in the dinner money..
    hahaha!!! our mentri cannot even answer your question.
    Thanks N regards

    Reply
  2. ah Kow

    This is normal. Nothing shocking for Proton management. Just look at the sale of MV Agusta for RM5 when Proton bought the shares costing more than few hundred million Ringgit.

    This is the type of Proton top management that we have plus the Sleepy PM, who is dictated by the 4th floor.

    The government should set up a Royal Commission to investigate into such hug losses and he sale of MV Agusta for RM5.

    I am sure that the 4th floor will oppose any form of investigation into these two matters. WHY??????????????

    Reply
  3. Maxxy

    i already have this in mind for quite a while.if one day i become a prime minister,the first thing i am going to do is to close down proton.it is proton that make us buy all the import car super expensive.it is proton that make this country full of low class high cost car.our country should be full of BMW,BENZ.not this rubbish proton.

    Reply
  4. ahoo

    Please do not be hasty to decide that this brand be thrown over the wall, just like that. Would you all know that this industry alone is supporting the livehood of at least 100,000 citizens ? What is not right, make it right but of course we can only do it with the right man for the job.

    Look at Renault worldwide today. They were not a top brand as compared with many others but with Nissan as their partner’s, they are proud to stand tall in the international stage. Well, Proton may or may not be able to produce profits in the short terms in view of worldwide economic disaster but let us try to voice our opinion in order to have the best man for the job. Fire those that can’t produce result and change the entire management teams if they are not up to mark BUT spare the workers in this current turmoils or else many peoples livehood will be at stake.

    Families will be broken and national disaster will occurs. Let us fight them another day in want of performance but support them to change with the right people at the helm.

    Reply
  5. ~anok kelate~

    i think company or automotive industry not a problem….the problem is that people who handle the company got problem…..it seems like they BLAME MARKET TOO COMPETITIVE all this while…if u refer to other company Honda or Toyota….every few years they came up with new version (means their R&D is working hard enough to produce new things)…..compare with our proton…sigh!…..sad to say over here….if u r malaysian u should know what i mean….nothing proud to shout about…=(

    Reply
  6. kassimselamat2

    Proton rugi RM600juta pada tahun 2007 tapi pada tahun 2008 proton dah untung RM160juta.Jadi apa yang kamu marah2 lagi.
    Hang pikir senang nak tutup Proton.Guna otak sikitlah,mana semua pekerja2 nak pergi?
    Marah UMNO OKlah,Benci BN tak pe lah.Tapi nak bagi semua pekerja2 proton jadi penggangur itu satu tindakan yang bodoh.
    Hello brader orang proton pun ramai yang undi Pakatan tau!Kalau inilah pemikiran orang Pakatan,jangan harap akan dapat sambutan seperti dulu lagi diProton.

    Reply
  7. Eric Goh

    To maxxy,
    You have the best comments here..
    We have having all the rubbish and world most lousy car all because of Proton only.
    Moreover we are also buying the world most expensive cars.. just imagine!!! everybody. Very stupid proton they should sell off or close down immediately.
    Many foreigners are laughing at us…I am shy to tell our normal car prices for other makes.
    We want the best quality and latest models at the cheapest price.. This will benefit the rakyat.
    Lowest fuel and emission the world is heading with latest technolgy and robot car now wo accident.
    Please discuss well in parliement to sell off or shut down.. to further lost into billions.. Now is only millions… save the our money.
    Open up the automotive market and fight equally.
    Follow like our all our Asean countries………

    Reply
  8. kassimselamat2

    Halo Maxxy

    What is it that you are upset about with Proton

    1) it is now making money RM160m. can you understand this?
    2) you like toyota, good, I respect your choice. But why are you upset when I like proton? I do not like Toyota but I am not asking UMW to close the plant.
    3) proton was set up long time ago and about 100,000 people depends on them.where do you want to put them?
    4) frankly maxxy,you are lying to us here on this blog.Please tell us what are you really upset about with proton?

    Reply
  9. Maxxy

    ok wat am i upset about proton?i already mention it on responses number 3.(refer to responses no.3)

    and yes i understand that proton is making money 160m,but who will be going to benefit from it?the 100,000 worker and some ‘other people’?while hundred thousand of other people suffering paying for the expensive car installment.

    i nvr upset on ur choise either(if there is such a statement showing that i am upset on ur choise,tell me),i just ask u to imagine!!!

    where i am going to put the 100,000 worker?this is a good question,wait untill i become a prime minister(which is imposible) then i will answer u this question.

    and lastly what i have lie to u or other people who view this blog?wat i type here is just merely my thought,my opinion,my imagination.In my response no.3 i already stated there IF I BECOME PRIME MINISTER(which is impossible again),u see that (IF) word????

    Reply
  10. lee wee tak

    if u go to Thailand, people drive toyotas around. why? coz instead of having their own “Chap MongKut”, “Chap Pattaya”, “Chap Tom Yam” brand national car, the Thais let big car makers set up manufacturing plants.

    This benefited the Thais in so many ways

    1) employment opportunities
    2) better cars at affordable prices

    We, base on Mahathir’s ego trip, manage to have an inefficient baby, who after more than a couple decades of state trade barrier protection, asked for another stretch of protection!

    My friend’s husband worked there and he did not have positive things to say about their work ethnic and culture.

    Korean cars are way ahead of Proton, let alone Japanese. Either let someone capable to run Proton, or close it down and adopt the Thai model.

    This is not about patriotism (if the people running Proton have any national pride, they won’t be in such a lamentable state of international competitiveness now), it is about giving all Malaysians a deal they deserve

    Reply
  11. ~anok kelate~

    proton tidak perlu ditutup…tetapi perlu menukar PENGURUSAN ATASAN yang lebih BERUPAYA…..demi kebaikan proton and pekerja-pekerja mereka….WIN-WIN situation…malah akan berkembang pesat…. maju kedepan dan berdaya saing di pasaran dalaman dan luaran.

    Reply
  12. resident.wangsamaju

    No, we don’t tutup anything. This country needs to open up to its own people, so that its main industrials and businesses can tap management talent from all segments of the population and not remain ethnic.

    Proton so far has been enduring poor management capability, lack of quality, lack of creativity and technology. Its products show, and they differ very much from the Proton slogans like ‘Daring to Dare’ or ‘Power at the Heart of Revolution’ etc.

    Reply
  13. resident.wangsamaju

    The name of the game is excelling through competition. Let’s take a brief look at UMW, who is third in the Malaysian market share (under 20%) for passenger and commercial vehicles. UMW’s automotive business is a wide range, coming in from heavy industrial vehicles to passenger cars, but no harm taking a 5 minute look (what I did) at a few figures:

    UMW Automotive segment
    RM 2005 2006 2007
    Turnover 7.5b 7.1b 7.7b
    Operating profit 394.1m 349.5m 487.1m

    Proton (inclusive of other business segments)
    RM 2005 2006 2007
    Turnover 8.5b 7.8b 4.7b
    PBT 399.3m 18.0m -618.1m

    The above is not apple-to-apple comparison because of time constraints, but it gives a rough overview of both companies in terms of profitability.

    From 2005 to 2007, eventhough Proton had severe market share loss, it still maintain its second market lead. Its bigger market share in passenger and commercial vehicles however did not paint a similar picture of its profits- which was hammered by low margins and high production costs. Whilst Proton profits took quite a big dip from its financial years 2005/2006 and 2006/2007, UMW looked resilient- with operating profit declining only 5.62% in its financial year 2006 and climbing up double digit at 11.3% in the following financial year 2007. It looks like dampening car sales weren’t the only factor which contributed to Proton’s loss.

    A few big items caught my eye in Proton’s 2007 profit and loss account:
    -RM48m R&D
    -provision for warranties and free service RM38.7m
    -rental of land & buildings RM16.8m
    -finance costs (mostly long term loans) RM35.5m- huge borrowings there.

    Despite of the above, I think Proton can still be saved if more prudent tactical cost management is in place. Its production and frontline service processes also needs to be relooked- a genuine embrace of Lean Manufacturing or Six Sigma is most recommended. For the record Idris Jala, a former HR guy, did bring his Six Sigma experience over from Shell over to MAS. Overall, Proton will need a change of management team to oversee it into a global brand. It’s also time for the 30% minimum equity for Bumiputeras for Malaysia plcs to be relaxed in order to deliver in the much needed foreign investment.

    God help us.

    Reply
  14. ahoo

    Be angry by all means, by the wanton wastages, leakages, failed projects (white elephants), corruptions and make up your mind that these cannot continue. Stand up and be counted and get like minded peoples to share your sentiments that either there are changes forthcoming from the ruling regime, for the betterment of all rakyats or we need to pursue alternative for change of govt.

    Note that in all industries, it take times to nurture and the likes of Japan and Korea are way ahead is simply because they have had very sound R&D. What is lacking in Malaysia is our very attitude. Once, we achieve a headway in something, we will relax and are satisfied.

    Until and unless we are hungry for more success, the lackadaisical attitude will remains and will cause damage beyond our comprehension. Please spare a thought and look at the other side of thing in any debate or argument as many things that the govt had done over the past decades maybe unjust and cause peoples to suffer. This will take time as first and foremost there must be willingness to face changes in the form of seeing things done in all sectors of govt to be measured with a minimum standard of KPI (key performance index). The attitude in doing things must first be changed before any real change can take place.

    Let me share an excerpt from the power of attitude from John C.Maxwell.

    Attitude …..

    It is the reflection of our true selves.
    Its roots are inward, but its fruit is outward.
    It is our best friend – or our worst enemy.
    It is more honest and more consistent than our words.
    It is a future outlook based on past experiences.
    It draws peoplle to us – or repels them.
    It is never content until it is expressed.
    It is the libirian of our past.
    It is the speaker of our present.
    It is the prophet of our future.

    So as far as Proton is concern, the attitude of the management must be positive for changes. Get the best brains for R&D and come up with affordable new models for sale. At the same time, plans must be in place to find the right candidate for the top post if the current set of management is not up to mark. Please take a good look at MAS today and compare it to the years of losses then. We have many Malaysians that are not only talented but have the right attitude in wanting to see success in their field of work and it take courage from the ruling govt to effect such a change for the good of all rakyats.

    Thus, let us all cry for change from the govt for the best brains to guide and steer the many GLCs’ or we have to change the govt to one that has the peoples at heart. Please note the case of ” Silterra (M) S/B “.

    This case is even worse off than Proton and now wanting more funds of RM 8.5 bil after losses of over 1 bil despite govt pumping in RM 5.2 bil since 1994. We must demand that they
    ( Khazanah & govt ) answer to such a scandal. Get those who mislead the people with such wastages in jailed !!! I’m now very angry, for with so many billions, we (rakyats) could have been richer with less taxes on income, cars, and more subsidy from the govt for many other purchases. Just look around and know that we are all taken for a ride by the current ruling politicians in talking one thing but doing otherwise.

    Please be angry with them and not the workers of any GLCs’ nor govt servants though, as the “ruling regime” has had misguided policies that causes so much disunity amongst Malaysians today.

    Reply
  15. ww

    Let down the mindset of “Bumiputra” is the “Tuan” then, PRoton will be able to change management, then the car will sell, then people will benefit!

    If Perodua can do it…why not Proton.

    Merely change the management will not profit…rubbish will go in and rubbish will come out.

    If Nissan can hire a CEO of a foreigner to safe itself from going down…i believe Proton can. And u guys know how big an ego of a Japanese…..

    160million profit…. better dun said that loud…. Any small medium industry at Puchong can manage that….

    It’s a shame to even speak that out loud….some more in Parliment……

    ai…

    Reply
  16. kiff

    our cars price is quite high after adding tax and duties and whatsoever cost due to our protective policy over this industry. this kind of protective policy also apply in developed countries such USA, Japan,korea and europe countries under various name such as quota, tariff and quality control (etc emission level). so, this protective policy is considered normal practice everywhere in the world.

    comparing with much matured competitors such as toyota (estd since 1936), ford (1903), GM (1908), Hyundai (1967), VW (1937) make proton (1983) look so kiddy and simple reason to explain that at what stage currently proton sit in her cycle life.

    so for people who can afford to buy ‘quality’ cars from Japan or other parts of the world just enjoy your car without you realised that sometime this ‘quality’ brand (manufacturers and importers (AP holders especially)) doing exorbitant profit with your money.

    Reply
  17. ww

    To Kiff,

    So u suggesting we all buy Proton??

    Do u think the AP Kings don’t have influences at Proton selling???

    HAHA… wake up…!

    I end up loosing money both way…but the other way give me more comfort and safety in terms of quality….

    Reply
  18. kiff

    to ww and all readers,

    i’m not suggesting any brand. only to explain that since 2005 our govt reduced tax and duties from time to time (after commited to AFTA) but car dealers (franchise and grey AP holders) reluctant to reduce the price or the amount reduced is not reflecting the actual tax reduced.
    much of reasons including that it will affect the second hand market, high demand from customers and attractive credit facilities.

    my argument that eventhough govt abolish all kinds tax to zero, it unlikely we will see car prices will be slash down accordingly. i think proton only contribute a bit portion to the high car price in our country.

    Reply
  19. ww

    So if even government can’t force them to reduce the price…who else can?

    When the one in power also said i cannot….

    Then who else should we turn to??????

    Why Thailand can do it, n we can’t????

    If u are HONDA CEO, you would like to reduce the price to gain more market share or u want to maintain the high price that only those “RICH one” can afford????

    Why need AP in the first place???

    Reply

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