TANJONG MALIM: The strategic cooperation between Proton Holdings Bhd and Geely Holding Group continues to strengthen the position of the national car manufacturer in the automotive industry through technology transfer, intellectual property (IP) development, increased local contentand a strengthenedlocal vendor ecosystem.
Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani said the collaboration demonstratedthat quality foreign investment can enhance the competitiveness of local companies when both parties share technology and expertise, rather than merely turningMalaysia into a marketforselling products.
He said the approach can be seen through the collaboration between Proton and Geely, under which both companies have jointly developed technology and IP, thereby strengthening Proton’s ability to compete in the increasingly competitive automotive industry.
“When Geelycomes to our country, itdoesn’t just want to sell cars, but itwants to coexist with the ecosystem we have and build this ecosystem together with our entrepreneurs. Our manufacturing component players canalso benefit together by creating job opportunities, generatingprofits and ensuring the government benefits as well,“ he told reportersafter officiating the line-off ceremony forthe Proton e.MAS 7 PHEV booking installation at the Proton EV Assembly Plant here today.
Johari said the collaboration also helped Proton increase local content levels to between 72% and 82%t for certain models, thereby opening up more opportunities for SMEs and local automotive component manufacturers to join the company’s supply chain.
He said Proton today is very different from what it was30 or 40 years ago because the company now has the capability to develop its own IP as a result of a strategic collaboration with Geely, which holds 50.1% and 49.9% stakes,respectively, in the company.
“So ithas managed to build an industry that we once wanted to shut down, but now it employs almost 10,000 workers – to be exact, around 9,700 with all this automation.
“Production has alsoexceeded 150,000 units per year, so this is actually one of the examples thatI always emphasise to car manufacturers,“ Johari said.
In addition, Proton contributed about RM806 million to the government’s revenue through corporate tax payments, excise duties, import dutiesand sales tax.
Proton’s success proves that foreign investment, which emphasises technology transfer, talent developmentand strengthening the local supply chain, can create a significant multiplier effect on the national economy, Johari said.
