THE contribution of Proton Holdings Bhd and Perusahaan Otomobil Kedua Sdn Bhd (Perodua) to the local automotive industry has allowed both companies to still be treated as national car manufacturers, Deputy International Trade and Industry Minister Liew Chin Tong said.

He said the two car companies need to ensure they adhere to the criteria outlined under the National Automotive Policy 2020 (NAP 2020). 

“With the criteria laid out under the NAP 2020, any company other than Proton and Perodua that can meet those criteria is eligible to be considered a national car project and be given similar treatment,” he said during a question-and-answer session at parliament today. 

He was answering Lee Chean Chung (Petaling Jaya-PH), who asked why Proton is still given special treatment since it is no longer a national carmaker. 

Liew said among the criteria for a Malaysian vehicle project are majority local ownership, a focus on developing the local supply chain, conducting local research and development activities, and providing job opportunities for the local community. 

He said Proton has provided job opportunities for 8,500 people, with 99% of them from the local community. 

“Proton appoints more than 180 Tier-1 local companies in its entire supply chain and the average value of local procurement is between 75% and 80%, especially for models that are fully developed locally,” he said. 

He said his ministry will continue to monitor Proton and Perodua’s compliance with the NAP criteria, and will update the policy in line with the development of the global automotive industry. – Bernama, March 13, 2023.