No adverse effects from Proton stake sale - Finance Ministry

The government is not expecting any adverse effect from the sale of a 51 per cent stake in Proton Holdings Bhd to a foreign investor, said the Finance Ministry.

It said the collaboration with the foreign strategic partner would increase Proton's capabilities in producing various types of vehicles with the latest technology and at competitive prices.

"The manufacturing of new products resulting from the strategic partnership is expected to increase the factory's productivity and efficiency.

"Overall, with the increase in production of cars and local components, the partnership would result in a more viable business model for Proton, its suppliers and car dealers in Malaysia," the ministry said in a written reply to a question from Hee Loy Sian (PKR-PJ Selatan) at the Dewan Rakyat today.

The Finance Ministry also said that Proton's sole stakeholder, DRB-Hicom Bhd is currently in the final evaluation stage of the bids it had received to ensure that due consideration was given.

"This is to ensure that the full benefits would be received by the interested parties, which include stakeholders, staff, suppliers and dealers, as well as consumers and Malaysians in general," it said.

-- BERNAMA