Tie-up can lift Pro­ton com­pet­i­tive­ness

New Straits Times - - Business / News - Ber­nama

KUALA LUMPUR: The im­pend­ing col­lab­o­ra­tion be­tween na­tional car com­pany Pro­ton Hold­ings Bhd and a for­eign strate­gic part­ner (FSP) will not only max­imise the man­u­fac­tur­ing ca­pac­ity at both its Shah Alam and Tan­jung Malim plants, but also al­low the com­pany to com­pete ef­fec­tively re­gion­ally and glob­ally.

The part­ner­ship will also en­able Pro­ton to com­pete with car man­u­fac­tur­ers like Honda, Toy­ota and oth­ers.

Asian Re­search In­sti­tute of Bank­ing and Fi­nance di­rec­tor Dr Ir­wan Shah Zainal Abidin said Pro­ton had no other choice but to un­der­take a man­age­ment par­a­digm shift as the coun­try’s lim­ited pop­u­la­tion of 30 mil­lion did not of­fer economies of scale to com­pete in­ter­na­tion­ally.

Join­ing hands with a FSP would not only re­sult in in­creased ouput and sales but also help Pro­ton carve a big­ger mar­ket share.

“The time is ripe now for Pro­ton to seek a part­ner, so that they can to­gether build up ca­pac­ity and not de­pend on the gov­ern­ment in fu­ture,” he said yes­ter­day.

Pro­ton’s cur­rent mar­ket share is only a mea­gre 14 per cent, com­pared with 63 and 64 per cent in the 1990s.

Ir­wan said such a tie-up would give an edge to the FSP, us­ing Pro­ton as a hub to tap the Asean mar­ket.

“We can learn their man­age­ment skills and work cul­ture. In­di­rectly, this will help Pro­ton shift into higher gear.

In the long run, he said, the col­lab­o­ra­tion would help res­cue Pro­ton’s ven­dor net­work, given the fact that or­ders for car com­po­nents had dwin­dled dras­ti­cally as sales were sig­nif­i­cantly off-tar­get.

“If we have no joint ven­ture with FSP, there is a pos­si­bil­ity that these ven­dors will cease op­er­a­tions as sales tar­gets can­not be met.

“The prospec­tive FSP will in­ject cap­i­tal into Pro­ton, raise ven­dors’ ac­tiv­i­ties and gen­er­ate em­ploy­ment,” said Ir­wan, adding that if the ca­pac­i­ties at both plants were merged, pro­duc­tion would rise to 400,000 units an­nu­ally.

This will im­me­di­ately en­able Pro­ton to have a wide reach as en­vis­aged in the Re­gional Com­pre­hen­sive Eco­nomic Part­ner­ship, which po­ten­tially in­cludes more than three bil­lion peo­ple, or 45 per cent of the world’s pop­u­la­tion.

Newspapers in English

Newspapers from Malaysia

© PressReader. All rights reserved.