Economist expresses concern over impact of sale of Proton stake on local labour

KUALA LUMPUR: An economist has expressed concern over the impact of the sale of Proton Holdings Bhd’s majority stake to a foreign strategic partner (FSP) on local labour at its Tanjung Malim plant.

Dr Jorah Ramlan of Ramlan PointOn Consultus Sdn Bhd said if the Tanjung Malim production plant were to be beefed up to cater for export markets in the Asian region, it would be an astounding move.

“It would increase employment in our country, as it is easier to employ locals than foreigners.

“If the foreign partner decides they would rather have the production plant in their country, or separate the business; maintaining the plant here but also have another in their country -- that would affect our employment rate,” she added.

Jorah, however, said these circumstances were all probabilities, and a definite answer (on the FSP) would be announced by Proton on Wednesday.

“These are all ifs, if you have an Asian partner, they might have it (production plant) in their country because labour force is cheaper there.

"If it’s European, it is very unlikely to have a production plant in Europe because of the high wages, (even now) they are moving out of their country in search of cheaper labour,” she told reporters on the sidelines of the Malaysian Economic Association Forum on Economic Governance in the Public Sector Governance, here yesterday.

Jorah said regardless of which partner, the investments would benefit Proton.

On the structure of the workforce, she said it might or might not change as it was up to the FSP and whether the it was included in the terms and conditions of the contract agreement.

“If they were already stated that this will remain as it is, there is nothing for us to be concerned about,” she said. — Bernama