KUALA LUMPUR, March 13 — Proton is still Malaysia’s national car even though it is now under semi-private ownership, Deputy International Trade and Industry Minister Liew Chin Tong said in the Dewan Rakyat today.

He explained that Proton meets the necessary criteria to qualify as a national car brand because the company’s majority stake is locally owned and continues to employ 8,500 workers who are 99 per cent Malaysians.

"In addition, Proton has appointed more than 180 Tier-1 local companies that are involved in the overall supply chain, while the average value of local procurement is in between 75 per cent to 80 per cent especially for the models developed locally.

"Proton has also carried out local research and development activities to enable it to assemble the platform, upper body and engine for models such as Persona, Iriz, Exora, Saga and various other models before,” he said during the Minister’s Question Time this morning.

Liew was responding to Petaling Jaya MP Lee Chean Chung who wanted to know why Proton is still given special treatment when it is only 51 per cent owned by Malaysians.

The PKR backbencher also asked if the special treatment would be abolished.

Liew explained that the National Automotive Policy 2020 (NAP 2020) which lists the criteria for Malaysian vehicles can be used as a guide for Proton’s status as a national car brand.

He said that to qualify as a national car brand, it must be majority owned by Malaysians and focus on the development of local supply chains.

He added that the criteria also include the carmaker’s ability to conduct local research and development activities and provide many job opportunities for locals.

Liew said like other local vehicle manufacturing companies such as Perodua, Honda, Toyota and Volvo, Proton is also given direct tax incentives based on the manufacturing activities carried out because it involves activities that are encouraged.

"Proton and other local vehicle manufacturers as well have the opportunity to enjoy indirect tax incentives such as exemption from import duty, excise duty and sales tax, depending on the method current evaluation, which is through cost and benefit analysis. "Based on the contribution of Proton and Perodua to the local automotive industry, both companies are still treated as national car manufacturers.

"However, Proton and Perodua must ensure that the criteria outlined under the NAP 2020 are complied with,” he added.