And how much money have we lost on Proton, Jomo?
So, if Malaysia embarks on its Third National Car project, car prices will have to remain high to allow the Third National Car to become viable. In the end, Malaysians will be paying for the Third National Car by paying high prices for cars just like they have been paying high prices for cars to keep Proton viable over the last 35 years.
NO HOLDS BARRED
Raja Petra Kamarudin
“We have already lost so much money on Proton, let’s not lose any more money,” said Council of Eminent Persons member Jomo Kwame Sundaram.
Okay, so how much money has Malaysia lost on Proton? And I am NOT talking about the direct losses that Proton made or the money that the government has had to pump into Proton. I am talking about the money that Malaysians indirectly lost in the effort to make Proton viable.
To be honest, I do not have the actual figures and I am merely working on an educated guess. However, while my figures may be off the mark, the real figure would not be that far off.
The Third National car is a bad idea, says Jomo
There are currently about 14 million private cars on Malaysian roads, or an average of 0.45 cars for every person.
How many cars have been sold in total since Proton started business 35 years ago in 1983? Industry players put the figure at 20 million new cars sold over 35 years.
They also estimate that Malaysians are paying an average of RM30,000 per car to subsidise Proton over the last 35 years. That comes to a total of RM600 billion.
You pay ridiculous prices for cars in Malaysia just to make Proton appear cheaper
Yes, Proton has cost Malaysians RM600 billion in indirect ‘contributions’. Jomo is just talking about the direct losses that Proton made, which also comes to billions. He has yet to include the amount that Malaysians have been paying over the last 35 years to keep Proton in business. Without Malaysians paying RM600 billion more for the cars they buy, Proton would have closed shop a long time ago.
So, if Malaysia embarks on its Third National Car project, car prices will have to remain high to allow the Third National Car to become viable. In the end, Malaysians will be paying for the Third National Car by paying high prices for cars just like they have been paying high prices for cars to keep Proton viable over the last 35 years.
