Nor Mohamed: National pride calls for Proton to have foreign partner
By Isabelle Francis
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Second Finance Minister Tan Sri Nor Mohamed Yakcop said it is in the national interest for Proton Holdings Bhd to forge a strategic alliance with a foreign partner.

"National pride is beyond Proton. National pride is an important factor in making sure Proton survives and prospers.

"It's important for the auto industry for Proton to do well. It is not a zero sum game; we are all in it together. It is prosper thy neighbour sort of policy.

"It may be useful to get the expertise (of foreign partner) that we need so that there can be a symbiotic relationship to move on to a better level given the changing international environment," he told reporters after launching UMW Holdings Bhd's GaleriKu in Shah Alam on Jan 25.

The RM1.5 million UMW GaleriKu is sited on a 4,521 sq ft area at the ground floor of UMW's corporate building and showcases UMW's corporate history since 1917.

The items displayed at the gallery include a Toyota Corrolla-KE10, the first Corolla series assembled in 1986 by Assembly Services Sdn Bhd, an oilrig scale model, and insights into car assembly and rig operations.

Nor Mohamed also expected the local automotive industry to perform better this year, particularly in the second half, due to better macroeconomic figures, consumer confidence, spillover effects from the stock market and inflow of foreign investments.

"We have also held a number of meetings with the banking sector to inform banks that the government is very keen to see the banking system play its part in ensuring there is adequate financing for car buyers.

"This confluence of factors would create prosperity and, among other things should lead to a bigger purchase of cars," he said, adding that the national automotive policy was not the factor (that) affected car sales last year.

According to Malaysian Automotive Association (MAA), car sales drop 11% last year to 490,768 units and this year, it expected car sales to increase by a marginal 1.9%.

Based on the same report, the MAA also said national carmaker Proton's number one spot was overtaken by Perusahaan Otomobil Kedua Sdn Bhd.

On a separate matter, UMW managing director Datuk Dr Abdul Halim Harun said the group expected earnings growth across all its core business namely automotive, heavy equipment and oil and gas in the current financial year ending Dec 31, 2007.