KUALA LUMPUR: The Government is not expecting any adverse effect from the sale of a 51 per cent stake in Proton Holdings Bhd to a foreign investor, said the Finance Ministry.
It said the collaboration with the foreign strategic partner would increase Proton's capabilities in producing various types of vehicles with the latest technology and at competitive prices.
"The manufacturing of new products resulting from the strategic partnership is expected to increase the factory's productivity and efficiency.
"Overall, with the increase in production of cars and local components, the partnership would result in a more viable business model for Proton, its suppliers and car dealers in Malaysia," the ministry said in a written reply to a question from Hee Loy Sian (PKR-PJ Selatan) at the Dewan Rakyat on Monday.
The ministry also said Proton's sole stakeholder, DRB-Hicom Bhd, is in the final evaluation stage of the bids.
"This is to ensure that interested parties, who include stakeholders, staff, suppliers and dealers, as well as consumers and Malaysians in general would receive the full benefits," it said.
