AFTER MAS AND AIRASIA, WILL IT BE PROTON AND PERODUA?

KUALA LUMPUR, Aug 11 (Bernama) -- One day after the Malaysia Airlines and
AirAsia share swap deal, Perusahaan Otomobil Kedua (Perodua) Sdn Bhd Wednesday
neither agreed nor denied the possibility of a merger with Proton Holdings Bhd.

The Perusahaan Otomobil Kedua Sendirian Berhad (English: Second Automobile
Manufacturer Private Limited), usually abbreviated to Perodua, is Malaysia's
second largest automobile manufacturer after Proton.

Perodua Managing Director Aminar Rashid Salleh said the swap deal
between the two local aviation companies cannot be compared to automakers as
their business modules were different.

However, Aminar Rashid said both Proton and Perodua were already in talks,
not for a merger, but in other areas that the two national automotive companies
could collaborate.

"We are already in discussion with them, in fact we already had some
meetings on few (areas) of collaboration.

"Procurement on purchase of raw materials and vendor development were the
main issues disscused, and so far the talks have been fruitful," he said after
handing out 'duit raya' to some 50 school students, here Wednesday.

Aminar Rashid said the talks, even if not on merger, wouls still benefit
both the companies and also the local automotive sector.

On car sales, he said, Perodua was very happy to regain the number one spot
in Malaysia and planned to continue to sustain the spot.

Last month, he said Perodua recorded sales of some 16,400 car units and this
month, the company was hoping to achieve the same number, given the festive
sales boost.

"We are trying to keep the momentum until end of this year," he said.

He also added that the new Perodua Myvi will continue to be the main driver
of sales in the coming months.

On its Indonesia market, Aminar Rashid said the company could expect to
sell up to 500 cars there a month.

"The target is revised now given that the economic situation there is good
and it is now easier to do business there," he said.