PROTON REMAINS OPEN TO FOREIGN PARTNERSHIP

KUALA LUMPUR, March 5 (Bernama) -- National car producer, Proton Holdings
Bhd, is open to any international automobile company keen on a partnership,
Deputy Finance Minister Kong Cho Ha said Thursday.

"This is the policy of Proton," he said during a question and answer session
at the Lower House of Parliament sitting Thursday.

"But amidst the challenging economy currently, Proton has taken its own
initiative to restructure its internal management towards more effectiveness and
efficiency in the long run," he said when answering a question on whether Proton
had plans to continue with its negotiations and establish joint ventures with
any international automobile company.

Kong explained that Proton was constantly seeking to introduce new and
attractive models as well as upgrade its technologies so that it is on par with
international brands.

The market for Proton cars has also remained competitive and its prices are
lower compared with other car brands, Kong said in reply to a supplementary
question on why Proton was less popular than other cars.

Kong said the number of Proton cars produced in the first nine months for
the financial year ending March 31, 2009, increased to 122,000 units compared
with 99,000 units produced for the full year ended March 31, 2008.

"We realise that the automotive industry at the global level is facing a
recession where both demand and production have gone down signigicantly, but for
us here, the government is always looking into various measures to ensure that
the local automotive industry, especially Proton, remains competitive," he said.

For the financial year ended March 31, 2008, Proton recorded a pre-tax
profit of RM162.2 million compared with a loss of RM618.1 million in the
previous year. (US$1=RM3.70)
-- BERNAMA