Proton Chalks Up RM162.2 Million Profit – Najib

By Friday October 31st, 2008 No Comments

KUALA LUMPUR, Oct 30 (Bernama) — Proton recorded RM162.2 million profit for financial year ended March 31 2008, up RM780 million from the losses incurred in the previous financial year, the Dewan Rakyat was told Thursday.

Deputy Prime Minister Datuk Seri Najib Tun Razak said the profit was the result of the more effective internal management changes and business initiatives taken that would yield long-term positive impact.

“Proton’s real loss in the financial year ended March 31 2007 was RM618.1 million primarily caused by 40 percent drop in car sales to 110,358 units in the 2006/2007 financial year from 183,824 units in the previous financial year.

“The drop was due to the very competitive market environment and low value for used cars affected prospects to buy new cars,” said Najib, who is also Finance Minister, in his written reply to Wee Choo Keong (PKR-Wangsa Maju).

Najib said the special subsidy or incentives received by Proton were not something exclusive for the national car manufacturer alone.

Similar incentives were also given to all assemblers or manufacturers of completely-knocked-down cars, he said.

“For instance, the government gives excise duty reduction incentive via the industry networking programme as stipulated in the National Automotive Policy depending on the total investment made by a company in the country,” he said.

Najib said several taxation incentives enjoyed by Proton were also extended to the automotive industry last year.

They include RM89.7 million in reinvestment allowance, RM12.3 million for double deduction for the promotion of export and RM6 million for double deduction for insurance premium, he added.

Source : Bernama

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