Government will not ‘force’ merger between Proton and Perodua

Datuk Seri Mustapa Mohamed, the Minister of International Trade and Industry said that the federal government will not in any way ‘force’ for the merger of the country’s 2 major car makers Proton and Perodua as critics have speculated. The talks of a possible merger between the local automakers have been going on for a while but no decision has yet been made. Mustapa said that if a merger is to be reached, stakeholders from both the companies must come to an agreement.

He said that as such, the government cannot force them to come into an agreement whether or not a loose cooperation or a merger is to be reached. The government however will encourage and facilitate talks between the 2 companies which he said is a major step and hence is not as straightforward as some might have thought.